We started the process of determining a valid price forecast for Nicholas Financial Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Nicholas Financial Inc ranked in the 25th 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 Nicholas Financial Inc ended up being:
The company's balance sheet shows it gets 43% of its capital from equity, and 57% of its capital from debt. Notably, its equity weight is greater than only 22.88% of US equities in the Financial Services sector yielding a positive free cash flow.
The company's compound free cash flow growth rate over the past 5.62 years comes in at -0.12%; that's greater than only 15.23% of US stocks we're applying DCF forecasting to.
Nicholas Financial Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as NICK, try V, WTRE, VOYA, FDS, and HLNE.
In this article we will take a look at whether hedge funds think Nicholas Financial, Inc. (NASDAQ:NICK) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips […]
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