DCF Tool

ZUMZ

Zumiez Inc – Clothing Accessories Stores
Zumiez is a leading specialty retailer of apparel, footwear, accessories and hardgoods for young men and women who want to express their individuality through the fashion, music, art and culture of action sports, streetwear, and other unique lifestyles. As of January 11, 2021 we operated 728 stores, including 608 in the United States, 52 in Canada, 55 in Europe and 13 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times.
Analysis Results
Intrinsic Value $35.52
Latest Price $22.95
Relative Value 35% 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 6.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 6.6%, 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 59.0 53.0
2024 62.9 50.8
2025 67.0 48.8
2026 71.4 46.7
2027 76.1 44.8
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 846 million. This corresponds to a present value of 448 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 244 million. Adding in the terminal value gives a total present value of 692 million.

There are presently 19.5 million outstanding shares, so the intrinsic value per share is 35.52.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 447,649,000
Current Cash 294,483,000
Current Liabilities 184,439,000
Current Debt 0
Non-Cash Working Capital (NCWC) -31,273,000
Change in NCWC 4,444,000
EBIT 157,810,000
Tax Provision 41,222,000
Depreciation and Amortization 22,930,000
Capital Expenditure -15,749,000
Unlevered Free Cash Flow 128,906,663
Current Assets 535,277,000
Current Cash 375,542,000
Current Liabilities 195,452,000
Current Debt 0
Non-Cash Working Capital (NCWC) -35,717,000
Change in NCWC -37,399,000
EBIT 96,938,000
Tax Provision 26,230,000
Depreciation and Amortization 24,059,000
Capital Expenditure -9,057,000
Unlevered Free Cash Flow 49,723,918
Current Assets 412,588,000
Current Cash 251,196,000
Current Liabilities 159,710,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,682,000
Change in NCWC -67,051,000
EBIT 85,807,000
Tax Provision 24,112,000
Depreciation and Amortization 25,449,000
Capital Expenditure -18,818,000
Unlevered Free Cash Flow 2,649,224
Current Assets 327,175,000
Current Cash 165,334,000
Current Liabilities 93,108,000
Current Debt 0
Non-Cash Working Capital (NCWC) 68,733,000
Change in NCWC 10,722,000
EBIT 61,078,000
Tax Provision 17,125,000
Depreciation and Amortization 27,316,000
Capital Expenditure -21,028,000
Unlevered Free Cash Flow 61,306,983
Current Assets 279,163,000
Current Cash 121,905,000
Current Liabilities 99,247,000
Current Debt 0
Non-Cash Working Capital (NCWC) 58,011,000
Change in NCWC -929,000
EBIT 48,760,000
Tax Provision 21,601,000
Depreciation and Amortization 27,288,000
Capital Expenditure -24,062,000
Unlevered Free Cash Flow 29,296,680
Current Assets 211,363,000
Current Cash 78,826,000
Current Liabilities 73,597,000
Current Debt 0
Non-Cash Working Capital (NCWC) 58,940,000
Change in NCWC 4,739,000
EBIT 39,743,000
Tax Provision 14,320,000
Depreciation and Amortization 27,916,000
Capital Expenditure -20,400,000
Unlevered Free Cash Flow 37,849,239
Current Assets 198,897,000
Current Cash 75,554,000
Current Liabilities 69,142,000
Current Debt 0
Non-Cash Working Capital (NCWC) 54,201,000
Change in NCWC 10,529,000
EBIT 46,165,000
Tax Provision 17,076,000
Depreciation and Amortization 30,410,000
Capital Expenditure -34,834,000
Unlevered Free Cash Flow 35,080,807
Current Assets 279,763,000
Current Cash 154,644,000
Current Liabilities 81,447,000
Current Debt 0
Non-Cash Working Capital (NCWC) 43,672,000
Change in NCWC -7,645,000
EBIT 71,571,000
Tax Provision 28,459,000
Depreciation and Amortization 29,167,000
Capital Expenditure -35,758,000
Unlevered Free Cash Flow 28,907,775
Current Assets 229,846,000
Current Cash 117,155,000
Current Liabilities 61,374,000
Current Debt 0
Non-Cash Working Capital (NCWC) 51,317,000
Change in NCWC 8,374,000
EBIT 72,842,000
Tax Provision 26,016,000
Depreciation and Amortization 26,596,000
Capital Expenditure -35,969,000
Unlevered Free Cash Flow 45,509,590
Current Assets 203,314,000
Current Cash 103,172,000
Current Liabilities 57,199,000
Current Debt 0
Non-Cash Working Capital (NCWC) 42,943,000
Change in NCWC 17,814,000
EBIT 68,542,000
Tax Provision 28,115,000
Depreciation and Amortization 22,957,000
Capital Expenditure -41,070,000
Unlevered Free Cash Flow 40,822,884

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