The investment objective of the AlphaMark Actively Managed Small Cap ETF seeks to target stocks exhibiting consistent growth, earnings and cash flow to arrive at a portfolio of 25-40 stocks based on earnings momentum, cash flows relative to capital spending, and reviews of financial statements, enterprise value and management.
SMP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Standard Motor Products Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Standard Motor Products Inc ranked in the 83th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 542.67%. In terms of the factors that were most noteworthy in this DCF analysis for SMP, they are:
The company's balance sheet shows it gets 96% of its capital from equity, and 4% of its capital from debt. Its equity weight surpasses that of 92.63% of free cash flow generating stocks in the Consumer Cyclical sector.
The business' balance sheet suggests that 4% of the company's capital is sourced from debt; this is greater than just 13.93% of the free cash flow producing stocks we're observing.
SMP's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 45.82% of tickers in our DCF set.
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 Standard Motor Products Inc? See CLAR, TCS, HVT, NXST, and GEF.
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NEW YORK, Dec. 28, 2020 /PRNewswire/ -- Standard Motor Products, Inc. (SMP) announces the winners of its sixth-annual Intermotor® 'Import Leader' Automotive Scholarship Contest: Jackson Dietrich, of St. Charles, IL; Logan Peterson, of Litchfield, MN; Korbyn Cowan, of Sand Springs, OK; and…
Standard Motor Products’ (SMP) strong third-quarter operating rebound has been offset by recent news to investors about a key customer loss. Shares went down 16% following the press release, shedding approximately $300 million in market value. Although the phase-out of this customer will occur in stages starting in Q2 of...