Discounted Cash Flow (DCF) Analysis Unlevered
Steel Connect, Inc. (STCN)
$0.8137
+0.00 (+0.46%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 645.26 | 819.83 | 782.81 | 613.77 | 203.27 | 169.76 | 141.78 | 118.41 | 98.89 | 82.59 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 32.47 | 32.40 | 84.93 | 31.91 | 5.76 | 9.46 | 7.90 | 6.60 | 5.51 | 4.60 |
| EBITDA (%) | ||||||||||
| EBIT | -4.60 | -20.11 | 34.60 | -11.64 | 3.54 | 0.37 | 0.31 | 0.26 | 0.22 | 0.18 |
| EBIT (%) | ||||||||||
| Depreciation | 37.08 | 52.50 | 50.33 | 43.55 | 2.22 | 9.09 | 7.59 | 6.34 | 5.29 | 4.42 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Total Cash | 92.14 | 32.55 | 75.89 | 96.93 | 53.14 | 23.73 | 19.82 | 16.55 | 13.82 | 11.54 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 99.25 | 112.14 | 93.07 | 69.81 | 40.08 | 24.46 | 20.43 | 17.06 | 14.25 | 11.90 |
| Account Receivables (%) | ||||||||||
| Inventories | 47.79 | 23.67 | 15.35 | 16.23 | 8.15 | 6.42 | 5.36 | 4.48 | 3.74 | 3.12 |
| Inventories (%) | ||||||||||
| Accounts Payable | 78.21 | 85.90 | 70 | 55.52 | 30.55 | 18.88 | 15.77 | 13.17 | 11 | 9.19 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -18.42 | -14.54 | -12.07 | -3.62 | -1.48 | -2.54 | -2.12 | -1.77 | -1.48 | -1.24 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 0.8,137 |
|---|---|
| Beta | 0.303 |
| Diluted Shares Outstanding | 59.96 |
| Cost of Debt | |
| Tax Rate | 614.45 |
| After-tax Cost of Debt | -52.68% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.129 |
| Total Debt | 30.46 |
| Total Equity | 48.79 |
| Total Capital | 79.25 |
| Debt Weighting | 38.43 |
| Equity Weighting | 61.57 |
| Wacc |
Build Up Free Cash
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 645.26 | 819.83 | 782.81 | 613.77 | 203.27 | 169.76 | 141.78 | 118.41 | 98.89 | 82.59 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 32.47 | 32.40 | 84.93 | 31.91 | 5.76 | 9.46 | 7.90 | 6.60 | 5.51 | 4.60 |
| EBIT | -4.60 | -20.11 | 34.60 | -11.64 | 3.54 | 0.37 | 0.31 | 0.26 | 0.22 | 0.18 |
| Tax Rate | 204.04% | -7.45% | 934.76% | -3.77% | 614.45% | 348.41% | 348.41% | 348.41% | 348.41% | 348.41% |
| EBIAT | 4.79 | -21.60 | -288.84 | -12.08 | -18.21 | -0.93 | -0.77 | -0.65 | -0.54 | -0.45 |
| Depreciation | 37.08 | 52.50 | 50.33 | 43.55 | 2.22 | 9.09 | 7.59 | 6.34 | 5.29 | 4.42 |
| Accounts Receivable | - | -12.89 | 19.07 | 23.27 | 29.72 | 15.62 | 4.03 | 3.37 | 2.81 | 2.35 |
| Inventories | - | 24.11 | 8.32 | -0.87 | 8.08 | 1.73 | 1.06 | 0.88 | 0.74 | 0.62 |
| Accounts Payable | - | 7.69 | -15.90 | -14.48 | -24.96 | -11.67 | -3.11 | -2.60 | -2.17 | -1.81 |
| Capital Expenditure | -18.42 | -14.54 | -12.07 | -3.62 | -1.49 | -2.54 | -2.12 | -1.77 | -1.48 | -1.24 |
| UFCF | 23.44 | 35.27 | -239.09 | 35.76 | -4.64 | 11.30 | 6.67 | 5.57 | 4.65 | 3.89 |
| WACC | ||||||||||
| PV UFCF | 13.63 | 9.70 | 9.77 | 9.84 | 9.92 | |||||
| SUM PV UFCF | 52.87 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | -17.09 |
| Free cash flow (t + 1) | 3.96 |
| Terminal Value | -20.76 |
| Present Value of Terminal Value | -52.99 |
Intrinsic Value
| Enterprise Value | -0.12 |
|---|---|
| Net Debt | -22.68 |
| Equity Value | 22.57 |
| Shares Outstanding | 59.96 |
| Equity Value Per Share | 0.38 |