DCF Tool

KAMN

Kaman Corp. – Other Aircraft Parts and Auxiliary Equipment Manufacturing
kaman aerospace is a segment of kaman corporation (nyse:kamn), with 17 locations worldwide, which was founded in 1945 by aviation pioneer charles h. kaman. headquartered in bloomfield, connecticut, kaman corporation conducts business in the aerospace and distribution markets. the company produces and/or markets widely used proprietary aircraft bearings and components; super precision, miniature ball bearings; complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft; aerostructure engineering design analysis and faa certification services; safe and arm solutions for missile and bomb systems for missile and bomb systems for the u.s. and allied militaries; subcontract helicopter work; production of the k-max medium-to-heavy lift helicopter and support for the company's sh-2g super seasprite maritime aircraft. more information is available at www.kaman.com/aerospace.
Analysis Results
Intrinsic Value $45.97
Latest Price $20.70
Relative Value 55% 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 -4.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -4.6%, 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 53.7 51.8
2024 51.2 47.7
2025 48.9 43.9
2026 46.7 40.4
2027 44.5 37.2
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 1340 million. This corresponds to a present value of 1080 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 221 million. Adding in the terminal value gives a total present value of 1300 million.

There are presently 28.3 million outstanding shares, so the intrinsic value per share is 45.97.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 431,558,000
Current Cash 24,154,000
Current Liabilities 126,575,000
Current Debt 0
Non-Cash Working Capital (NCWC) 280,829,000
Change in NCWC -3,979,000
EBIT 22,161,000
Tax Provision -16,732,000
Depreciation and Amortization 40,712,000
Capital Expenditure -23,689,000
Unlevered Free Cash Flow 35,205,000
Current Assets 546,543,000
Current Cash 140,800,000
Current Liabilities 120,935,000
Current Debt 0
Non-Cash Working Capital (NCWC) 284,808,000
Change in NCWC 19,623,000
EBIT 57,604,000
Tax Provision 16,832,000
Depreciation and Amortization 36,654,000
Capital Expenditure -17,530,000
Unlevered Free Cash Flow 80,326,829
Current Assets 597,974,000
Current Cash 104,377,000
Current Liabilities 228,412,000
Current Debt 0
Non-Cash Working Capital (NCWC) 265,185,000
Change in NCWC 4,229,000
EBIT 22,862,000
Tax Provision -7,730,000
Depreciation and Amortization 43,899,000
Capital Expenditure -17,783,000
Unlevered Free Cash Flow 53,207,000
Current Assets 936,488,000
Current Cash 471,540,000
Current Liabilities 203,992,000
Current Debt 0
Non-Cash Working Capital (NCWC) 260,956,000
Change in NCWC -195,337,000
EBIT 63,618,000
Tax Provision -15,859,000
Depreciation and Amortization 25,854,000
Capital Expenditure -22,447,000
Unlevered Free Cash Flow -128,312,000
Current Assets 773,105,000
Current Cash 27,711,000
Current Liabilities 298,476,000
Current Debt 9,375,000
Non-Cash Working Capital (NCWC) 456,293,000
Change in NCWC -15,873,000
EBIT 105,133,000
Tax Provision 21,068,000
Depreciation and Amortization 42,029,000
Capital Expenditure -29,871,000
Unlevered Free Cash Flow 71,978,468
Current Assets 747,869,000
Current Cash 36,904,000
Current Liabilities 246,299,000
Current Debt 7,500,000
Non-Cash Working Capital (NCWC) 472,166,000
Change in NCWC 49,156,000
EBIT 116,580,000
Tax Provision 44,552,000
Depreciation and Amortization 42,471,000
Capital Expenditure -27,631,000
Unlevered Free Cash Flow 125,543,342
Current Assets 698,553,000
Current Cash 41,205,000
Current Liabilities 353,886,000
Current Debt 119,548,000
Non-Cash Working Capital (NCWC) 423,010,000
Change in NCWC -8,874,000
EBIT 105,934,000
Tax Provision 30,850,000
Depreciation and Amortization 44,929,000
Capital Expenditure -29,777,000
Unlevered Free Cash Flow 75,780,359
Current Assets 676,035,000
Current Cash 16,462,000
Current Liabilities 236,689,000
Current Debt 9,000,000
Non-Cash Working Capital (NCWC) 431,884,000
Change in NCWC -13,537,000
EBIT 104,191,000
Tax Provision 27,551,000
Depreciation and Amortization 37,729,000
Capital Expenditure -29,932,000
Unlevered Free Cash Flow 65,826,851
Current Assets 662,256,000
Current Cash 12,411,000
Current Liabilities 221,724,000
Current Debt 17,300,000
Non-Cash Working Capital (NCWC) 445,421,000
Change in NCWC 2,797,000
EBIT 110,740,000
Tax Provision 30,722,000
Depreciation and Amortization 36,209,000
Capital Expenditure -28,283,000
Unlevered Free Cash Flow 86,208,245
Current Assets 665,205,000
Current Cash 10,384,000
Current Liabilities 227,956,000
Current Debt 15,759,000
Non-Cash Working Capital (NCWC) 442,624,000
Change in NCWC 40,003,000
EBIT 102,679,000
Tax Provision 30,797,000
Depreciation and Amortization 31,875,000
Capital Expenditure -40,928,000
Unlevered Free Cash Flow 97,487,860
Current Assets 618,045,000
Current Cash 16,593,000
Current Liabilities 223,952,000
Current Debt 25,121,000
Non-Cash Working Capital (NCWC) 402,621,000
Change in NCWC 11,717,000
EBIT 92,943,000
Tax Provision 26,900,000
Depreciation and Amortization 28,383,000
Capital Expenditure -32,569,000
Unlevered Free Cash Flow 69,542,061

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