Discounted Cash Flow (DCF) Analysis Unlevered

TrueBlue, Inc. (TBI)

$19.09

-0.30 (-1.55%)

All numbers are in Millions, Currency in USD

Stock DCF: 8.99 | 19.09 | overvalue

Operating Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	2,508.77	2,499.21	2,368.78	1,846.36	2,173.62	2,119.66	2,067.04	2,015.73	1,965.69	1,916.90
Revenue (%)
EBITDA	129.16	121.59	110.38	-139.61	106.81	50.98	49.72	48.48	47.28	46.10
EBITDA (%)
EBIT	83.04	80.54	72.83	-171.64	79.26	16.78	16.36	15.95	15.56	15.17
EBIT (%)
Depreciation	46.11	41.05	37.55	32.03	27.56	34.20	33.36	32.53	31.72	30.93
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	28.78	46.99	37.61	62.51	49.90	43.65	42.56	41.51	40.48	39.47
Total Cash (%)
Account Receivables	378.89	360.70	353.41	290.24	363.56	326.01	317.91	310.02	302.33	294.82
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	55.09	69.81	68.41	62.20	77.17	62.73	61.17	59.65	58.17	56.73
Accounts Payable (%)
Capital Expenditure	-21.96	-17.05	-28.12	-27.07	-35.01	-24.68	-24.06	-23.47	-22.88	-22.32
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 19.09
Beta	1.465
Diluted Shares Outstanding	35.43
Cost of Debt
Tax Rate	16.54
After-tax Cost of Debt	6.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.434
Total Debt	67.02
Total Equity	676.44
Total Capital	743.46
Debt Weighting	9.02
Equity Weighting	90.98
Wacc

Build Up Free Cash

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	2,508.77	2,499.21	2,368.78	1,846.36	2,173.62	2,119.66	2,067.04	2,015.73	1,965.69	1,916.90
EBITDA	129.16	121.59	110.38	-139.61	106.81	50.98	49.72	48.48	47.28	46.10
EBIT	83.04	80.54	72.83	-171.64	79.26	16.78	16.36	15.95	15.56	15.17
Tax Rate	28.49%	13.10%	9.95%	18.13%	16.54%	17.24%	17.24%	17.24%	17.24%	17.24%
EBIAT	59.38	70	65.58	-140.51	66.15	13.88	13.54	13.20	12.88	12.56
Depreciation	46.11	41.05	37.55	32.03	27.56	34.20	33.36	32.53	31.72	30.93
Accounts Receivable	-	18.20	7.29	63.17	-73.32	37.56	8.09	7.89	7.70	7.50
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	14.72	-1.41	-6.21	14.97	-14.45	-1.56	-1.52	-1.48	-1.44
Capital Expenditure	-21.96	-17.05	-28.12	-27.07	-35.01	-24.68	-24.06	-23.47	-22.88	-22.32
UFCF	83.54	126.91	80.89	-78.59	0.35	46.52	29.37	28.64	27.93	27.23
WACC
PV UFCF						42.25	24.23	21.46	19	16.83
SUM PV UFCF										123.77

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.10
Free cash flow (t + 1)	27.78
Terminal Value	342.93
Present Value of Terminal Value	211.97

Intrinsic Value

Enterprise Value	335.74
Net Debt	17.13
Equity Value	318.61
Shares Outstanding	35.43
Equity Value Per Share	8.99