The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Harvest Capital Credit Corp. To summarize, we found that Harvest Capital Credit Corp ranked in the 69th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 174.67% on a DCF basis. The most interesting components of our discounted cash flow analysis for Harvest Capital Credit Corp ended up being:
As a business, HCAP is generating more cash flow than merely 8.75% of positive cash flow stocks in the Financial Services.
20% of the company's capital comes from equity, which is greater than merely 6.56% of stocks in our cash flow based forecasting set.
Harvest Capital Credit Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.36. This coverage rate is greater than that of merely 23.92% 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 Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as HCAP, try MKL, HRTG, AJG, MMAC, and SIGI.
Harvest Capital Credit Corporation (NASDAQ:HCAP) announced today that it will report its financial results for the fiscal quarter ended June 30, 2020 before market open on Friday, August 7, 2020. The company will hold a conference call to discuss the results at 11:00 a.m. EDT that morning.
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