DCF Tool

HSKA

Heska Corp. – Biological Product (except Diagnostic) Manufacturing
Heska Corporation manufactures, develops and sells advanced veterinary diagnostic and specialty healthcare products through its two business segments: North America and International. Both segments include Point of Care Lab testing instruments and consumables, digital imaging products, software and services, data services, allergy testing and immunotherapy, and single-use offerings such as in-clinic diagnostic tests and heartworm preventive products. The North America segment also includes private label vaccine and pharmaceutical production under third-party agreements and channels, primarily for herd animal health.
Analysis Results
Intrinsic Value $54.58
Latest Price $66.37
Relative Value 22% overvalued
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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 19.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.2%, 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 24.6 22.6
2023 29.3 24.8
2024 34.9 27.2
2025 41.6 29.8
2026 49.6 32.6
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 750 million. This corresponds to a present value of 454 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 137 million. Adding in the terminal value gives a total present value of 591 million.

There are presently 10.8 million outstanding shares, so the intrinsic value per share is 54.58.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 319,555,000
Current Cash 223,574,000
Current Liabilities 43,926,000
Current Debt 0
Non-Cash Working Capital (NCWC) 52,055,000
Change in NCWC 9,229,000
EBIT -2,273,000
Tax Provision -3,573,000
Depreciation and Amortization 13,555,000
Capital Expenditure -1,768,000
Unlevered Free Cash Flow 18,743,000
Current Assets 171,275,000
Current Cash 86,334,000
Current Liabilities 42,115,000
Current Debt 0
Non-Cash Working Capital (NCWC) 42,826,000
Change in NCWC 24,188,000
EBIT -8,912,000
Tax Provision 239,000
Depreciation and Amortization 11,385,000
Capital Expenditure -686,000
Unlevered Free Cash Flow 25,975,000
Current Assets 139,867,000
Current Cash 89,030,000
Current Liabilities 32,199,000
Current Debt 0
Non-Cash Working Capital (NCWC) 18,638,000
Change in NCWC -10,017,000
EBIT -267,000
Tax Provision -1,446,000
Depreciation and Amortization 4,916,000
Capital Expenditure -1,044,000
Unlevered Free Cash Flow -6,412,000
Current Assets 62,407,000
Current Cash 13,389,000
Current Liabilities 20,363,000
Current Debt 0
Non-Cash Working Capital (NCWC) 28,655,000
Change in NCWC -4,872,000
EBIT 3,722,000
Tax Provision -2,115,000
Depreciation and Amortization 4,595,000
Capital Expenditure -1,358,000
Unlevered Free Cash Flow 2,087,000
Current Assets 62,912,000
Current Cash 9,659,000
Current Liabilities 25,726,000
Current Debt 6,000,000
Non-Cash Working Capital (NCWC) 33,527,000
Change in NCWC 20,712,000
EBIT 18,219,000
Tax Provision 8,913,000
Depreciation and Amortization 4,754,000
Capital Expenditure -3,469,000
Unlevered Free Cash Flow 31,375,782
Current Assets 55,273,000
Current Cash 10,794,000
Current Liabilities 32,414,000
Current Debt 750,000
Non-Cash Working Capital (NCWC) 12,815,000
Change in NCWC -3,056,000
EBIT 16,533,000
Tax Provision 4,339,000
Depreciation and Amortization 4,645,000
Capital Expenditure -3,417,000
Unlevered Free Cash Flow 10,358,375
Current Assets 41,262,000
Current Cash 6,890,000
Current Liabilities 18,803,000
Current Debt 302,000
Non-Cash Working Capital (NCWC) 15,871,000
Change in NCWC 2,189,000
EBIT 8,557,000
Tax Provision 2,908,000
Depreciation and Amortization 4,187,000
Capital Expenditure -3,773,000
Unlevered Free Cash Flow 8,207,139
Current Assets 34,400,000
Current Cash 5,855,000
Current Liabilities 15,052,000
Current Debt 189,000
Non-Cash Working Capital (NCWC) 13,682,000
Change in NCWC -1,437,000
EBIT 2,911,000
Tax Provision 1,351,000
Depreciation and Amortization 3,712,000
Capital Expenditure -2,337,000
Unlevered Free Cash Flow 1,515,860
Current Assets 33,911,000
Current Cash 6,016,000
Current Liabilities 17,706,000
Current Debt 4,930,000
Non-Cash Working Capital (NCWC) 15,119,000
Change in NCWC -215,000
EBIT -1,430,000
Tax Provision -454,000
Depreciation and Amortization 2,497,000
Capital Expenditure -1,930,000
Unlevered Free Cash Flow -1,078,000
Current Assets 32,955,000
Current Cash 5,784,000
Current Liabilities 14,389,000
Current Debt 2,552,000
Non-Cash Working Capital (NCWC) 15,334,000
Change in NCWC 2,064,000
EBIT 2,158,000
Tax Provision 820,000
Depreciation and Amortization 1,699,000
Capital Expenditure -1,509,000
Unlevered Free Cash Flow 3,537,279

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