Question
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
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 dupont analysis 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? your company ( 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 it average price.
g.) investment decisions
overall, this company is long term ( buy/ review again at lower price / bust?
Why? Give 5 good reason
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2.
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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 revenues and investments? | ||||
| Gross Profit Margin | 31% | 31% | 30% | 29% | 30% |
| Net Profit Margin, 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 we appear 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 x Asset 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 |
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