Neenah Paper produces image and performance-based products, including filtration, specialized substrates used for tapes, labels and other products, and high-end printing papers. The company was founded in 2004 and is based in Alpharetta, Georgia.
NP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Neenah Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Neenah Inc ranked in the 48th percentile in terms of potential gain offered. In terms of the factors that were most noteworthy in this DCF analysis for NP, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 76. Its equity weight surpasses that of 61.2% of free cash flow generating stocks in the Basic Materials sector.
Neenah Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 23.05% of tickers in our DCF set.
Neenah Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 7.35. This coverage rate is greater than that of 69.42% 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
ARLP, TROX, FF, CC, and HWKN can be thought of as valuation peers to NP, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
ALPHARETTA, Ga., May 7, 2020 /PRNewswire/ -- Neenah, Inc. (NYSE: NP) announced today that Senior Vice President, Chief Financial Officer (CFO) and Treasurer Bonnie Lind has communicated her plans to retire. Ms. Lind will remain with Neenah through an October 1 retirement date to ensure a…
ALPHARETTA, Ga., May 5, 2020 /PRNewswire/ -- Neenah, Inc. (NYSE: NP) announced today that due to safety concerns from the coronavirus (COVID-19) pandemic and related regulatory restrictions on non-essential activities, that the Company's 2020 annual meeting of stockholders has been…