Haynes International produces nickel and cobalt-based alloys in flat product form such as sheet, coil, and plate forms. The Company is focused on developing, manufacturing, marketing, and distributing technologically advanced, high-performance alloys, which are sold primarily in the aerospace, chemical processing, and land-based gas turbine industries. The company was founded in 1912 and is based in Kokomo, Indiana.
HAYN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Haynes International Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Haynes International Inc ranked in the 44th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Haynes International Inc ended up being:
Haynes International Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -4.63. This coverage rate is greater than that of merely 13.03% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Industrials), Haynes International Inc has a reliance on debt greater than merely 9.65% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ETN, KAI, HURN, AVY, and BMI can be thought of as valuation peers to HAYN, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Haynes International, Inc. (HAYN) Q3 2020 Earnings Conference Call July 31, 2020 9:00 AM ET Company Participants David Van Bibber - Controller & Chief Accounting Officer Mike Shor - President & Chief Executive Officer Dan Maudlin - Vice President & Chief Financial Officer Conference Call Participants Steve O'Hara - Sidoti...
* Third quarter net revenues of $80.6 million compared to net revenues of $126.0 million for the same period of fiscal 2019 driven by disruptions in customer demand caused by the COVID-19 pandemic which impacted all of the Company’s major markets, but most pronounced in the aerospace market with steep reductions in airframe and engine builds. * Third quarter net loss of $(8.1) million, or $(0.65) per diluted share, compared to net income of $3.8 million, or $0.30 per diluted share, for the same period of fiscal 2019 with significant gross margin compression due to unfavorable fixed cost absorption caused by the low volumes produced in our facilities, charges to implement cost reductions and higher reserves needed for inventory. In addition, tax expense was unfavorably impacted by ...
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