Intrinsic value of FutureFuel - FF

Previous Close

$15.81

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$15.81

 
Intrinsic value

$475.04

 
Up/down potential

+999%

 
Rating

str. buy

 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of FF stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -15.67
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  253
  405
  625
  935
  1,357
  1,915
  2,632
  3,533
  4,639
  5,970
  7,540
  9,363
  11,447
  13,798
  16,417
  19,303
  22,454
  25,866
  29,531
  33,446
  37,603
  41,997
  46,625
  51,481
  56,565
  61,875
  67,412
  73,178
  79,177
  85,415
  91,898
Variable operating expenses, $m
 
  310
  480
  717
  1,041
  1,469
  2,019
  2,710
  3,558
  4,579
  5,783
  7,182
  8,780
  10,583
  12,592
  14,806
  17,222
  19,839
  22,650
  25,653
  28,841
  32,212
  35,761
  39,486
  43,385
  47,458
  51,705
  56,127
  60,729
  65,513
  70,486
Fixed operating expenses, $m
 
  25
  25
  26
  26
  27
  28
  29
  29
  30
  31
  31
  32
  33
  34
  35
  36
  37
  37
  38
  39
  40
  41
  42
  43
  44
  46
  47
  48
  49
  50
Total operating expenses, $m
  217
  335
  505
  743
  1,067
  1,496
  2,047
  2,739
  3,587
  4,609
  5,814
  7,213
  8,812
  10,616
  12,626
  14,841
  17,258
  19,876
  22,687
  25,691
  28,880
  32,252
  35,802
  39,528
  43,428
  47,502
  51,751
  56,174
  60,777
  65,562
  70,536
Operating income, $m
  37
  70
  121
  192
  290
  419
  585
  795
  1,052
  1,361
  1,726
  2,150
  2,635
  3,182
  3,791
  4,463
  5,196
  5,990
  6,843
  7,754
  8,722
  9,745
  10,822
  11,953
  13,136
  14,372
  15,661
  17,004
  18,400
  19,853
  21,362
EBITDA, $m
  48
  87
  148
  233
  349
  502
  700
  949
  1,254
  1,621
  2,055
  2,558
  3,134
  3,783
  4,507
  5,305
  6,175
  7,118
  8,131
  9,213
  10,362
  11,576
  12,855
  14,198
  15,603
  17,070
  18,601
  20,194
  21,853
  23,577
  25,369
Interest expense (income), $m
  0
  0
  4
  10
  19
  30
  45
  65
  89
  119
  155
  198
  247
  304
  367
  438
  517
  602
  695
  794
  900
  1,013
  1,132
  1,258
  1,390
  1,528
  1,672
  1,822
  1,978
  2,141
  2,310
Earnings before tax, $m
  41
  70
  116
  182
  271
  389
  540
  730
  963
  1,242
  1,571
  1,952
  2,388
  2,878
  3,424
  4,024
  4,679
  5,388
  6,149
  6,960
  7,822
  8,732
  9,690
  10,695
  11,747
  12,845
  13,990
  15,182
  16,422
  17,712
  19,052
Tax expense, $m
  -15
  19
  31
  49
  73
  105
  146
  197
  260
  335
  424
  527
  645
  777
  924
  1,087
  1,263
  1,455
  1,660
  1,879
  2,112
  2,358
  2,616
  2,888
  3,172
  3,468
  3,777
  4,099
  4,434
  4,782
  5,144
Net income, $m
  56
  51
  85
  133
  198
  284
  394
  533
  703
  907
  1,147
  1,425
  1,743
  2,101
  2,499
  2,938
  3,416
  3,933
  4,488
  5,081
  5,710
  6,374
  7,074
  7,807
  8,575
  9,377
  10,213
  11,083
  11,988
  12,930
  13,908

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  305
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  529
  359
  554
  828
  1,202
  1,696
  2,331
  3,129
  4,109
  5,288
  6,679
  8,293
  10,139
  12,221
  14,541
  17,098
  19,889
  22,910
  26,157
  29,624
  33,306
  37,199
  41,297
  45,599
  50,102
  54,805
  59,709
  64,816
  70,130
  75,655
  81,398
Adjusted assets (=assets-cash), $m
  224
  359
  554
  828
  1,202
  1,696
  2,331
  3,129
  4,109
  5,288
  6,679
  8,293
  10,139
  12,221
  14,541
  17,098
  19,889
  22,910
  26,157
  29,624
  33,306
  37,199
  41,297
  45,599
  50,102
  54,805
  59,709
  64,816
  70,130
  75,655
  81,398
Revenue / Adjusted assets
  1.129
  1.128
  1.128
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
  1.129
Average production assets, $m
  123
  196
  303
  453
  657
  927
  1,274
  1,710
  2,245
  2,889
  3,649
  4,532
  5,541
  6,678
  7,946
  9,343
  10,868
  12,519
  14,293
  16,188
  18,200
  20,327
  22,566
  24,917
  27,377
  29,947
  32,627
  35,418
  38,322
  41,341
  44,479
Working capital, $m
  261
  -70
  -109
  -163
  -236
  -333
  -458
  -615
  -807
  -1,039
  -1,312
  -1,629
  -1,992
  -2,401
  -2,857
  -3,359
  -3,907
  -4,501
  -5,138
  -5,820
  -6,543
  -7,308
  -8,113
  -8,958
  -9,842
  -10,766
  -11,730
  -12,733
  -13,777
  -14,862
  -15,990
Total debt, $m
  0
  118
  289
  529
  856
  1,288
  1,844
  2,542
  3,400
  4,431
  5,648
  7,061
  8,676
  10,498
  12,527
  14,764
  17,207
  19,850
  22,691
  25,725
  28,947
  32,353
  35,939
  39,703
  43,643
  47,758
  52,049
  56,518
  61,168
  66,002
  71,027
Total liabilities, $m
  196
  314
  485
  725
  1,052
  1,484
  2,040
  2,738
  3,596
  4,627
  5,844
  7,257
  8,872
  10,694
  12,723
  14,960
  17,403
  20,046
  22,887
  25,921
  29,143
  32,549
  36,135
  39,899
  43,839
  47,954
  52,245
  56,714
  61,364
  66,198
  71,223
Total equity, $m
  333
  45
  69
  104
  150
  212
  291
  391
  514
  661
  835
  1,037
  1,267
  1,528
  1,818
  2,137
  2,486
  2,864
  3,270
  3,703
  4,163
  4,650
  5,162
  5,700
  6,263
  6,851
  7,464
  8,102
  8,766
  9,457
  10,175
Total liabilities and equity, $m
  529
  359
  554
  829
  1,202
  1,696
  2,331
  3,129
  4,110
  5,288
  6,679
  8,294
  10,139
  12,222
  14,541
  17,097
  19,889
  22,910
  26,157
  29,624
  33,306
  37,199
  41,297
  45,599
  50,102
  54,805
  59,709
  64,816
  70,130
  75,655
  81,398
Debt-to-equity ratio
  0.000
  2.630
  4.170
  5.110
  5.700
  6.080
  6.330
  6.500
  6.620
  6.700
  6.770
  6.810
  6.850
  6.870
  6.890
  6.910
  6.920
  6.930
  6.940
  6.950
  6.950
  6.960
  6.960
  6.970
  6.970
  6.970
  6.970
  6.980
  6.980
  6.980
  6.980
Adjusted equity ratio
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125
  0.125

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  56
  51
  85
  133
  198
  284
  394
  533
  703
  907
  1,147
  1,425
  1,743
  2,101
  2,499
  2,938
  3,416
  3,933
  4,488
  5,081
  5,710
  6,374
  7,074
  7,807
  8,575
  9,377
  10,213
  11,083
  11,988
  12,930
  13,908
Depreciation, amort., depletion, $m
  11
  18
  27
  41
  59
  83
  115
  154
  202
  260
  329
  408
  499
  602
  716
  842
  979
  1,128
  1,288
  1,458
  1,640
  1,831
  2,033
  2,245
  2,466
  2,698
  2,939
  3,191
  3,452
  3,724
  4,007
Funds from operations, $m
  113
  69
  112
  174
  257
  367
  509
  687
  905
  1,167
  1,476
  1,834
  2,242
  2,703
  3,215
  3,780
  4,395
  5,061
  5,776
  6,539
  7,350
  8,206
  9,107
  10,052
  11,041
  12,075
  13,152
  14,274
  15,441
  16,654
  17,915
Change in working capital, $m
  22
  -26
  -38
  -54
  -73
  -97
  -125
  -157
  -192
  -231
  -273
  -317
  -363
  -409
  -456
  -502
  -548
  -594
  -638
  -681
  -723
  -765
  -805
  -845
  -885
  -924
  -963
  -1,003
  -1,044
  -1,085
  -1,128
Cash from operations, $m
  91
  92
  151
  228
  331
  464
  634
  844
  1,098
  1,398
  1,749
  2,151
  2,605
  3,112
  3,671
  4,282
  4,943
  5,655
  6,414
  7,220
  8,073
  8,970
  9,912
  10,897
  11,926
  12,999
  14,115
  15,277
  16,484
  17,739
  19,043
Maintenance CAPEX, $m
  0
  -11
  -18
  -27
  -41
  -59
  -83
  -115
  -154
  -202
  -260
  -329
  -408
  -499
  -602
  -716
  -842
  -979
  -1,128
  -1,288
  -1,458
  -1,640
  -1,831
  -2,033
  -2,245
  -2,466
  -2,698
  -2,939
  -3,191
  -3,452
  -3,724
New CAPEX, $m
  -5
  -73
  -107
  -150
  -204
  -270
  -347
  -436
  -535
  -644
  -760
  -882
  -1,009
  -1,138
  -1,268
  -1,397
  -1,525
  -1,651
  -1,774
  -1,895
  -2,012
  -2,127
  -2,240
  -2,351
  -2,460
  -2,570
  -2,680
  -2,791
  -2,904
  -3,019
  -3,138
Cash from investing activities, $m
  -35
  -84
  -125
  -177
  -245
  -329
  -430
  -551
  -689
  -846
  -1,020
  -1,211
  -1,417
  -1,637
  -1,870
  -2,113
  -2,367
  -2,630
  -2,902
  -3,183
  -3,470
  -3,767
  -4,071
  -4,384
  -4,705
  -5,036
  -5,378
  -5,730
  -6,095
  -6,471
  -6,862
Free cash flow, $m
  56
  8
  26
  50
  86
  135
  203
  293
  408
  552
  729
  940
  1,188
  1,475
  1,802
  2,169
  2,577
  3,024
  3,512
  4,038
  4,602
  5,204
  5,841
  6,514
  7,221
  7,962
  8,738
  9,547
  10,390
  11,268
  12,181
Issuance/(repayment) of debt, $m
  0
  118
  171
  240
  327
  432
  556
  698
  857
  1,031
  1,217
  1,413
  1,615
  1,822
  2,030
  2,237
  2,442
  2,644
  2,841
  3,034
  3,222
  3,406
  3,586
  3,764
  3,940
  4,115
  4,291
  4,469
  4,650
  4,834
  5,025
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -1
  118
  171
  240
  327
  432
  556
  698
  857
  1,031
  1,217
  1,413
  1,615
  1,822
  2,030
  2,237
  2,442
  2,644
  2,841
  3,034
  3,222
  3,406
  3,586
  3,764
  3,940
  4,115
  4,291
  4,469
  4,650
  4,834
  5,025
Total cash flow (excl. dividends), $m
  55
  126
  197
  290
  413
  568
  759
  991
  1,265
  1,583
  1,946
  2,353
  2,803
  3,297
  3,831
  4,406
  5,019
  5,668
  6,353
  7,072
  7,824
  8,610
  9,427
  10,277
  11,161
  12,077
  13,029
  14,016
  15,040
  16,102
  17,206
Retained Cash Flow (-), $m
  61
  -17
  -24
  -34
  -47
  -62
  -79
  -100
  -122
  -147
  -174
  -202
  -231
  -260
  -290
  -320
  -349
  -378
  -406
  -433
  -460
  -487
  -512
  -538
  -563
  -588
  -613
  -638
  -664
  -691
  -718
Prev. year cash balance distribution, $m
 
  305
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  414
  173
  256
  366
  506
  680
  892
  1,143
  1,436
  1,772
  2,151
  2,572
  3,036
  3,541
  4,086
  4,670
  5,291
  5,947
  6,639
  7,364
  8,123
  8,915
  9,740
  10,598
  11,490
  12,416
  13,377
  14,375
  15,412
  16,488
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  397
  158
  223
  301
  392
  494
  602
  714
  825
  929
  1,021
  1,098
  1,154
  1,189
  1,200
  1,187
  1,151
  1,095
  1,022
  936
  840
  740
  638
  540
  447
  362
  287
  222
  168
  124
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

FutureFuel Corp., through its subsidiaries, manufactures and sells diversified chemical products, bio-based products, and bio-based specialty chemical products in the United States and internationally. It operates in two segments, Chemicals and Biofuels. The Chemicals segment manufactures and sells custom chemicals, including agrochemicals and intermediates, detergent additives, biocides intermediates, specialty polymers, dyes, stabilizers, and chemicals intermediates; and chemicals used in consumer products consisting of cosmetics and personal care products, specialty polymers, and specialty products used in the fuels industry. This segment also offers performance chemicals, such as polymer modifiers that enhance stain resistance and dye-ability to nylon and polyester fibers; various small-volume specialty chemicals and solvents for a range of applications; and a family of acetal based solvents, including diethoxymethane, dimethoxymethane, dibutoxymethane, glycerol formal, and phenol sulfonic acid. Its chemical products are used in various markets and end uses comprising detergent, agrochemical, automotive, oil and gas, coatings, nutrition, and polymer additives. The Biofuels segment produces and sells biodiesel. It also sells petrodiesel in blends; and engages in buying, selling, and shipping refined petroleum products on common carrier pipelines. This segment markets its biodiesel products directly to customers through railcars, tank trucks, and barges in the United States. The company was formerly known as Viceroy Acquisition Corporation and changed its name to FutureFuel Corp. in October 2006. FutureFuel Corp. was incorporated in 2005 and is headquartered in Clayton, Missouri.

FINANCIAL RATIOS  of  FutureFuel (FF)

Valuation Ratios
P/E Ratio 12.4
Price to Sales 2.7
Price to Book 2.1
Price to Tangible Book
Price to Cash Flow 7.6
Price to Free Cash Flow 8
Growth Rates
Sales Growth Rate -15.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -28.6%
Cap. Spend. - 3 Yr. Gr. Rate -23.4%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 11%
Ret/ On Assets - 3 Yr. Avg. 10.9%
Return On Total Capital 15.4%
Ret/ On T. Cap. - 3 Yr. Avg. 14.3%
Return On Equity 15.4%
Return On Equity - 3 Yr. Avg. 14.3%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 18.6%
Gross Margin - 3 Yr. Avg. 19%
EBITDA Margin 20.6%
EBITDA Margin - 3 Yr. Avg. 21.1%
Operating Margin 14.2%
Oper. Margin - 3 Yr. Avg. 15.4%
Pre-Tax Margin 16.2%
Pre-Tax Margin - 3 Yr. Avg. 17.7%
Net Profit Margin 22.1%
Net Profit Margin - 3 Yr. Avg. 17.7%
Effective Tax Rate -36.6%
Eff/ Tax Rate - 3 Yr. Avg. -1.4%
Payout Ratio 17.9%

FF stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the FF stock intrinsic value calculation we used $253 million for the last fiscal year's total revenue generated by FutureFuel. The default revenue input number comes from 2016 income statement of FutureFuel. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our FF stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for FF is calculated based on our internal credit rating of FutureFuel, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of FutureFuel.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of FF stock the variable cost ratio is equal to 76.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $24 million in the base year in the intrinsic value calculation for FF stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for FutureFuel.

Corporate tax rate of 27% is the nominal tax rate for FutureFuel. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the FF stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for FF are equal to 48.4%.

Life of production assets of 11.1 years is the average useful life of capital assets used in FutureFuel operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for FF is equal to -17.4%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $333 million for FutureFuel - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 43.627 million for FutureFuel is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of FutureFuel at the current share price and the inputted number of shares is $0.7 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
REGI Renewable Ener 10.55 798.53  str.buy
ADM Archer Daniels 45.78 7.54  str.sell
GPRE Green Plains 23.80 12.28  str.sell
BIOA BioAmber 2.25 0.33  str.sell

COMPANY NEWS

▶ ETFs with exposure to FutureFuel Corp. : April 25, 2017   [Apr-25-17 03:33PM  Capital Cube]
▶ FutureFuel posts 4Q profit   [Mar-16-17 04:16PM  Associated Press]
▶ FutureFuel Releases 2016 Results   [04:01PM  GlobeNewswire]
▶ Is FutureFuel Corp. (FF) Worthy of Your Portfolio?   [Dec-10-16 03:36PM  at Insider Monkey]
▶ 2 chemical stocks to buy and 2 to sell   [Nov-27-16 08:04AM  at MarketWatch]
Stock chart of FF Financial statements of FF
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.