DCF Tool

DLA

Delta Apparel Inc. – Apparel Accessories and Other Apparel Manufacturing
Delta Apparel, Inc., along with its operating subsidiaries, Salt Life, LLC, M. J. Soffe, LLC, and DTG2Go, LLC, is an international design, marketing, manufacturing, and sourcing company that features a diverse portfolio of core activewear and lifestyle apparel and related accessory products. The Company specializes in selling casual and athletic products through a variety of distribution channels and distribution tiers, including department stores, mid and mass channels, e-retailers, sporting goods and outdoor retailers, independent and specialty stores, and the U.S. military. The Company's products are also available direct-to-consumer at its branded retail stores and on its websites at www.saltlife.com, www.coastapparel.com, www.soffe.com and www.deltaapparel.com. The Company's operations are located throughout the United States, Honduras, El Salvador, and Mexico, and it employs approximately 8,300 people worldwide.
Analysis Results
Intrinsic Value $3,147.75
Latest Price $11.68
Relative Value 100% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 60.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 60.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 134 128
2024 216 196
2025 348 299
2026 559 458
2027 900 700
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 27000 million. This corresponds to a present value of 20000 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1780 million. Adding in the terminal value gives a total present value of 21800 million.

There are presently 6.92 million outstanding shares, so the intrinsic value per share is 3147.75.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 323,179,000
Current Cash 300,000
Current Liabilities 137,561,000
Current Debt 17,339,000
Non-Cash Working Capital (NCWC) 202,657,000
Change in NCWC 60,843,000
EBIT 29,388,000
Tax Provision 4,307,000
Depreciation and Amortization 15,032,000
Capital Expenditure -12,509,000
Unlevered Free Cash Flow 87,490,824
Current Assets 242,963,000
Current Cash 9,376,000
Current Liabilities 105,461,000
Current Debt 13,688,000
Non-Cash Working Capital (NCWC) 141,814,000
Change in NCWC 13,016,000
EBIT 31,137,000
Tax Provision 5,705,000
Depreciation and Amortization 13,754,000
Capital Expenditure -12,153,000
Unlevered Free Cash Flow 38,886,694
Current Assets 226,768,000
Current Cash 16,458,000
Current Liabilities 96,027,000
Current Debt 14,515,000
Non-Cash Working Capital (NCWC) 128,798,000
Change in NCWC -38,294,000
EBIT -8,000
Tax Provision -3,260,000
Depreciation and Amortization 12,756,000
Capital Expenditure -8,990,000
Unlevered Free Cash Flow -34,536,000
Current Assets 243,598,000
Current Cash 605,000
Current Liabilities 88,875,000
Current Debt 12,974,000
Non-Cash Working Capital (NCWC) 167,092,000
Change in NCWC 7,518,000
EBIT 14,932,000
Tax Provision 477,000
Depreciation and Amortization 11,764,000
Capital Expenditure -6,063,000
Unlevered Free Cash Flow 27,297,487
Current Assets 225,422,000
Current Cash 460,000
Current Liabilities 75,811,000
Current Debt 10,423,000
Non-Cash Working Capital (NCWC) 159,574,000
Change in NCWC -2,661,000
EBIT 15,052,000
Tax Provision 10,460,000
Depreciation and Amortization 9,989,000
Capital Expenditure -6,269,000
Unlevered Free Cash Flow 2,642,743
Current Assets 227,694,000
Current Cash 572,000
Current Liabilities 72,435,000
Current Debt 7,548,000
Non-Cash Working Capital (NCWC) 162,235,000
Change in NCWC 3,249,000
EBIT 13,314,000
Tax Provision 657,000
Depreciation and Amortization 9,609,000
Capital Expenditure -7,085,000
Unlevered Free Cash Flow 18,303,753
Current Assets 232,484,000
Current Cash 397,000
Current Liabilities 82,293,000
Current Debt 9,192,000
Non-Cash Working Capital (NCWC) 158,986,000
Change in NCWC 10,545,000
EBIT 16,921,000
Tax Provision 2,081,000
Depreciation and Amortization 9,625,000
Capital Expenditure -12,315,000
Unlevered Free Cash Flow 21,587,896
Current Assets 222,838,000
Current Cash 300,000
Current Liabilities 82,437,000
Current Debt 8,340,000
Non-Cash Working Capital (NCWC) 148,441,000
Change in NCWC -22,709,000
EBIT 7,233,000
Tax Provision 2,005,000
Depreciation and Amortization 9,542,000
Capital Expenditure -7,773,000
Unlevered Free Cash Flow -15,143,142
Current Assets 249,648,000
Current Cash 612,000
Current Liabilities 93,390,000
Current Debt 15,504,000
Non-Cash Working Capital (NCWC) 171,150,000
Change in NCWC -5,216,000
EBIT -534,000
Tax Provision -6,493,000
Depreciation and Amortization 9,493,000
Capital Expenditure -8,894,000
Unlevered Free Cash Flow -5,151,000
Current Assets 245,862,000
Current Cash 598,000
Current Liabilities 72,427,000
Current Debt 3,529,000
Non-Cash Working Capital (NCWC) 176,366,000
Change in NCWC -13,725,000
EBIT 14,565,000
Tax Provision 722,000
Depreciation and Amortization 8,014,000
Capital Expenditure -7,922,000
Unlevered Free Cash Flow -129,571

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