Kirkland's offers a broad selection of distinctive merchandise, including framed art, mirrors, candles, lamps, picture frames, accent rugs, garden accessories and artificial floral products. The company was founded in 1966 and is based in Brentwood, Tennessee.
KIRK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Kirkland'S Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Kirkland'S Inc ranked in the 18th 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 Kirkland'S Inc ended up being:
The company has produced more trailing twelve month cash flow than only 14.86% of its sector Consumer Cyclical.
41% of the company's capital comes from equity, which is greater than only 21.02% of stocks in our cash flow based forecasting set.
Kirkland'S Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -73.15. This coverage rate is greater than that of merely 2.31% 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
SEE, CULP, OXM, WPP, and WW can be thought of as valuation peers to KIRK, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Kirkland's (KIRK) has experienced a remarkable recovery in 2020, after Mr. Market left it for dead. On September 3, 2020, KIRK reported its Q2 2020 results and we know now that Mr. Market correctly sniffed out and anticipated a recovery in financial results alongside a rosy future outlook. As a...
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