logo
Positive Report for Amcor PLC Shs Chess Depository Interests (AMC) from Morgans

Positive Report for Amcor PLC Shs Chess Depository Interests (AMC) from Morgans

Amcor PLC Shs Chess Depository Interests (AMC – Research Report) received a Buy rating and a A$16.00 price target from Morgans analyst Alexander Lu today. The company's shares closed last Friday at A$14.17.
Protect Your Portfolio Against Market Uncertainty
Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter.
Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox.
According to TipRanks, Lu is a 4-star analyst with an average return of 6.7% and a 43.42% success rate. Lu covers the Industrials sector, focusing on stocks such as Brambles , Reliance Worldwide Corp., and Reece Limited.
In addition to Morgans, Amcor PLC Shs Chess Depository Interests also received a Buy from Citi's Anthony Pettinari in a report issued on May 2. However, on April 29, UBS maintained a Hold rating on Amcor PLC Shs Chess Depository Interests (ASX: AMC).
The company has a one-year high of A$16.96 and a one-year low of A$14.02. Currently, Amcor PLC Shs Chess Depository Interests has an average volume of 3.99M.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

We Think INOVIQ (ASX:IIQ) Can Afford To Drive Business Growth
We Think INOVIQ (ASX:IIQ) Can Afford To Drive Business Growth

Yahoo

time4 hours ago

  • Yahoo

We Think INOVIQ (ASX:IIQ) Can Afford To Drive Business Growth

We can readily understand why investors are attracted to unprofitable companies. For example, although made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. But the harsh reality is that very many loss making companies burn through all their cash and go bankrupt. So should INOVIQ (ASX:IIQ) shareholders be worried about its cash burn? For the purposes of this article, cash burn is the annual rate at which an unprofitable company spends cash to fund its growth; its negative free cash flow. Let's start with an examination of the business' cash, relative to its cash burn. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. How Long Is INOVIQ's Cash Runway? You can calculate a company's cash runway by dividing the amount of cash it has by the rate at which it is spending that cash. As at December 2024, INOVIQ had cash of AU$9.5m and no debt. Looking at the last year, the company burnt through AU$4.7m. That means it had a cash runway of about 2.0 years as of December 2024. Arguably, that's a prudent and sensible length of runway to have. You can see how its cash balance has changed over time in the image below. View our latest analysis for INOVIQ How Well Is INOVIQ Growing? On balance, we think it's mildly positive that INOVIQ trimmed its cash burn by 17% over the last twelve months. But the revenue dip of 17% in the same period was a bit concerning. In light of the data above, we're fairly sanguine about the business growth trajectory. Clearly, however, the crucial factor is whether the company will grow its business going forward. So you might want to take a peek at how much the company is expected to grow in the next few years. How Easily Can INOVIQ Raise Cash? Even though it seems like INOVIQ is developing its business nicely, we still like to consider how easily it could raise more money to accelerate growth. Companies can raise capital through either debt or equity. Many companies end up issuing new shares to fund future growth. By looking at a company's cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year's cash burn. Since it has a market capitalisation of AU$44m, INOVIQ's AU$4.7m in cash burn equates to about 11% of its market value. As a result, we'd venture that the company could raise more cash for growth without much trouble, albeit at the cost of some dilution. So, Should We Worry About INOVIQ's Cash Burn? Even though its falling revenue makes us a little nervous, we are compelled to mention that we thought INOVIQ's cash runway was relatively promising. While we're the kind of investors who are always a bit concerned about the risks involved with cash burning companies, the metrics we have discussed in this article leave us relatively comfortable about INOVIQ's situation. Taking a deeper dive, we've spotted 5 warning signs for INOVIQ you should be aware of, and 1 of them makes us a bit uncomfortable. Of course INOVIQ may not be the best stock to buy. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

We Think INOVIQ (ASX:IIQ) Can Afford To Drive Business Growth
We Think INOVIQ (ASX:IIQ) Can Afford To Drive Business Growth

Yahoo

time4 hours ago

  • Yahoo

We Think INOVIQ (ASX:IIQ) Can Afford To Drive Business Growth

We can readily understand why investors are attracted to unprofitable companies. For example, although made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. But the harsh reality is that very many loss making companies burn through all their cash and go bankrupt. So should INOVIQ (ASX:IIQ) shareholders be worried about its cash burn? For the purposes of this article, cash burn is the annual rate at which an unprofitable company spends cash to fund its growth; its negative free cash flow. Let's start with an examination of the business' cash, relative to its cash burn. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. How Long Is INOVIQ's Cash Runway? You can calculate a company's cash runway by dividing the amount of cash it has by the rate at which it is spending that cash. As at December 2024, INOVIQ had cash of AU$9.5m and no debt. Looking at the last year, the company burnt through AU$4.7m. That means it had a cash runway of about 2.0 years as of December 2024. Arguably, that's a prudent and sensible length of runway to have. You can see how its cash balance has changed over time in the image below. View our latest analysis for INOVIQ How Well Is INOVIQ Growing? On balance, we think it's mildly positive that INOVIQ trimmed its cash burn by 17% over the last twelve months. But the revenue dip of 17% in the same period was a bit concerning. In light of the data above, we're fairly sanguine about the business growth trajectory. Clearly, however, the crucial factor is whether the company will grow its business going forward. So you might want to take a peek at how much the company is expected to grow in the next few years. How Easily Can INOVIQ Raise Cash? Even though it seems like INOVIQ is developing its business nicely, we still like to consider how easily it could raise more money to accelerate growth. Companies can raise capital through either debt or equity. Many companies end up issuing new shares to fund future growth. By looking at a company's cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year's cash burn. Since it has a market capitalisation of AU$44m, INOVIQ's AU$4.7m in cash burn equates to about 11% of its market value. As a result, we'd venture that the company could raise more cash for growth without much trouble, albeit at the cost of some dilution. So, Should We Worry About INOVIQ's Cash Burn? Even though its falling revenue makes us a little nervous, we are compelled to mention that we thought INOVIQ's cash runway was relatively promising. While we're the kind of investors who are always a bit concerned about the risks involved with cash burning companies, the metrics we have discussed in this article leave us relatively comfortable about INOVIQ's situation. Taking a deeper dive, we've spotted 5 warning signs for INOVIQ you should be aware of, and 1 of them makes us a bit uncomfortable. Of course INOVIQ may not be the best stock to buy. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

A Look At The Intrinsic Value Of GrainCorp Limited (ASX:GNC)
A Look At The Intrinsic Value Of GrainCorp Limited (ASX:GNC)

Yahoo

time4 hours ago

  • Yahoo

A Look At The Intrinsic Value Of GrainCorp Limited (ASX:GNC)

Key Insights The projected fair value for GrainCorp is AU$8.73 based on 2 Stage Free Cash Flow to Equity With AU$7.48 share price, GrainCorp appears to be trading close to its estimated fair value Analyst price target for GNC is AU$8.83, which is 1.1% above our fair value estimate In this article we are going to estimate the intrinsic value of GrainCorp Limited (ASX:GNC) by taking the forecast future cash flows of the company and discounting them back to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. Don't get put off by the jargon, the math behind it is actually quite straightforward. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The Method We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF (A$, Millions) AU$123.2m AU$111.1m AU$107.0m AU$114.0m AU$112.8m AU$113.0m AU$114.1m AU$115.9m AU$118.2m AU$120.9m Growth Rate Estimate Source Analyst x2 Analyst x3 Analyst x1 Analyst x1 Est @ -1.06% Est @ 0.15% Est @ 0.99% Est @ 1.58% Est @ 1.99% Est @ 2.28% Present Value (A$, Millions) Discounted @ 8.0% AU$114 AU$95.2 AU$84.9 AU$83.7 AU$76.7 AU$71.1 AU$66.5 AU$62.5 AU$59.0 AU$55.9 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = AU$770m After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 8.0%. Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = AU$121m× (1 + 2.9%) ÷ (8.0%– 2.9%) = AU$2.5b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= AU$2.5b÷ ( 1 + 8.0%)10= AU$1.1b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is AU$1.9b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of AU$7.5, the company appears about fair value at a 14% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. The Assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at GrainCorp as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.0%, which is based on a levered beta of 1.171. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for GrainCorp SWOT Analysis for GrainCorp Strength Debt is well covered by earnings. Dividend is in the top 25% of dividend payers in the market. Weakness Earnings declined over the past year. Opportunity Annual earnings are forecast to grow faster than the Australian market. Current share price is below our estimate of fair value. Threat Debt is not well covered by operating cash flow. Dividends are not covered by cash flow. Annual revenue is expected to decline over the next 3 years. Moving On: Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For GrainCorp, we've put together three pertinent elements you should assess: Risks: You should be aware of the 4 warning signs for GrainCorp (1 doesn't sit too well with us!) we've uncovered before considering an investment in the company. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for GNC's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every Australian stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store