DCF Tool

NL

NL Industries, Inc. – Ball and Roller Bearing Manufacturing
NL Industries, Inc. is a diversified holding company. NL conducts its component products operations through its majority-owned subsidiary, CompX International, Inc., and owns a significant interest in Kronos Worldwide, Inc., a global producer and marketer of value-added titanium dioxide pigments.
Analysis Results
Intrinsic Value $18.49
Latest Price $10.03
Relative Value 46% 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 11.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.7%, 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 48.2 44.3
2023 53.8 45.4
2024 60.1 46.6
2025 67.2 47.8
2026 75.0 49.1
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1110 million. This corresponds to a present value of 670 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 233 million. Adding in the terminal value gives a total present value of 903 million.

There are presently 48.8 million outstanding shares, so the intrinsic value per share is 18.49.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 193,648,000
Current Cash 147,002,000
Current Liabilities 30,597,000
Current Debt 0
Non-Cash Working Capital (NCWC) 16,049,000
Change in NCWC 9,431,000
EBIT 44,743,000
Tax Provision 7,479,000
Depreciation and Amortization 3,839,000
Capital Expenditure -4,094,000
Unlevered Free Cash Flow 48,418,697
Current Assets 171,164,000
Current Cash 137,039,000
Current Liabilities 27,507,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,618,000
Change in NCWC 1,472,000
EBIT 21,713,000
Tax Provision -2,515,000
Depreciation and Amortization 3,827,000
Capital Expenditure -1,740,000
Unlevered Free Cash Flow 25,272,000
Current Assets 164,684,000
Current Cash 129,730,000
Current Liabilities 29,808,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,146,000
Change in NCWC 36,084,000
EBIT 38,989,000
Tax Provision 579,000
Depreciation and Amortization 3,685,000
Capital Expenditure -3,166,000
Unlevered Free Cash Flow 74,803,063
Current Assets 166,644,000
Current Cash 116,259,000
Current Liabilities 81,323,000
Current Debt 0
Non-Cash Working Capital (NCWC) -30,938,000
Change in NCWC -43,705,000
EBIT 62,352,000
Tax Provision -15,361,000
Depreciation and Amortization 3,476,000
Capital Expenditure -3,118,000
Unlevered Free Cash Flow 19,005,000
Current Assets 130,667,000
Current Cash 98,316,000
Current Liabilities 19,584,000
Current Debt 0
Non-Cash Working Capital (NCWC) 12,767,000
Change in NCWC 13,173,000
EBIT 108,277,000
Tax Provision -5,634,000
Depreciation and Amortization 3,734,000
Capital Expenditure -2,810,000
Unlevered Free Cash Flow 122,374,000
Current Assets 123,499,000
Current Cash 93,162,000
Current Liabilities 30,743,000
Current Debt 0
Non-Cash Working Capital (NCWC) -406,000
Change in NCWC -4,700,000
EBIT 11,745,000
Tax Provision -2,777,000
Depreciation and Amortization 3,774,000
Capital Expenditure -3,206,000
Unlevered Free Cash Flow 7,613,000
Current Assets 124,764,000
Current Cash 96,462,000
Current Liabilities 24,008,000
Current Debt 0
Non-Cash Working Capital (NCWC) 4,294,000
Change in NCWC -6,552,000
EBIT -56,159,000
Tax Provision -28,611,000
Depreciation and Amortization 3,609,000
Capital Expenditure -4,304,000
Unlevered Free Cash Flow -63,406,000
Current Assets 108,033,000
Current Cash 72,560,000
Current Liabilities 24,627,000
Current Debt 0
Non-Cash Working Capital (NCWC) 10,846,000
Change in NCWC -1,889,000
EBIT 22,631,000
Tax Provision 5,003,000
Depreciation and Amortization 3,601,000
Capital Expenditure -2,858,000
Unlevered Free Cash Flow 18,215,780
Current Assets 84,414,000
Current Cash 52,609,000
Current Liabilities 19,070,000
Current Debt 0
Non-Cash Working Capital (NCWC) 12,735,000
Change in NCWC 1,854,000
EBIT -108,692,000
Tax Provision -41,911,000
Depreciation and Amortization 3,335,000
Capital Expenditure -3,541,000
Unlevered Free Cash Flow -107,044,000
Current Assets 112,653,000
Current Cash 77,987,000
Current Liabilities 24,785,000
Current Debt 1,000,000
Non-Cash Working Capital (NCWC) 10,881,000
Change in NCWC -4,965,000
EBIT 47,671,000
Tax Provision 19,933,000
Depreciation and Amortization 5,826,000
Capital Expenditure -4,564,000
Unlevered Free Cash Flow 31,646,923

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