Lydall Inc. designs and manufactures specialty engineered filtration media, industrial thermal insulating solutions, and automotive thermal and acoustical barriers worldwide. It operates through four segments, Performance Materials, Industrial Filtration, Thermal/Acoustical Metals, and Thermal/Acoustical Fibers. The company was founded in 1879 and is based in Manchester, Connecticut.
LDL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Lydall Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Lydall Inc ranked in the 69th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 169.67%. The most interesting components of our discounted cash flow analysis for Lydall Inc ended up being:
38% of the company's capital comes from equity, which is greater than only 20.63% of stocks in our cash flow based forecasting set.
Lydall Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -9.4. This coverage rate is greater than that of merely 7.22% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 14. This value is greater than 87.14% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Lydall Inc? See SMRT, GLXZ, BWA, WRK, and IAA.
Now, I'd like to turn the conference over to Mr. Brendan Moynihan, vice president of investor relations. Joining me on today's call are Sara Greenstein, president and chief executive officer, and Randy Gonzales, executive vice president and chief financial officer. Sara will begin the call with a high-level overview of the quarter and how Lydall is addressing the dramatic impacts of the COVID-19 pandemic.