Unique Fabricating engineers and manufactures components for customers in the automotive and industrial appliance market. The Company's solutions are used in a wide range of products including air management products, heating ventilating and air conditioning (HVAC), seals, fender stuffers, air ducts, acoustical insulation, door water shields, gas tank pads, light gaskets, topper pads, mirror gaskets and glove box liners. The company was founded in 1975 and is based in Auburn Hills, Michigan.
UFAB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for UFAB, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Unique Fabricating Inc ranked in the 47th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for UFAB, they are:
Unique Fabricating Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.36. This coverage rate is greater than that of only 23.89% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Unique Fabricating Inc experienced a tax rate of about 30% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 83.13% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
OMC, CBRL, DLA, FOSL, and THO can be thought of as valuation peers to UFAB, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.