in order to decide whether you should buy sell or hold stocks with Fortescue Metals Group Limited (FMG.AX) an investment recommendation report is needed. The report provides an assessment of the company's current position and future prospects, incorporating the use of various valuation techniques to arrive at estimates of the intrinsic value of the company's shares. Your report should make a case for the company's shares to be rated in one of the following ways:
1. DuPont Analysis should be done using the 3-step procedure 3 steps: (Net Profit Margin, Total Asset Turnover and Financial Leverage) 2. analyse the company's and your selected peer companies' ROEs over the period show your own calculations for each component over the previous five years 3.compare the DuPont ROE of the company with its industry peer group companies (analyse and comment on the reasons for the change in ROE for the firm and its competitors with reference to the difference in the three components over five years relevant charts/graphs may be used to illustrate these figures)
RATIOS AND ANALYTICS(LFI: 30-JUN-2020 LFY: 30-JUN-2020) PRICE & VOLUME (AUD) INCOME STATEMENT (USD, M) VALUATION RATIOS (USD) Price LFI LFY Anul LFI LTM LFY 6.335.00 2.75 2.71 Close 52 Wk High: 52 Wk Low: 15.95 (24-Sep-2020) 19.56 (28-Aug-2020) 8.13 (17-Oct-2019) Total Revenue: EBITDA: EBIT: LTM 12,820.00 8,290.00 6,890.00 6,690.00 2.71 7.36 4,153.00 3,410.00 12,820.00 8,306.00 6,890.00 6,690.00 4.735.00 4,735.00 Price % Change 3.263.00 Income Before Tax: Income After Tax: 7.36 7.33 5.65 1-Day: 4.735.00 Curr Price/Rev/Shr: Curr P/E Excl Extra, LTM: P/E Excl. Extra Items: Curr P/E Normalized, LFY: Curr Price/CF/Shr: Curr Price/Tang Bk, Tot Eqty: Curr EV/Tot Revenue (LFI/LTM): Curr EV/EBITDA (LFI/LTM): Curr EV/EBIT (LFI/LTM): 5.76 (0.19%) (14.06%) 5.66 1M: 2,282.00 2.282.00 3,090.66 4,735.00 Income Avail Comm: Dilut Shrs Out Avg: 2.63 2.63 2.73 3M: 12.01% 3,090.04 3,090.04 6M: 63.93% Income 4.22 1Y: YTD: Bef Tax, Normalized, LFY: Aft Tax, Normalized, LFY: Avail Comm, Normalized, LFY: 82.49% 49.20% 11,811,890.00 10.35 (M) 6,706.00 4,756.00 4,756.00 5.08 34,739.99 5,126.00 10 Day Avg Daily Vol: 90 Day Avg Vol (M): Beta 5Yr Monthly Curr Mkt Cap (m): (+) Tot Debt Cap, LFI (m): (-) Cash & Equiv, LFI (m) (=) Curr EV, LFI (m): 4,855.00 0.88 PROFITABILITY RATIOS (%) LFI LTM PER SHARE LFY 55.21% Curr EV/Tot Revenue (LFY): Curr EV/EBITDA (LFY): Curr EV/EBIT (LFY): 55.21% LFI LTM LFY 64.66% 64.79% 55.52% 65.56% 53.07% 51.51% 35,010.99 2.73 4.22 5.08 34,739.99 5,126.00 4,855.00 35,010.99 2.05 Gross Profit % Margin: EBITDA % Margin: Oper Income % Margin: Income Bef Tax % Margin: Income Aft Tax % Margin: 4.15 4.15 53.79% 53.79% 1.53 52.18% 52.18% 0.74 0.74 Curr Mkt Cap (m): (+) Tot Debt Cap, LFY (m): (-) Cash & Equiv, LFY (m): (=) Curt EV, LFY (m): 1.53 1.53 1.54 36.02% 36.93% 36.93% 0.74 Revenue/Shr (dil.): EPS Excl Extra (dil.): EPS Incl Extra (dil.): EPS Normalized (dil.) Div/Shr Comm Stk Primary: Tot Cash & ST Invest/Shr: Cash Flow/Shr (dil.): Bk Val/Shr, Tot Eqty: Tang Bk Value, Tot Eqty: 1.53 1.54 1.22 0.69 1.21 GROWTH RATES (%) FINANCIAL STRENGTH 1.58 1.58 LTM LFY 0.98 1.99 1.99 LFI (1.40%) LFI LFY Revenue, %Yr/Yr: 28.65% 28.65% 4.30 4.30 Quick Ratio: 1.96 Revenue 4.30 4.30 Curr Ratio: 2.25 5 Yr. Growth Rate: 8.38% 1.96 2.25 37.24 21.06 37.24 14.82% DIVIDENDS 10 Yr. Growth Rate: EPS, %Yr/Yr: LT Debt/Tot Eqty: LT Debt/Tot Assets: Tot Debt/Tot Eqty: 21.06 (10.40%) 48.62% 48.98% 38.64 38.64 EPS Dividend Yield: Annual Dividend - 5 Yr. Avg: Dividend 5 Yr. Growth Rate: 15.76% 0.43 72.06% 5 Yr. Growth Rate: 10 Yr. Growth Rate: 99.42% MANAGEMENT EFFECTIVENESS (%) 23.33% Dividend Payout Ratio Dividend LFI LTM LFY LFI: 11.56% 97.85% 80.40% 80.40% %Yr/Yr, LFY: 5 Yr. Growth Rate: 10 Yr. Growth Rate: 302.42% 99.42% LTM: LFY: Frequency ROC Tot LT Cap: ROE Comm Eqty: ROA Tot Assets: 25.17% 39.76% 35.37% 20.37% 25.17% 39.76% 21.98% 21.98% Semi-annual dividend Last Dividend EMPLOYEES Decl: 1.43 No. of Employees Pay Date: Ex-Date: 02-Oct-2020 31-Aug-2020 Anul LTM LFY Tot Revenue/Employee RATIOS AND ANALYTICS(LFI: 30-JUN-2020 LFY: 30-JUN-2020) PRICE & VOLUME (AUD) INCOME STATEMENT (USD, M) VALUATION RATIOS (USD) Price LFI LFY Anul LFI LTM LFY 6.335.00 2.75 2.71 Close 52 Wk High: 52 Wk Low: 15.95 (24-Sep-2020) 19.56 (28-Aug-2020) 8.13 (17-Oct-2019) Total Revenue: EBITDA: EBIT: LTM 12,820.00 8,290.00 6,890.00 6,690.00 2.71 7.36 4,153.00 3,410.00 12,820.00 8,306.00 6,890.00 6,690.00 4.735.00 4,735.00 Price % Change 3.263.00 Income Before Tax: Income After Tax: 7.36 7.33 5.65 1-Day: 4.735.00 Curr Price/Rev/Shr: Curr P/E Excl Extra, LTM: P/E Excl. Extra Items: Curr P/E Normalized, LFY: Curr Price/CF/Shr: Curr Price/Tang Bk, Tot Eqty: Curr EV/Tot Revenue (LFI/LTM): Curr EV/EBITDA (LFI/LTM): Curr EV/EBIT (LFI/LTM): 5.76 (0.19%) (14.06%) 5.66 1M: 2,282.00 2.282.00 3,090.66 4,735.00 Income Avail Comm: Dilut Shrs Out Avg: 2.63 2.63 2.73 3M: 12.01% 3,090.04 3,090.04 6M: 63.93% Income 4.22 1Y: YTD: Bef Tax, Normalized, LFY: Aft Tax, Normalized, LFY: Avail Comm, Normalized, LFY: 82.49% 49.20% 11,811,890.00 10.35 (M) 6,706.00 4,756.00 4,756.00 5.08 34,739.99 5,126.00 10 Day Avg Daily Vol: 90 Day Avg Vol (M): Beta 5Yr Monthly Curr Mkt Cap (m): (+) Tot Debt Cap, LFI (m): (-) Cash & Equiv, LFI (m) (=) Curr EV, LFI (m): 4,855.00 0.88 PROFITABILITY RATIOS (%) LFI LTM PER SHARE LFY 55.21% Curr EV/Tot Revenue (LFY): Curr EV/EBITDA (LFY): Curr EV/EBIT (LFY): 55.21% LFI LTM LFY 64.66% 64.79% 55.52% 65.56% 53.07% 51.51% 35,010.99 2.73 4.22 5.08 34,739.99 5,126.00 4,855.00 35,010.99 2.05 Gross Profit % Margin: EBITDA % Margin: Oper Income % Margin: Income Bef Tax % Margin: Income Aft Tax % Margin: 4.15 4.15 53.79% 53.79% 1.53 52.18% 52.18% 0.74 0.74 Curr Mkt Cap (m): (+) Tot Debt Cap, LFY (m): (-) Cash & Equiv, LFY (m): (=) Curt EV, LFY (m): 1.53 1.53 1.54 36.02% 36.93% 36.93% 0.74 Revenue/Shr (dil.): EPS Excl Extra (dil.): EPS Incl Extra (dil.): EPS Normalized (dil.) Div/Shr Comm Stk Primary: Tot Cash & ST Invest/Shr: Cash Flow/Shr (dil.): Bk Val/Shr, Tot Eqty: Tang Bk Value, Tot Eqty: 1.53 1.54 1.22 0.69 1.21 GROWTH RATES (%) FINANCIAL STRENGTH 1.58 1.58 LTM LFY 0.98 1.99 1.99 LFI (1.40%) LFI LFY Revenue, %Yr/Yr: 28.65% 28.65% 4.30 4.30 Quick Ratio: 1.96 Revenue 4.30 4.30 Curr Ratio: 2.25 5 Yr. Growth Rate: 8.38% 1.96 2.25 37.24 21.06 37.24 14.82% DIVIDENDS 10 Yr. Growth Rate: EPS, %Yr/Yr: LT Debt/Tot Eqty: LT Debt/Tot Assets: Tot Debt/Tot Eqty: 21.06 (10.40%) 48.62% 48.98% 38.64 38.64 EPS Dividend Yield: Annual Dividend - 5 Yr. Avg: Dividend 5 Yr. Growth Rate: 15.76% 0.43 72.06% 5 Yr. Growth Rate: 10 Yr. Growth Rate: 99.42% MANAGEMENT EFFECTIVENESS (%) 23.33% Dividend Payout Ratio Dividend LFI LTM LFY LFI: 11.56% 97.85% 80.40% 80.40% %Yr/Yr, LFY: 5 Yr. Growth Rate: 10 Yr. Growth Rate: 302.42% 99.42% LTM: LFY: Frequency ROC Tot LT Cap: ROE Comm Eqty: ROA Tot Assets: 25.17% 39.76% 35.37% 20.37% 25.17% 39.76% 21.98% 21.98% Semi-annual dividend Last Dividend EMPLOYEES Decl: 1.43 No. of Employees Pay Date: Ex-Date: 02-Oct-2020 31-Aug-2020 Anul LTM LFY Tot Revenue/Employee
