DCF Tool

SHYF

Shyft Group Inc (The) – Heavy Duty Truck Manufacturing
Spartan RV Chassis is a part of The Shyft Group family of brands. The Shyft Group is the North American leader in specialty vehicle manufacturing, assembly, and upfit for the commercial, retail, and service specialty vehicle markets. Its customers include first-to-last mile delivery companies across vocations, federal, state, and local government entities; the trades; and utility and infrastructure segments. The Shyft Group is organized into two core business units: Shyft Fleet Vehicles & Services and Shyft Specialty Vehicles. Today, its family of brands include Utilimaster, Royal Truck Body, DuraMag and Magnum, Strobes-R-Us, Spartan RV Chassis, Builtmore Contract manufacturing, and corresponding aftermarket provisions. The Shyft Group and its go-to-market brands are well known in their respective industries for quality, durability, and first-to-market innovation. The Company employs approximately 2,900 associates across campuses, and operates facilities in Michigan, Indiana, Maine, Pennsylvania, South Carolina, Florida, Missouri, California, Arizona, Texas, and Saltillo, Mexico. The Company reported sales from continuing operations of $757 million in 2019.
Analysis Results
Intrinsic Value $63.28
Latest Price $24.06
Relative Value 62% 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 27.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 27.5%, 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 98.3 88.7
2023 125 102
2024 160 117
2025 204 135
2026 260 156
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 3000 million. This corresponds to a present value of 1620 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 599 million. Adding in the terminal value gives a total present value of 2220 million.

There are presently 35.1 million outstanding shares, so the intrinsic value per share is 63.28.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 233,826,000
Current Cash 37,158,000
Current Liabilities 135,837,000
Current Debt 10,178,000
Non-Cash Working Capital (NCWC) 71,009,000
Change in NCWC 22,436,000
EBIT 84,052,000
Tax Provision 14,506,000
Depreciation and Amortization 11,356,000
Capital Expenditure -23,002,000
Unlevered Free Cash Flow 80,409,491
Current Assets 156,207,000
Current Cash 20,995,000
Current Liabilities 93,363,000
Current Debt 6,724,000
Non-Cash Working Capital (NCWC) 48,573,000
Change in NCWC -35,268,000
EBIT 48,848,000
Tax Provision 9,867,000
Depreciation and Amortization 14,187,000
Capital Expenditure -14,534,000
Unlevered Free Cash Flow 3,224,211
Current Assets 252,808,000
Current Cash 19,349,000
Current Liabilities 157,957,000
Current Debt 8,339,000
Non-Cash Working Capital (NCWC) 83,841,000
Change in NCWC 3,988,000
EBIT 47,696,000
Tax Provision 10,355,000
Depreciation and Amortization 11,180,000
Capital Expenditure -10,042,000
Unlevered Free Cash Flow 42,345,977
Current Assets 245,329,000
Current Cash 27,439,000
Current Liabilities 138,097,000
Current Debt 60,000
Non-Cash Working Capital (NCWC) 79,853,000
Change in NCWC 24,257,000
EBIT 17,844,000
Tax Provision 2,261,000
Depreciation and Amortization 10,370,000
Capital Expenditure -8,985,000
Unlevered Free Cash Flow 41,150,257
Current Assets 198,787,000
Current Cash 33,523,000
Current Liabilities 109,732,000
Current Debt 64,000
Non-Cash Working Capital (NCWC) 55,596,000
Change in NCWC 13,105,000
EBIT 17,423,000
Tax Provision 90,000
Depreciation and Amortization 9,937,000
Capital Expenditure -5,340,000
Unlevered Free Cash Flow 35,027,142
Current Assets 162,191,000
Current Cash 32,041,000
Current Liabilities 87,724,000
Current Debt 65,000
Non-Cash Working Capital (NCWC) 42,491,000
Change in NCWC -10,799,000
EBIT 9,720,000
Tax Provision 100,000
Depreciation and Amortization 7,903,000
Capital Expenditure -13,410,000
Unlevered Free Cash Flow -6,697,685
Current Assets 158,301,000
Current Cash 32,701,000
Current Liabilities 72,373,000
Current Debt 63,000
Non-Cash Working Capital (NCWC) 53,290,000
Change in NCWC -18,830,000
EBIT -9,624,000
Tax Provision 4,880,000
Depreciation and Amortization 7,437,000
Capital Expenditure -4,895,000
Unlevered Free Cash Flow -25,912,000
Current Assets 161,251,000
Current Cash 28,570,000
Current Liabilities 60,620,000
Current Debt 59,000
Non-Cash Working Capital (NCWC) 72,120,000
Change in NCWC 2,173,000
EBIT 1,006,000
Tax Provision -2,103,000
Depreciation and Amortization 8,378,000
Capital Expenditure -3,463,000
Unlevered Free Cash Flow 8,094,000
Current Assets 170,727,000
Current Cash 30,707,000
Current Liabilities 70,152,000
Current Debt 79,000
Non-Cash Working Capital (NCWC) 69,947,000
Change in NCWC -7,220,000
EBIT -3,344,000
Tax Provision -1,881,000
Depreciation and Amortization 9,238,000
Capital Expenditure -3,526,000
Unlevered Free Cash Flow -4,852,000
Current Assets 152,523,000
Current Cash 21,748,000
Current Liabilities 53,690,000
Current Debt 82,000
Non-Cash Working Capital (NCWC) 77,167,000
Change in NCWC 10,116,000
EBIT 6,542,000
Tax Provision 100,000
Depreciation and Amortization 8,990,000
Capital Expenditure -12,468,000
Unlevered Free Cash Flow 13,180,000

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