FAME (Flamemaster) Net-Net Working Capital: $2.39 (As of Mar. 2005)

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What is Flamemaster Net-Net Working Capital?

Flamemaster FAME Net-Net Working Capital is $2.39 as of Mar. 2005.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Flamemaster's Net-Net Working Capital for the quarter that ended in Mar. 2005 was $2.39.

The industry rank for Flamemaster's Net-Net Working Capital or its related term are showing as below:

FAME's Price-to-Net-Net-Working-Capital is not ranked *
in the Chemicals industry.
Industry Median: 7.46
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Flamemaster  (OTCPK:FAME) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


Flamemaster Net-Net Working Capital Related Terms


Flamemaster Net-Net Working Capital Historical Data

* Premium members only.

The historical data trend for Flamemaster's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Flamemaster Net-Net Working Capital Chart

Flamemaster Annual Data
Trend Sep95 Sep96 Sep97 Sep98 Sep99 Sep00 Sep01 Sep02 Sep03 Sep04
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.50 3.80 3.35 4.86 2.31

Flamemaster Quarterly Data
Jun00 Sep00 Dec00 Mar01 Jun01 Sep01 Dec01 Mar02 Jun02 Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.10 2.24 2.31 2.32 2.39

Flamemaster Net-Net Working Capital Competitor Comparison

For the Specialty Chemicals subindustry, Flamemaster's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Flamemaster Price-to-Net-Net-Working-Capital vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Flamemaster's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Flamemaster's Price-to-Net-Net-Working-Capital falls into.



Flamemaster Net-Net Working Capital Calculation

Flamemaster's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Sep. 2004 is calculated as

Net-Net Working Capital(A: Sep. 2004 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(2.181+0.75 * 0.691+0.5 * 1.034-0.32
-0-0)/1.256
=2.31

Flamemaster's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2005 is calculated as

Net-Net Working Capital(Q: Mar. 2005 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(2.193+0.75 * 0.761+0.5 * 1.084-0.305
-0-0)/1.254
=2.39

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.

What does a Net-Net Working Capital of $2.39 mean?
Flamemaster (FAME) has a Net-Net Working Capital of $2.39 as of Mar. 2005. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Flamemaster
Is Flamemaster's Net-Net Working Capital too high?
Flamemaster's current Net-Net Working Capital is $2.39. The Chemicals industry median Net-Net Working Capital is 7.46. Flamemaster's value of $2.39 is 68% below this industry median.
How does Flamemaster's Net-Net Working Capital compare to competitors?
Flamemaster's Net-Net Working Capital of $2.39 can be compared against companies in the Chemicals industry. The industry median Net-Net Working Capital is 7.46. Flamemaster's value of $2.39 is 68% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Chemicals company?
The median Net-Net Working Capital among Chemicals companies is 7.46, based on 588 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Flamemaster's current Net-Net Working Capital of $2.39 is 68% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Flamemaster For the Chemicals industry, the median Net-Net Working Capital is 7.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Flamemaster's current Net-Net Working Capital is $2.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Flamemaster stock overvalued right now?
Flamemaster (FAME) has a current Net-Net Working Capital of $2.39. The current Net-Net Working Capital is $2.39 and 68% below the Chemicals industry median of 7.46. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Flamemaster (FAME), the current Net-Net Working Capital is $2.39 as of Mar. 2005. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Flamemaster Business Description

Address 13576 Desmond Street, Pacoima, CA, USA, 91331-2315
Flamemaster Corp manufactures sealants, adhesives, ablative and heat-resistant coatings and electrical cable fire retardant coatings. Its products include Sealants and Coatings.