As of June 2, 2025, Uni-Select Inc has a Discounted Cash Flow (DCF) derived fair value of $72.86 per share. With the current market price at $47.96, this represents a potential upside of 51.9%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $58.03 |
| DCF Fair Value (10-year) | $72.86 |
| Potential Upside (5-year) | 21.0% |
| Potential Upside (10-year) | 51.9% |
| Discount Rate (WACC) | 5.4% - 7.2% |
Revenue is projected to grow from $1731 million in 12-2022 to $3017 million by 12-2032, representing a compound annual growth rate of approximately 5.7%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2022 | 1731 | 7% |
| 12-2023 | 1831 | 6% |
| 12-2024 | 1927 | 5% |
| 12-2025 | 1991 | 3% |
| 12-2026 | 2178 | 9% |
| 12-2027 | 2317 | 6% |
| 12-2028 | 2439 | 5% |
| 12-2029 | 2617 | 7% |
| 12-2030 | 2748 | 5% |
| 12-2031 | 2879 | 5% |
| 12-2032 | 3017 | 5% |
Net profit margin is expected to improve from 4% in 12-2022 to 4% by 12-2032, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2022 | 65 | 4% |
| 12-2023 | 75 | 4% |
| 12-2024 | 79 | 4% |
| 12-2025 | 82 | 4% |
| 12-2026 | 90 | 4% |
| 12-2027 | 95 | 4% |
| 12-2028 | 101 | 4% |
| 12-2029 | 108 | 4% |
| 12-2030 | 113 | 4% |
| 12-2031 | 119 | 4% |
| 12-2032 | 124 | 4% |
with a 5-year average of $18 million. Projected CapEx is expected to maintain at approximately 1% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2023 | 18 |
| 12-2024 | 17 |
| 12-2025 | 19 |
| 12-2026 | 21 |
| 12-2027 | 22 |
| 12-2028 | 23 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 16 |
| Days Inventory | 122 |
| Days Payables | 113 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2023 | 97 | 13 | 15 | 69 | (0) |
| 2024 | 134 | 18 | 21 | (54) | 149 |
| 2025 | 140 | 18 | 21 | 10 | 91 |
| 2026 | 153 | 20 | 24 | 23 | 87 |
| 2027 | 163 | 21 | 25 | (9) | 125 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 58.03 | 21.0% |
| 10-Year DCF (Growth) | 72.86 | 51.9% |
| 5-Year DCF (EBITDA) | 27.55 | -42.6% |
| 10-Year DCF (EBITDA) | 40.38 | -15.8% |
Is Uni-Select Inc (UNS.TO) a buy or a sell? Uni-Select Inc is definitely a buy. Based on our DCF analysis, Uni-Select Inc (UNS.TO) appears to be significantly undervalued with upside potential of 51.9%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $47.96.