DCF Tool

KIRK

Kirkland`s Inc – All Other Home Furnishings Stores
Kirkland's, Inc. is a specialty retailer of home décor in the United States, currently operating 371 stores in 35 states as well as an e-commerce website, www.kirklands.com. The Company's stores present a curated selection of distinctive merchandise, including holiday décor, furniture, wall décor, art, textiles, mirrors, fragrances, lamps and other home decorating items. The Company's stores offer an extensive assortment of holiday merchandise during seasonal periods. The Company provides its customers an engaging shopping experience characterized by casual, comfortable merchandise with a southern feel and a modern flair at a discernible value. This combination of quality and stylish merchandise, value pricing and a stimulating online and store experience has led the Company to develop a loyal customer base.
Analysis Results
Intrinsic Value $20.46
Latest Price $6.37
Relative Value 69% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Millions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 11.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.3%, 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 21.0 18.7
2024 23.4 18.6
2025 26.0 18.5
2026 28.9 18.4
2027 32.2 18.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 330 million. This corresponds to a present value of 168 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 92.6 million. Adding in the terminal value gives a total present value of 260 million.

There are presently 12.7 million outstanding shares, so the intrinsic value per share is 20.46.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 149,569,000
Current Cash 25,003,000
Current Liabilities 134,614,000
Current Debt 0
Non-Cash Working Capital (NCWC) -10,048,000
Change in NCWC 57,191,000
EBIT 26,099,000
Tax Provision 3,343,000
Depreciation and Amortization 20,431,000
Capital Expenditure -7,128,000
Unlevered Free Cash Flow 93,153,804
Current Assets 170,698,000
Current Cash 100,337,000
Current Liabilities 137,600,000
Current Debt 0
Non-Cash Working Capital (NCWC) -67,239,000
Change in NCWC -27,178,000
EBIT 17,674,000
Tax Provision -8,547,000
Depreciation and Amortization 23,256,000
Capital Expenditure -8,698,000
Unlevered Free Cash Flow 5,054,000
Current Assets 131,511,000
Current Cash 30,132,000
Current Liabilities 141,440,000
Current Debt 0
Non-Cash Working Capital (NCWC) -40,061,000
Change in NCWC -53,520,000
EBIT -33,812,000
Tax Provision 678,000
Depreciation and Amortization 27,720,000
Capital Expenditure -15,680,000
Unlevered Free Cash Flow -75,292,000
Current Assets 157,941,000
Current Cash 57,946,000
Current Liabilities 86,536,000
Current Debt 0
Non-Cash Working Capital (NCWC) 13,459,000
Change in NCWC 13,156,000
EBIT 4,881,000
Tax Provision 2,031,000
Depreciation and Amortization 29,453,000
Capital Expenditure -28,775,000
Unlevered Free Cash Flow 17,009,043
Current Assets 177,399,000
Current Cash 80,156,000
Current Liabilities 96,940,000
Current Debt 0
Non-Cash Working Capital (NCWC) 303,000
Change in NCWC -14,359,000
EBIT 9,352,000
Tax Provision 4,520,000
Depreciation and Amortization 27,150,000
Capital Expenditure -28,424,000
Unlevered Free Cash Flow -10,587,340
Current Assets 153,040,000
Current Cash 63,937,000
Current Liabilities 74,441,000
Current Debt 0
Non-Cash Working Capital (NCWC) 14,662,000
Change in NCWC -12,600,000
EBIT 16,999,000
Tax Provision 5,929,000
Depreciation and Amortization 25,322,000
Capital Expenditure -32,180,000
Unlevered Free Cash Flow -8,396,382
Current Assets 131,109,000
Current Cash 44,352,000
Current Liabilities 59,495,000
Current Debt 0
Non-Cash Working Capital (NCWC) 27,262,000
Change in NCWC 16,451,000
EBIT 26,191,000
Tax Provision 9,524,000
Depreciation and Amortization 22,182,000
Capital Expenditure -35,114,000
Unlevered Free Cash Flow 20,151,695
Current Assets 167,329,000
Current Cash 99,138,000
Current Liabilities 57,380,000
Current Debt 0
Non-Cash Working Capital (NCWC) 10,811,000
Change in NCWC -773,000
EBIT 28,641,000
Tax Provision 11,006,000
Depreciation and Amortization 18,639,000
Capital Expenditure -29,647,000
Unlevered Free Cash Flow 5,922,357
Current Assets 153,281,000
Current Cash 89,050,000
Current Liabilities 52,647,000
Current Debt 0
Non-Cash Working Capital (NCWC) 11,584,000
Change in NCWC -5,794,000
EBIT 23,992,000
Tax Provision 9,429,000
Depreciation and Amortization 15,947,000
Capital Expenditure -17,954,000
Unlevered Free Cash Flow 6,749,012
Current Assets 128,346,000
Current Cash 67,797,000
Current Liabilities 43,171,000
Current Debt 0
Non-Cash Working Capital (NCWC) 17,378,000
Change in NCWC 7,174,000
EBIT 21,528,000
Tax Provision 7,699,000
Depreciation and Amortization 13,175,000
Capital Expenditure -31,373,000
Unlevered Free Cash Flow 2,792,821

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.