AIMC's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 119.61 -- higher than 77.44% of US-listed equities with positive expected earnings growth.
Over the past twelve months, AIMC has reported earnings growth of -66.66%, putting it ahead of 26.22% of US stocks in our set.
Shareholder yield, a measure of how much is returned to shareholders via dividends and share repurchases, for AIMC comes in at 6.17% -- higher than that of 75.59% of stocks in our set.
Stocks with similar financial metrics, market capitalization, and price volatility to Altra Industrial Motion Corp are ORBC, BC, PRGO, AMAG, and WAB.
Altra Industrial Motion Corp. designs, produces, and markets electromechanical power transmission products worldwide. It operates through three segments: Clutches and Brakes, Couplings, and Gearing and Power Transmission Components. The company was formerly known as Altra Holdings, Inc. and changed its name to Altra Industrial Motion Corp. in November 2013. The company is based in Braintree, Massachusetts.
AIMC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for AIMC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Altra Industrial Motion Corp ranked in the 50th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 15.17% on a DCF basis. The most interesting components of our discounted cash flow analysis for Altra Industrial Motion Corp ended up being:
Altra Industrial Motion Corp's weighted average cost of capital (WACC) is 11%; for context, that number is higher than 76% of tickers in our DCF set.
Altra Industrial Motion Corp's effective tax rate, as measured by taxes paid relative to net income, is at 20 -- greater than 80.55% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 72.97% of stocks in its sector (Industrials).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HUBB, MIDD, NVT, TGH, and HAYN can be thought of as valuation peers to AIMC, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Altra Industrial Motion Corp. (AIMC) Q2 2020 Earnings Conference Call July 24, 2020 10:00 A.M. ET Company Participants David Calusdian - President, Sharon Merrill Associates, IR Carl Christenson - Chairman and Chief Executive Officer Christian Storch - Executive Vice President and Chief Financial Officer Conference Call Participants Jeffrey Hammond -...