1. Introduction: In this part, introduce the company, write about the products i
1. Introduction: In this part, introduce the company, write about the products it offers and the industries it operates in.
2. Competitors: Write a bit about its competitors (top 2 only). If available, write about market share of each, stock price levels etc.
3. Horizontal and Vertical analysis: (This is for 3 years of data for the income statement and balance sheet and statement of cash flows) Identify trends that you observe with 3 years of data. Have sales increased or not? If sale shave increased, how about COGS? SG&A?
4. Ratio analysis: Analyze your ratios. Write about how your company′s ratios compare to industry ratios. Are they ahead or behind? What areas of improvement exist? Review and analyze the liquidity ratios, asset management ratios, debt management ratios and profitability ratios.
5, Capital structure: Here write about the current capital structure and how it has changed over the 3-year analysis period.
6. Capex: How much have they invested into new projects? What is expected from these projects? How is the investor community reacting to the riskiness associated with these projects?
7. Dividend policy: Write about what kind of dividend policy they have. How much do they pay out or put back into the business every year?
8. Working capital management: Analyze their CCC and their cash requirements over the 3 year period. How does it compare to their competitors.
9. Risk assessment: Write about the risks that this company faces from a market share perspective, competitor and innovation perspective and how this could impact key metrics like ROIC, cash flows, revenues etc.
10. Analyst ratings: Obtain a summary of analyst sentiment around this company.
11. Recommendation: Indicate whether one should invest in your company or not.
Note: This is a 4-page paper. But, you can have as many exhibits as you′d like and have them included in the appendix section at the back of the paper. With your paper, strategically use small graphs and tables. Use as much publicly available information as possible – please cite them. Don′t reinvent the wheel – if Morningstar or Bloomberg already has statistics available for your company, use them but critically, you have to show me that you understand the stats from your written analysis. If you want to increase the length of your paper to more than 4 pages (no penalties), please let me know.