Below please find a table outlining a discounted cash flow forecast for MTEX, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Mannatech Inc ranked in the 6th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 97%. The most interesting components of our discounted cash flow analysis for Mannatech Inc ended up being:
In the past 5.5 years, Mannatech Inc has a compound free cash flow growth rate of -0.32%; that's better than only 5.85% of cash flow producing equities in the Consumer Defensive sector, where it is classified.
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than only 10.99% of the free cash flow producing stocks we're observing.
Mannatech Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -44.29. This coverage rate is greater than that of only 3.01% 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 Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MTEX, try CALM, LRN, ALCO, FMX, and SAFM.
The Meaning Behind Value Stocks A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.The following stocks are considered to be notable value stocks in the consumer defensive sector: 1. Mannatech (NASDAQ:MTEX) - P/E: 5.57 2. Kroger (NYSE:KR) - P/E: 8.53 3. Seneca Foods (NASDAQ:SENEB) - P/E: 4.59 4. Alico (NASDAQ:ALCO) - P/E: 9.86 5. SpartanNash (NASDAQ:SPTN) - P/E: 9.24Mannatech's earnings per share for Q3 sits at 0.76, whereas in Q2, they were a...