FutureFuel Corporation manufactures and sells diversified chemical products, bio-based products, and bio-based specialty chemical products in the United States and internationally. It operates through two segments, Chemicals and Biofuels. The company was founded in 2005 and is based in Clayton, Missouri.
FF Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for FF, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that FutureFuel Corp ranked in the 63th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 112% on a DCF basis. The most interesting components of our discounted cash flow analysis for FutureFuel Corp ended up being:
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately merely 0.05% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
FF's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 55.86% of tickers in our DCF set.
As a business, FutureFuel Corp experienced a tax rate of about 0% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KALU, SMID, RIO, CRH, and VHI can be thought of as valuation peers to FF, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
FutureFuel (FF) had declared $0.06/share quarterly dividend, in line with previous.Payable Sept. 15; for shareholders of record Sept. 1; ex-div Aug. 31.See FF Dividend Scorecard, Yield Chart, & Dividend Growth....
Clayton, Mo., July 13, 2020 (GLOBE NEWSWIRE) -- FutureFuel Corp. (NYSE: FF) (“FutureFuel”), a manufacturer of custom and performance chemicals and biofuels, announced today that it will release second quarter 2020 financial results after market close on Friday, August 7, 2020. About FutureFuelFutureFuel is a leading manufacturer of diversified chemical products and biofuels. FutureFuel’s chemicals segment manufactures specialty chemicals for specific customers (“custom manufacturing”) as well as multi-customer specialty chemicals (“performance chemicals”). FutureFuel’s custom manufacturing product portfolio includes proprietary agrochemicals, adhesion promoters, a biocide intermediate, and an antioxidant precursor. FutureFuel’s performance chemicals products include a portfolio of pro...