DCF Tool

HLIO

Helios Technologies Inc – Fluid Power Valve and Hose Fitting Manufacturing
Helios Technologies is a global leader in highly engineered motion control and electronic controls technology for diverse end markets, including construction, material handling, agriculture, energy, recreational vehicles, marine, health and wellness. Helios sells its products to customers in over 85 countries around the world. Its strategy for growth is to be the leading provider in niche markets, with premier products and solutions through innovative product development and acquisition. The company has paid a cash dividend to its shareholders every quarter since becoming a public company in 1997.
Analysis Results
Intrinsic Value $286.35
Latest Price $65.98
Relative Value 77% 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 32.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 32.4%, 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)
2022 248 229
2023 328 279
2024 435 341
2025 576 417
2026 762 510
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 12200 million. This corresponds to a present value of 7530 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 9300 million.

There are presently 32.5 million outstanding shares, so the intrinsic value per share is 286.35.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 351,634,000
Current Cash 28,540,000
Current Liabilities 169,520,000
Current Debt 18,125,000
Non-Cash Working Capital (NCWC) 171,699,000
Change in NCWC 54,679,000
EBIT 149,309,000
Tax Provision 26,583,000
Depreciation and Amortization 54,401,000
Capital Expenditure -29,293,000
Unlevered Free Cash Flow 198,839,014
Current Assets 254,019,000
Current Cash 25,216,000
Current Liabilities 128,012,000
Current Debt 16,229,000
Non-Cash Working Capital (NCWC) 117,020,000
Change in NCWC 15,384,000
EBIT 67,283,000
Tax Provision 9,829,000
Depreciation and Amortization 39,695,000
Capital Expenditure -14,580,000
Unlevered Free Cash Flow 80,280,664
Current Assets 192,589,000
Current Cash 22,123,000
Current Liabilities 76,453,000
Current Debt 7,623,000
Non-Cash Working Capital (NCWC) 101,636,000
Change in NCWC 16,032,000
EBIT 94,552,000
Tax Provision 15,039,000
Depreciation and Amortization 35,215,000
Capital Expenditure -25,025,000
Unlevered Free Cash Flow 101,891,724
Current Assets 196,856,000
Current Cash 23,477,000
Current Liabilities 92,990,000
Current Debt 5,215,000
Non-Cash Working Capital (NCWC) 85,604,000
Change in NCWC 48,573,000
EBIT 75,554,000
Tax Provision 9,665,000
Depreciation and Amortization 39,714,000
Capital Expenditure -28,380,000
Unlevered Free Cash Flow 122,512,522
Current Assets 146,776,000
Current Cash 63,882,000
Current Liabilities 45,863,000
Current Debt 0
Non-Cash Working Capital (NCWC) 37,031,000
Change in NCWC 7,885,000
EBIT 62,522,000
Tax Provision 15,986,000
Depreciation and Amortization 19,190,000
Capital Expenditure -22,205,000
Unlevered Free Cash Flow 46,369,858
Current Assets 141,268,000
Current Cash 81,046,000
Current Liabilities 31,076,000
Current Debt 0
Non-Cash Working Capital (NCWC) 29,146,000
Change in NCWC 9,916,000
EBIT 34,459,000
Tax Provision 11,597,000
Depreciation and Amortization 11,318,000
Capital Expenditure -7,414,000
Unlevered Free Cash Flow 36,828,868
Current Assets 157,018,000
Current Cash 126,106,000
Current Liabilities 11,682,000
Current Debt 0
Non-Cash Working Capital (NCWC) 19,230,000
Change in NCWC -389,000
EBIT 46,891,000
Tax Provision 16,092,000
Depreciation and Amortization 9,557,000
Capital Expenditure -7,531,000
Unlevered Free Cash Flow 33,200,557
Current Assets 135,547,000
Current Cash 100,196,000
Current Liabilities 15,732,000
Current Debt 0
Non-Cash Working Capital (NCWC) 19,619,000
Change in NCWC -1,778,000
EBIT 64,071,000
Tax Provision 21,967,000
Depreciation and Amortization 8,718,000
Capital Expenditure -11,742,000
Unlevered Free Cash Flow 37,860,347
Current Assets 129,056,000
Current Cash 93,641,000
Current Liabilities 14,018,000
Current Debt 0
Non-Cash Working Capital (NCWC) 21,397,000
Change in NCWC 3,377,000
EBIT 56,171,000
Tax Provision 19,188,000
Depreciation and Amortization 7,227,000
Capital Expenditure -17,935,000
Unlevered Free Cash Flow 29,987,954
Current Assets 102,445,000
Current Cash 72,178,000
Current Liabilities 12,247,000
Current Debt 0
Non-Cash Working Capital (NCWC) 18,020,000
Change in NCWC 1,370,000
EBIT 54,409,000
Tax Provision 18,455,000
Depreciation and Amortization 7,186,000
Capital Expenditure -13,359,000
Unlevered Free Cash Flow 31,628,127

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