CELL  Brightpoint Inc.

Exchange

NASDAQ

Sector

Consumer Non-Durables

Industry

Electronic Components

Market Cap.

621.1M

Vuru Grade

28.50/100

Current Price

$8.98
0.00 (0.00%)

Stability Price

$54.59
Undervalued by 507.88%

Company Metrics

  • P/E 22.62
  • P/S 0.11
  • P/B 2.15
  • EPS 0.397
  • Cash ROIC 22.12%
  • Cash Ratio 0.04
  • Dividend 0 / 0%
  • Avg. Vol. 636,745.00
  • Shares 69.16M
  • Market Cap. 621.1M

Company Description

Brightpoint, Inc. provides supply chain solutions to the wireless technology industry. The company offers customized logistic services, including procurement, inventory management, software loading, kitting and customized packaging, fulfillment, credit services and receivables management, call center and activation services, Web site hosting, e-fulfillment solutions, repair and remanufacture servi... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

There is no news available at this time.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CELL to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CELL's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$8.98 Current Price

$-10.62 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$54.59 Stability Price (EPV)

Undervalued by 507.88%


Discount Rate: 15.0%

$10.17 Book Price

Undervalued by 13.28%


Varying Cash Return on Invested Capital over the past 5 years

CELL has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. However, there is a substantial variation in their Cash ROIC from year-to-year. This company may have unreliable free cash flow or operates in a business where invested capital costs increase substantially on a sporadic basis. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

CELL has created $22.12 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20072008200920102011
Free Cash Flow 53.05M 251.16M 114.64M 118.34M -141.28M
divided by
Invested Capital 995.95M 415.47M 327.81M 320.59M 521.67M
Cash ROIC 5.33% 60.45% 34.97% 36.91% -27.08%

Very Poor Return on Equity over the past 5 years

CELL has shown an inability to deliver results for shareholders. This could be due to poor management, CELL operating in a highly competitive industry, or having a weak business in general.

CELL has generated a $17.99 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20072008200920102011
Net Income 47.39M -342.11M 26.56M 30.12M 48.83M
divided by
Stockholders' Equity 600.77M 250.56M 276.93M 244.35M 291.17M
Return on Equity 7.89% -136.54% 9.59% 12.33% 16.77%

Good Business Performance over the past 10 years

It's likely CELL has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is CELL has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

CELL has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Free Cash Flow 61.45M 49.47M -702,000.00 56.31M -70.70M 53.05M 251.16M 114.64M 118.34M -141.28M

Weak Balance Sheet

CELL's financial position is not ideal. The key is to check whether CELL is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Cash 43.80M 98.88M 72.12M 106.05M 54.13M 101.58M 57.23M 81.05M 41.66M 40.84M
Current Assets 273.60M 386.45M 374.28M 450.46M 727.50M 1.40B 908.40M 753.59M 915.91M 1.14B
Total Assets 336.30M 444.69M 430.35M 487.82M 778.35M 1.97B 1.15B 1.01B 1.25B 1.51B
Current Liabilities 212.61M 297.11M 276.86M 329.13M 567.74M 874.83M 673.66M 605.14M 885.59M 944.40M
Total Liabilities 222.66M 297.11M 276.86M 338.78M 583.53M 1.37B 895.80M 737.06M 1.00B 1.22B
Stockholder' Equity 113.64M 147.58M 153.49M 149.04M 194.83M 600.77M 250.56M 276.93M 244.35M 291.17M
Current Ratio 1.29 1.30 1.35 1.37 1.28 1.60 1.35 1.25 1.03 1.21
TL-to-TA 0.66 0.67 0.64 0.69 0.75 0.70 0.78 0.73 0.80 0.81

Low or No Reinvestment of Profits over the past 10 years

CELL has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to CELL operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Retained Earnings -89.47M -77.74M -61.45M -53.53M -17.92M 29.47M -312.65M -286.09M -255.97M -207.14M
Retained Earnings Growth - 13.11% 20.95% 12.90% 66.53% 264.45% -1,161.01% 8.49% 10.53% 19.08%

Loss Making Entity over the past 10 years

CELL has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$0.24 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Net Income -28.30M 11.73M 16.29M 10.44M 35.61M 47.39M -342.11M 26.56M 30.12M 48.83M
divided by
Revenue 1.28B 1.80B 1.87B 2.14B 2.43B 4.30B 4.64B 3.19B 3.59B 5.24B
Net Profit Margin -2.22% 0.65% 0.87% 0.49% 1.47% 1.10% -7.37% 0.83% 0.84% 0.93%

Weak Pricing Power over the past 10 years

CELL is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that CELL has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $16.11 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Gross Profit 71.99M 100.22M 118.77M 132.01M 150.91M 270.59M 346.72M 275.82M 314.62M 5.24B
divided by
Revenue 1.28B 1.80B 1.87B 2.14B 2.43B 4.30B 4.64B 3.19B 3.59B 5.24B
Gross Margin 5.64% 5.57% 6.37% 6.17% 6.22% 6.29% 7.47% 8.66% 8.76% 100.00%

High Capital Intensity over the past 10 years

CELL spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

96.70% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Capital Expenditure 8.67M 6.06M 8.34M 12.65M 20.78M 20.25M 21.64M 49.18M 42.11M 60.31M
divided by
Net Income -28.30M 11.73M 16.29M 10.44M 35.61M 47.39M -342.11M 26.56M 30.12M 48.83M
Capital Expenditure Ratio -30.64% 51.64% 51.23% 121.16% 58.35% 42.72% -6.33% 185.19% 139.81% 123.50%

No Dividend History over the past 10 years

CELL has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 48.59M 51.31M 51.76M 49.66M 50.55M 63.57M 78.20M 81.25M 70.19M 69.07M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 1.35 6.44 7.28 15.41 13.45 15.38 4.03 7.49 8.96 10.76
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

CELL has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Shares Outstanding 48.59M 51.31M 51.76M 49.66M 50.55M 63.57M 78.20M 81.25M 70.19M 69.07M
Stock Bought Back - -5.30% -0.87% 4.23% -1.77% -20.48% -18.71% -3.75% 15.75% 1.62%
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