* Note: Prices are in Million (M) USD.
Description:
Montauk Renewables, Inc., a renewable energy company, is dedicated to the recovery and processing of biogas from landfills and other non-fossil fuel sources. The company is headquartered in Pittsburgh, Pennsylvania.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $46 M
Debt : $63 M
EBITDA : $44 M
Net Debt (Debt - Cash): $17 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Utilities
Industry: Specialty Chemicals
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 24.38
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $7 M
Average Revenue: $147 M
Revenue Converted To Free Cash FLow(%): 5%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 63.45%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $176 M
Revenue 4 Years Ago (2020-12-31): $100 M
Last 5 Years Average Revenue Growth: 15%
Since Revenue Growth is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $142 M
Share Count 5 Years Ago (2020-12-31): $142 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.11
Trailing 12-Month Earnings Per Share (EPS): $0.06
Average Earnings Per Share (EPS): $0.08
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 7%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $2
52-Week Low: $2
Threshold Price (15% Above 52-Week Low): $2
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $309 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based the market cap, we recommend do not exceed 0.5% exposure of Total Portfolio.
Value-Trade has assigned 15 points to above Montauk Renewables Inc (MNTK) stock.
Last 4 Years Avg PE (Limited to last 4 years of EPS data) 40, Fair Value PE 12, Industry Based PE is 15 and Growth based PE is 10. Based on these all values average assigned is 19.25.
Value-Trades has assined P/E value 19.25. Since an average (Current Year EPS + Next Year EPS) earning per share is $0.08.
The fair value of Montauk Renewables Inc (MNTK) stock should be (19.25 x $0.08) = $1.54
