We started the process of determining a valid price forecast for Amrep Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Amrep Corp ranked in the 7th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 96%. In terms of the factors that were most noteworthy in this DCF analysis for AXR, they are:
In the past 5.37 years, Amrep Corp has a compound free cash flow growth rate of -0.25%; that's better than just 8.34% of cash flow producing equities in the Real Estate sector, where it is classified.
The business' balance sheet suggests that 8% of the company's capital is sourced from debt; this is greater than only 23.16% of the free cash flow producing stocks we're observing.
Amrep Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -440.33. This coverage rate is greater than that of only 0.73% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ESBA, ESRT, UDR, CDR, and ESS can be thought of as valuation peers to AXR, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.
PLYMOUTH MEETING, Pa., Dec. 08, 2020 (GLOBE NEWSWIRE) -- AMREP Corporation (NYSE: AXR) today reported net income of $798,000, or $0.10 per share, for its 2021 fiscal second quarter ended October 31, 2020 compared to a net loss of $2,169,000, or $0.27 per share, for the same period of the prior year. For the first six months of 2021, AMREP had net income of $1,391,000, or $0.17 per share, compared to a net loss of $2,365,000, or $0.29 per share, for the same period of 2020. During the second quarter of 2020, AMREP recognized a non-cash pre-tax settlement charge of $2,929,000 due to AMREP’s defined benefit pension plan paying certain lump sum payouts of pension benefits to former employees. AMREP Corporation, through its subsidiaries, is a major holder of land and leading developer of re...
PLYMOUTH MEETING, Pennsylvania, July 27, 2020 (GLOBE NEWSWIRE) -- AMREP Corporation (NYSE: AXR) today reported a net loss of $5,903,000, or $0.73 per share, for its 2020 fiscal year ended April 30, 2020 compared to net income of $1,527,000, or $0.19 per share, for the prior year. Results for 2020 included $8,600,000 of non-cash charges comprised of: (1) a non-cash pre-tax pension settlement charge of $2,929,000 due to the payment of lump sum payouts of pension benefits to 309 former employees and (2) net non-cash pre-tax impairment charges on other assets of $5,046,000 in connection with certain deemed consideration from the sale of the Company’s fulfillment services business. Results for 2019 reflected a net loss from continuing operations of $2,465,000 and net income from discontinue...