Sequential Brands Group owns, promotes, markets, and licenses a portfolio of consumer brands in the fashion, active and lifestyle categories. The company was founded in 1982 and is based in New York, New York.
SQBG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Sequential Brands Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Sequential Brands Group Inc ranked in the 56th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 52% on a DCF basis. The most interesting components of our discounted cash flow analysis for Sequential Brands Group Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 2. Notably, its equity weight is greater than only 0.9% of US equities in the Consumer Cyclical sector yielding a positive free cash flow.
Sequential Brands Group Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.51. This coverage rate is greater than that of just 18.87% 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 Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SQBG, try CRWS, CSV, THRM, MDP, and ANF.
Sequential Brands Group, Inc. (SQBG) Q2 2020 Earnings Conference Call August 13, 2020 08:30 PM ET Company Participants David Conn - CEO Dan Hanbridge - Interim CFO Presentation Operator Thank you, and good morning. Before we begin, I'd like to bring your attention that statements that are not historical facts...
Sequential Brands (SQBG): Q2 Non-GAAP EPS of -$1.10; GAAP EPS of -$1.78.Revenue of $22.59M (-14.5% Y/Y).Shares +12.13% PM.“Despite the ongoing challenges that the COVID-19 pandemic has presented, it has also demonstrated the durability of our business model and the demand for several of our core brands. While there is still much uncertainty...