Core Molding Technologies, Inc. manufactures sheet molding compound (SMC) and molds fiberglass reinforced plastics. It specializes in large-format moldings and offers a range of fiberglass processes, including compression molding of SMC, glass mat thermoplastics, bulk molding compounds, and direct long-fiber thermoplastics; and spray-up, hand lay-up, and resin transfer molding. The company was founded in 1988 and is based in Columbus, Ohio.
CMT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CMT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Core Molding Technologies Inc ranked in the 97th percentile in terms of potential gain offered. As the table below shows, the model suggests the stock is dramatically undervalued -- investors should note, though, that such returns are always unlikely and not to be expected. As for the metrics that stood out in our discounted cash flow analysis of Core Molding Technologies Inc, consider:
The company's balance sheet shows it gets 47% of its capital from equity, and 53% of its capital from debt. Notably, its equity weight is greater than just 23.45% of US equities in the Basic Materials sector yielding a positive free cash flow.
Core Molding Technologies Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.71. This coverage rate is greater than that of merely 18.27% 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
FUL, NTR, AVTR, SIM, and BTG can be thought of as valuation peers to CMT, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
We are still in an overall bull market and many stocks that smart money investors were piling into surged through the end of November. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 54% and 51% respectively. Hedge funds' top 3 stock picks returned 41.7% this year and beat […]