Michaels Companies owns and operates a chain of arts and crafts specialty retail stores under the Michaels and Aaron Brothers names in North America. The company was founded in 2013 and is based in Irving, Texas.
MIK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MIK, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Michaels Companies Inc ranked in the 68th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for MIK, they are:
As a business, MIK is generating more cash flow than 68.86% of positive cash flow stocks in the Consumer Cyclical.
16% of the company's capital comes from equity, which is greater than just 6.55% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 84% of the company's capital is sourced from debt; this is greater than 93.41% of the free cash flow producing stocks we're observing.
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 Michaels Companies Inc? See CTIB, FBHS, DISH, SNBR, and FWONA.
Michaels Companies (MIK) trades higher after being singled out by Barron's as a "disliked" stock that could be a big opportunity for investors as a turnaround story. "Demand bounced back when stores reopened in May. Wall Street expects the company to earn about 94 cents a share in 2021, down...