Discounted Cash Flow (DCF) Analysis Unlevered

SCI Engineered Materials, Inc. (SCIA)

$3.35

-0.20 (-5.63%)
All numbers are in Millions, Currency in USD
Stock DCF: 3.37 | 3.35 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 6.8011.3612.9510.9013.2616.1419.6523.9229.1235.44
Revenue (%)
EBITDA 0.521.390.831.050.431.261.541.872.282.78
EBITDA (%)
EBIT 0.050.930.330.52-0.520.640.780.951.15
EBIT (%)
Depreciation 0.470.450.500.530.430.740.901.101.331.62
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 0.921.801.832.924.143.283.994.865.917.20
Total Cash (%)
Account Receivables 0.340.480.350.460.530.650.790.961.171.42
Account Receivables (%)
Inventories 0.622.752.751.181.072.372.893.514.285.21
Inventories (%)
Accounts Payable 0.310.320.250.150.250.410.490.600.730.89
Accounts Payable (%)
Capital Expenditure -0.10-0.38-0.38-0.08-0.71-0.45-0.55-0.66-0.81-0.98
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 3.35
Beta 1.603
Diluted Shares Outstanding 4.43
Cost of Debt
Tax Rate -45.81
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.263
Total Debt 0.10
Total Equity 14.85
Total Capital 14.95
Debt Weighting 0.65
Equity Weighting 99.35
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 6.8011.3612.9510.9013.2616.1419.6523.9229.1235.44
EBITDA 0.521.390.831.050.431.261.541.872.282.78
EBIT 0.050.930.330.52-0.520.640.780.951.15
Tax Rate 23.98%1.91%0.99%-210.12%-45.81%-45.81%-45.81%-45.81%-45.81%-45.81%
EBIAT 0.040.920.331.60-0.760.931.131.381.68
Depreciation 0.470.450.500.530.430.740.901.101.331.62
Accounts Receivable --0.140.13-0.11-0.07-0.12-0.14-0.17-0.21-0.25
Inventories --2.1401.570.11-1.30-0.52-0.63-0.76-0.93
Accounts Payable -0.01-0.07-0.110.100.150.090.110.130.16
Capital Expenditure -0.10-0.38-0.38-0.08-0.71-0.45-0.55-0.66-0.81-0.98
UFCF 0.40-1.270.523.40-0.14-0.200.720.871.061.30
WACC
PV UFCF -0.14-0.180.580.640.700.76
SUM PV UFCF 2.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.22
Free cash flow (t + 1) 1.32
Terminal Value 14.33
Present Value of Terminal Value 8.42

Intrinsic Value

Enterprise Value 10.91
Net Debt -4.04
Equity Value 14.95
Shares Outstanding 4.43
Equity Value Per Share 3.37