Lawson Products is an industrial distributor of maintenance and repair products, serving the industrial, commercial, institutional and government maintenance, repair and operations (MRO) market. The company was founded in 1952 and is based in Chicago, Illinois.
LAWS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Lawson Products Inc. To summarize, we found that Lawson Products Inc ranked in the 12th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 83%. In terms of the factors that were most noteworthy in this DCF analysis for LAWS, they are:
The compound growth rate in the free cash flow of Lawson Products Inc over the past 5.6 years is -0.06%; that's better than only 18.79% of cash flow producing equities in the Industrials sector, where it is classified.
The business' balance sheet suggests that 5% of the company's capital is sourced from debt; this is greater than merely 13.7% of the free cash flow producing stocks we're observing.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CVA, ALJJ, BWXT, DEWY, and DHX can be thought of as valuation peers to LAWS, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.