DavidsTea Inc. provides a selection of loose-leaf teas, pre-packaged teas, tea sachets, and tea-related gifts and accessories in Canada and the United States through its retail stores. The company was founded in 2008 and is based in Montreal, Canada.
DTEA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for DTEA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that DAVIDsTEA Inc ranked in the 91th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2657.5%. The most interesting components of our discounted cash flow analysis for DAVIDsTEA Inc ended up being:
The company's balance sheet shows it gets 52% of its capital from equity, and 48% of its capital from debt. Notably, its equity weight is greater than just 21.83% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
DAVIDsTEA Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -8.61. This coverage rate is greater than that of merely 9.27% 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
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DTEA, try NATR, BIG, COKE, CYAN, and TANH.
There is a company that has undergone a business transformation over the last few months. And its stock remains captive of disinterest because some uncertainties exist. But we consider this lack of interest to provide an excellent opportunity for those investors who are willing to take a deep dive into...
Deep value investing is quite the allure for many investors. David's Tea (DTEA) caught my attention as a potential turnaround investment opportunity whose market cap is less than the company's cash on hand. However, in order for such opportunities to be successful, we need to examine what the future state...
MONTREAL, July 31, 2020 (GLOBE NEWSWIRE) -- DAVIDsTEA Inc. (Nasdaq:DTEA) is pleased to announce that the five nominees listed in its management information circular dated June 25, 2020 were re-elected as directors at the Company’s annual meeting of shareholders held today in Montreal. According to proxies received and ballots cast, the votes were as follows: Name of NomineeVotes for%Votes Withheld% Herschel Segal13,478,65098.72174,8551.28 Susan L. Burkman13,567,58399.3785,9220.63 Pat De Marco13,515,66998.99137,8361.01 Emilia Di Raddo13,508,95698.94144,5491.06 Peter Robinson13,518,14699.01135,3590.99 At the annual meeting, DAVIDsTEA’s shareholders also re-appointed Ernst & Young LLP, Chartered Professional Accountants, as DAVIDsTEA’s auditor.About DAVIDsTEADAVIDsTEA is a leading...