1.) analyze ratios
liquidity ratios
LIQUIDITY Ratios Are wemeeting our current obligations? Working Capital $ 7,143 $ 2,162 $ 2,357 $ (1,204) $ 1,888 Current Ratio 1.55 1.51 1.52 1.57 1.52
2.) Solvency ratio: analyze the ratio
SOLVENCY Ratios Are wehandling debt appropriately? Financial LEVerage 2.82 2.95 2.91 2.74 2.94 Debt ratio 65% 66% 66% 64% 66% Free Cash Flow $ (1,066) $ (2,048) $ (3,067) $ 6,225 $ 7,282
3.) Investment Appeal of Target analysis
Dividends per share $ (1.10) $ (1.32) $ (1.58) $ (1.90) $ (2.13) Market Value per share $ 59.00 $ 56.00 $ 54.00 $ 53.00 $ 53.00 Dividend Yield -1.87% -2.37% -2.93% -3.59% -4.01% Price-to-Earnings (P/E) ratio -53.49 -42.27 -34.14 -27.84 -24.91 Price-to-Sales (P/S) ratio 38.09 37.00 35.44 33.69 34.98 Price-to-Book (P/B) ratio 22.00 23.64 25.13 25.56 25.57
4.) Du pont Analyis analysis
DuPont Analysis of ROE = ROS xAsset turnover = ROA x Financial LEVerage = ROE Return on Sales(ROS), also known as Net Profit Margin 4.19% 4.09% 2.77% -2.25% 4.56% Asset Turnover 1.60 1.57 1.48 1.63 1.79 Return on Assets (ROA) 6.70% 6.43% 4.09% -3.67% 8.17% Financial LEVerage 2.82 2.95 2.91 2.74 2.94 Return on Equity (ROE) 18.91% 18.96% 11.90% -10.08% 24.03%
e.) How does your stack up against its competiton?graph/charts
(1.) is your company in attractive industry? Yes/No
(2.) What metrics determine superior companies for yourindustry?
f.) State your investment thesis-investment philosophy(graphs/charts) (target corporation ) 2011-2015
a.) Sustainability economic moats profitability ? your test yourcompany pass/fail explain
b) growth? stable? dividends ? your test yours company pass/failexplain
c.) financial health? financial risk? your test your companypass/fail explain
d.) quality of income? your test your company pass/failexplain
e.) good value? buy now your test your company pass/failexplain
This stock appears to be trading below/ about /over theprice.
g.) investment decisions (target corporation)
overall, this company is a long term buy/ review again at lowprice / bust )
Why? list 5 good reasons 1, 2, 3, 4, 5,
1.) analyze ratios
liquidity ratios
| LIQUIDITY Ratios | Are wemeeting our current obligations? | ||||
| Working Capital | $ 7,143 | $ 2,162 | $ 2,357 | $ (1,204) | $ 1,888 |
| Current Ratio | 1.55 | 1.51 | 1.52 | 1.57 | 1.52 |
2.) Solvency ratio: analyze the ratio
| SOLVENCY Ratios | Are wehandling debt appropriately? | ||||
| Financial LEVerage | 2.82 | 2.95 | 2.91 | 2.74 | 2.94 |
| Debt ratio | 65% | 66% | 66% | 64% | 66% |
| Free Cash Flow | $ (1,066) | $ (2,048) | $ (3,067) | $ 6,225 | $ 7,282 |
3.) Investment Appeal of Target analysis
| Dividends per share | $ (1.10) | $ (1.32) | $ (1.58) | $ (1.90) | $ (2.13) |
| Market Value per share | $ 59.00 | $ 56.00 | $ 54.00 | $ 53.00 | $ 53.00 |
| Dividend Yield | -1.87% | -2.37% | -2.93% | -3.59% | -4.01% |
| Price-to-Earnings (P/E) ratio | -53.49 | -42.27 | -34.14 | -27.84 | -24.91 |
| Price-to-Sales (P/S) ratio | 38.09 | 37.00 | 35.44 | 33.69 | 34.98 |
| Price-to-Book (P/B) ratio | 22.00 | 23.64 | 25.13 | 25.56 | 25.57 |
4.) Du pont Analyis analysis
| DuPont Analysis of ROE = ROS xAsset turnover = ROA x Financial LEVerage = ROE | |||||
| Return on Sales(ROS), also known as Net Profit Margin | 4.19% | 4.09% | 2.77% | -2.25% | 4.56% |
| Asset Turnover | 1.60 | 1.57 | 1.48 | 1.63 | 1.79 |
| Return on Assets (ROA) | 6.70% | 6.43% | 4.09% | -3.67% | 8.17% |
| Financial LEVerage | 2.82 | 2.95 | 2.91 | 2.74 | 2.94 |
| Return on Equity (ROE) | 18.91% | 18.96% | 11.90% | -10.08% | 24.03% |
e.) How does your stack up against its competiton?graph/charts
(1.) is your company in attractive industry? Yes/No
(2.) What metrics determine superior companies for yourindustry?
f.) State your investment thesis-investment philosophy(graphs/charts) (target corporation ) 2011-2015
a.) Sustainability economic moats profitability ? your test yourcompany pass/fail explain
b) growth? stable? dividends ? your test yours company pass/failexplain
c.) financial health? financial risk? your test your companypass/fail explain
d.) quality of income? your test your company pass/failexplain
e.) good value? buy now your test your company pass/failexplain
This stock appears to be trading below/ about /over theprice.
g.) investment decisions (target corporation)
overall, this company is a long term buy/ review again at lowprice / bust )
Why? list 5 good reasons 1, 2, 3, 4, 5,
Related questions
my company is target. Target competitor are Walmart, Amazon,Costco.
e.) How does your company stack up against its competiton.(graph/charts) (1-2 pages)
(1). Is company attractive in an attractive industry
(2.) what metrics superior companies for industry.
3.) analyze your company ranks in the industry using dupontanalysis and industry specififc ratios.
f.) state your investment thesis your investment philosophy
Does your company pass the your 10 minute test(graph/charts)
A.) Sustainable economic moat ? (your test) profitability? yourcompany ( Pass / Fail) Explain
B.) Growth? Stable? Dividends? (your test) your company (Pass /Fail) Explain
C.) Financial Health? Financial Risk your test your company(pass/ fail) explain
D.) Quality of Income? your test your company (pass/fail)explain
e.) good value? Buy now? your test your company (pass/fail)explain
This stock appears to be trading (below / about / over itaverage price.
g.) investment decisions
overall, this company is long term ( buy/ review again at lowerprice / bust?
Why? Give 5 good reason
1.
2.
3.
4.
5.
| $ in Millions | 1/30/2011 | 1/29/2012 | 2/3/2013 | 2/2/2014 | 2/1/2015 |
| PROFITABILITY Ratios | Are we generating enough returns on revenuesand investments? | ||||
| Gross Profit Margin | 31% | 31% | 30% | 29% | 30% |
| Net ProfitMargin, also known as Return on Sales (ROS) | 4% | 4% | 3% | -2% | 5% |
| Return on Assets (ROA) | 7% | 6% | 4% | -4% | 8% |
| Earnings per Share (EPS) | $4.31 | $4.57 | $3.10 | -$2.58 | $5.25 |
| Quality of Earnings ratio | -1.86 | -1.78 | -3.31 | -2.71 | 1.74 |
Investment Ratios
| INVESTMENT Ratios | How do weappear to our shareholders? | ||||
| Dividends per share | $ (1.10) | $ (1.32) | $ (1.58) | $ (1.90) | $ (2.13) |
| Market Value per share | $ 59.00 | $ 56.00 | $ 54.00 | $ 53.00 | $ 53.00 |
| Dividend Yield | -1.87% | -2.37% | -2.93% | -3.59% | -4.01% |
| Price-to-Earnings (P/E) ratio | -53.49 | -42.27 | -34.14 | -27.84 | -24.91 |
| Price-to-Sales (P/S) ratio | 38.09 | 37.00 | 35.44 | 33.69 | 34.98 |
| Price-to-Book (P/B) ratio | 22.00 | 23.64 | 25.13 | 25.56 | 25.57 |
| DuPont Analysis of ROE = ROS xAsset turnover = ROA x Financial LEVerage = ROE | |||||
| Return on Sales(ROS), also known as Net Profit Margin | 4.19% | 4.09% | 2.77% | -2.25% | 4.56% |
| Asset Turnover | 1.60 | 1.57 | 1.48 | 1.63 | 1.79 |
| Return on Assets (ROA) | 6.70% | 6.43% | 4.09% | -3.67% | 8.17% |
| Financial LEVerage | 2.82 | 2.95 | 2.91 | 2.74 | 2.94 |
| Return on Equity (ROE) | 18.91% | 18.96% | 11.90% | -10.08% | 24.03% |
| Year-End | 2/1/2015 | 1/30/2015 | 1/31/2015 | competitors | Year-End | ||
| $ in Millions | Target | Walmart | Costco | Amazon | $ in Millions | ||
| Assets | $ 41,172 | $ 203,490 | $ 35,451 | $ 64,747 | Assets | ||
| Liabilities | $ 27,175 | $ 122,096 | $ 24,603 | $ 51,363 | Liabilities | ||
| SEquity | $ 13,997 | $ 81,394 | $ 10,848 | $ 13,384 | SEquity | ||
| Revenue | $ 73,785 | $ 485,651 | $ 27,220 | $ 107,006 | Revenue | ||
| Net Income | $ 3,363 | $ 16,363 | $ 480,000 | $ 596 | Net Income | ||
| Industry Average | |||||||
| ROS | 4.56% | 3.37% | 1763.41% | 0.56% | #DIV/0! | ROS | |
| Asset Turnover | 1.7921 | 2.3866 | 0.7678 | 1.6527 | 1.7921 | Asset Turnover | |
| ROA | 8.17% | 8.04% | 13.54 | 0.92% | 8.17% | ROA | |
| Financial LEVerage | 2.94 | 2.50 | 3.27 | 4.84 | 2.9415 | Financial LEVerage | |
| ROE | 24.03% | 20.10% | 4424.78% | 4.45% | 24.03% | ROE |
