Xcel Brands, Inc. operates as a brand management and development company in the United States. It engages in the design, licensing, and marketing of branded apparel, footwear, accessories, and home goods; and acquisition of high profile consumer lifestyle brands, including the Isaac Mizrahi brand, the Judith Ripka brand, and certain rights of the Liz Claiborne New York brand, as well as H by Halston and H Halston brands. The company is based in New York City, New York.
XELB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for XCel Brands Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that XCel Brands Inc ranked in the 11th 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. As for the metrics that stood out in our discounted cash flow analysis of XCel Brands Inc, consider:
In the past 5.5 years, XCel Brands Inc has a compound free cash flow growth rate of -0.18%; that's better than just 6.91% of cash flow producing equities in the Consumer Cyclical sector, where it is classified.
50% of the company's capital comes from equity, which is greater than only 19.87% of stocks in our cash flow based forecasting set.
XCel Brands Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -7.27. This coverage rate is greater than that of only 10.19% 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
BLMN, GME, NDLS, APEX, and APTV can be thought of as valuation peers to XELB, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
* Third quarter total revenues of $7.4 million rebounding 46% from the second quarter * Continued expense reduction actions; third quarter operating costs decreased more than $1 million year-over-year and product sale margins improved by 6% * GAAP net loss of $0.5 million, ($0.02) per share * Non-GAAP net income of $0.8 million, $0.04 per share * Adjusted EBITDA of $1.4 million NEW YORK, Nov. 12, 2020 (GLOBE NEWSWIRE) -- Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel” or the “Company”), a media and consumer products company, today announced its financial results for the third quarter ended September 30, 2020. Robert W. D'Loren, Chairman and Chief Executive Officer of Xcel commented, “Despite the continued impact of the COVID-19 pandemic on our top and bottom line results, we are very ...
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