Team Project#16
FD Marking Scheme
You are the new finance manager of FD Group a holding company with diverse investments in different industries. The Board of Director is asking you for your opinion / analysis of the following holdings with their concerns.
[Note: Assuming market is efficient; therefore, market multiples have high predictive power]
Requirements:
c). Identify the top 2 Cashcow firms as measured by FCF i.e., able to generate the highest FCF and why?
(50-70 Words)
Note: When you are answering above questions, try to focusing on the numbers particularly market multiples (e.g., P/E, P/B, etc). Do not discuss industry characteristics e.g., Health is important so the market will grow.
You are welcome to submit any other exhibits / attachments to support your works as well.
EXHIBIT 1 | Common-Sized Financial Data and Ratios - B D E G H 1 J K L M N N 0 16.1 D 8.1 11.7 7.6 8.a 7.9 3.0 5.4 25 32.1 OOM DO 55.6 4.3 11.9 43 1.3 2.4 112 81.7 160 72 1.0 7.4 13 29 0.0 100.0 100.0 272 5 14.9 422 679 19.0 13.0 2.0 1.3 9.5 5.5 728 87.6 73 8.8 1.3 2.4 0.0 1.2 18.6 0.0 100.0 100.0 548 nin 14.8 8.6 782 76 9.3 44 0.0 100.0 16.2 23 38,6 2.6 59.7 24.4 49 11.1 0.0 100.0 7.0 17.0 16.7 25 43.1 522 50.8 5.9 93 5.5 10.9 18.9 23.7 14.4 17.8 149 1.4 7.0 6.9 326 529 521 62.5 13.6 13.7 3.1 11,8 89 19 21.4 223 0.0 0.0 3.0 1000 100.0 100.0 4.6 1.4 24.5 15 320 57.0 2.0 9.0 0.0 100.0 0.6 1.1 4.6 9.9 0.B 0.8 0.7 3.8 6.6 155 14.1 346 0.1 7.2 76.8 371 0.7 0.0 100.0 100.0 ON NO 5.4 NN OS 3.8 46.1 3.1 100.0 14.6 0.0 100.0 06 0.0 100.0 22 0.5 9.1 09 6.7 1.5 0.0 1.6 85 6.1 Assets A Cash & Short-Term Investments 242 Receivables 128 Inventories 70 Current Assets Other 72 Current Assets-Total 51.2 Net Fixed Assets 19,6 Assets Other 5.9 Intangibles 222 Investments & Advances 0.1 Assets-Total 100.0 Liabilities & Equity Accounts Payable 98 Debt in Current Liabilities Income Taxes Payable 2 Current Liabilities-Other 13.0 Current Liabilities-Total 20.1 LT Debt 4.8 Deferred Taxes 0.8 Liabilities Other 8.6 Liabilities-Total 403 Stockholders' Equity 59.7 Total Liabilities & Equity 100.0 Income/Expenses Sales.Net 100.0 Cost of Goods Sold 23.9 Gross Profit 70.1 SGSA Expense 44.5 Depreciation 45 Earnings Before Interest & Taxes 272 Nonoperating income Expense) 07 Interest income (Expense) 10.71 Special Items Income (Expense) (0.09 Pretax income 27.1 Income Taxes Total 2.1 Net Income (LOS) 18.0 NOOMOO 8.7 7.4 9.1 38.3 0.0 0.0 0.0 0.9 1.7 0.0 13.7 226 122 24.4 009 512 0.0 22 10.7 1.9 0.0 0.7 8.9 83.5 27.1 721 16.5 72.9 270 100.0 100.0 100.0 35.1 0.1 0.0 14,7 49.0 569 21.4 5.9 10.2 7.3 448 552 100.0 Rob DO 18.0 0.0 0.0 15.3 333 0.0 0.0 3.7 36.0 03.1 100,0 22.6 0.0 0.0 17.5 40 2 7.4 59 11.0 54.7 353 100.0 8.5 8.4 85 0.0 3.5 5.6 1.2 09 1.0 7.1 19,5 14.4 16.7 32.4 29.4 18.3 21.7 8.9 120 3.1 33 12.4 14.6 59.5 71.8 51.5 40.5 28.2 48.5 100.0 100.0 100.0 18.0 17.9 6.5 1.6 1.1 0.9 10.1 5.1 357 25.5 19.7 200 3.0 2.5 3.2 589 59.7 41.1 403 100.0 100.0 14.2 41.3 50 10.9 75.9 24.1 100.0 1.4 4.8 0.8 14.9 0.3 nm 5.1 7.5 28.3 144 11.0 15.0 3.3 0.7 17.5 375 645 62.5 355 100.0 100.0 9.5 0.2 1070 (70) 1000 8.9 100.0 100.0 11.1 889 45.7 758 100.0 753 247 12.0 6.1 9.7 RO 299 25 4.1 1000 100.0 53.0 40.1 61.5 173 50.5 0.2 2.0 9.0 29 0.3 20 00 02 0.0 228 92 78 3.5 15.0 58 225 325 1.1 0.7 (63) 26.7 5.1 21.6 100.0 810 19.0 9.7 0.7 0.0 0.4 00 0.0 90 20 62 100.0 70,0 20.1 23.1 1.8 42 0.7 0.0 (0.3) 4.6 13 33 100.0 69.5 30.5 21.8 37 50 0.1 0.3 10.3) 4.5 1.0 20 242 16.0 1.1 62 0.3 1.5 0.1 5.1 (3.4) 85 1000 1000 100.0 829 61.0 51.6 17.1 39.0 48.4 73 24.8 38.9 5.8 26 40 11.7 59 0.1 0.6 0.1 1.0 1.1 1.0 00 0.0 (1.0) 3.1 11.2 5.1 1.2 3.0 20 84 3.4 1000 100.0 75,3 247 170 225 1.5 2.7 5.3 7.7 0.8 0.0 05 1.0 0.0 10.2) 5.6 6.5 20 2.4 3.6 68 DO 100.0 100.0 49.7 40,5 50.3 59.5 23.0 39.7 7.0 20.2 15.6 1.3 0.4 1.9 1.6 0.0 (0.1) 19.7 14.4 7.1 5.6 128 3.9 0.4 33 (0.8) 29 10 (0.1) EXHIBIT 1 | Common-Sized Financial Data and Ratios (Continued) Market Data B D E F G H 1 J K L M N 0 0.65 Beta Price/Earnings Price to Book Dividend Payout Liquidity 0.85 22 32 3.08 46.28 22.29 5.93 38.21 0.55 0.60 16.85 19.73 13.99 2.56 33.16 0.00 1.20 1.05 30.48 41.85 17.46 5.13 0.00 0.00 1.70 27 32 nmt 0.00 0.51 1.15 21.63 30.97 2.36 1.91 0.00 101.46 1.10 33.78 1.80 86.16 1.00 1.00 13.64 23.01 4.65 1.85 15.30 70.62 20.54 0.85 1.10 18.97 24.19 4.23 3.84 21.56 14.85 0.85 0.90 1329 2.07 3.09 37.53 30.81 1.96 1.42 1.50 1.13 0.92 0.47 3.35 2.77 1.20 1.01 2.63 2.43 1.57 nim 1.49 0.48 1.91 1.15 1.94 1.00 1.63 0.87 1.77 1.03 0.90 0.17 1.69 0.94 0.88 0.69 0.55 0.39 3.08 7.05 4.67 0.93 5.47 2.86 12.60 21 87 1.72 7.44 67.96 74.78 18.68 12 23 8.28 12 67 30.68 12.03 13.56 nmt 29.42 2.42 72.11 6.54 6.75 8.68 1.43 7.11 11.64 1.86 3.89 5.82 3.59 7.69 4.42 192.73 7.50 4.50 5.86 8.31 2.77 33.35 43.48 10.9 8.50 3.43 2.59 7.63 Current Ratio Quick Ratio Asset Management Inventory Turnover Receivables Tumover Fixed Assets Tumover Debt Management Total Debt Total Assets LT Debu Shareholders' Equity Interest Coverage Atter Tax DuPont Analysis Net Profit margin Asset Turnover Return on Equity 56.94 5.34 8.00 27.34 14.99 5110 10.66 310.28 32.57 6.25 0.00 2.18 0.00 0.00 7.79 0.00 nm 191.1993.00 742 42.78 21.01 171.21 9.52 1.56 18.36 2521 45,32 77.00 2.98 8.62 14.45 18.29 26.16 29 54 47.92 6934 8.86 4.92 1522 25.81 23.04 33.66 7.83 6.69 6.49 455 21.58 17.97 0.93 26.75 0.44 16.64 15.00 0.97 83.97 5.78 2 23 15.95 6.18 231 46.92 3.33 1.11 5.44 8.50 256 nim 2 53 1.43 10.58 1.87 0.73 5.79 1.96 8.17 1.20 1.11 5.71 28.30 3.30 1.09 7.36 3.59 4.02 254 1.47 20.79 14.47 12.66 8.86 0.48 0.85 9.86 20.89 Sources of data: S&P's Research Insight; Value Line Investment Survey nm not a meaningful figure. EXHIBIT 1 | Common-Sized Financial Data and Ratios - B D E G H 1 J K L M N N 0 16.1 D 8.1 11.7 7.6 8.a 7.9 3.0 5.4 25 32.1 OOM DO 55.6 4.3 11.9 43 1.3 2.4 112 81.7 160 72 1.0 7.4 13 29 0.0 100.0 100.0 272 5 14.9 422 679 19.0 13.0 2.0 1.3 9.5 5.5 728 87.6 73 8.8 1.3 2.4 0.0 1.2 18.6 0.0 100.0 100.0 548 nin 14.8 8.6 782 76 9.3 44 0.0 100.0 16.2 23 38,6 2.6 59.7 24.4 49 11.1 0.0 100.0 7.0 17.0 16.7 25 43.1 522 50.8 5.9 93 5.5 10.9 18.9 23.7 14.4 17.8 149 1.4 7.0 6.9 326 529 521 62.5 13.6 13.7 3.1 11,8 89 19 21.4 223 0.0 0.0 3.0 1000 100.0 100.0 4.6 1.4 24.5 15 320 57.0 2.0 9.0 0.0 100.0 0.6 1.1 4.6 9.9 0.B 0.8 0.7 3.8 6.6 155 14.1 346 0.1 7.2 76.8 371 0.7 0.0 100.0 100.0 ON NO 5.4 NN OS 3.8 46.1 3.1 100.0 14.6 0.0 100.0 06 0.0 100.0 22 0.5 9.1 09 6.7 1.5 0.0 1.6 85 6.1 Assets A Cash & Short-Term Investments 242 Receivables 128 Inventories 70 Current Assets Other 72 Current Assets-Total 51.2 Net Fixed Assets 19,6 Assets Other 5.9 Intangibles 222 Investments & Advances 0.1 Assets-Total 100.0 Liabilities & Equity Accounts Payable 98 Debt in Current Liabilities Income Taxes Payable 2 Current Liabilities-Other 13.0 Current Liabilities-Total 20.1 LT Debt 4.8 Deferred Taxes 0.8 Liabilities Other 8.6 Liabilities-Total 403 Stockholders' Equity 59.7 Total Liabilities & Equity 100.0 Income/Expenses Sales.Net 100.0 Cost of Goods Sold 23.9 Gross Profit 70.1 SGSA Expense 44.5 Depreciation 45 Earnings Before Interest & Taxes 272 Nonoperating income Expense) 07 Interest income (Expense) 10.71 Special Items Income (Expense) (0.09 Pretax income 27.1 Income Taxes Total 2.1 Net Income (LOS) 18.0 NOOMOO 8.7 7.4 9.1 38.3 0.0 0.0 0.0 0.9 1.7 0.0 13.7 226 122 24.4 009 512 0.0 22 10.7 1.9 0.0 0.7 8.9 83.5 27.1 721 16.5 72.9 270 100.0 100.0 100.0 35.1 0.1 0.0 14,7 49.0 569 21.4 5.9 10.2 7.3 448 552 100.0 Rob DO 18.0 0.0 0.0 15.3 333 0.0 0.0 3.7 36.0 03.1 100,0 22.6 0.0 0.0 17.5 40 2 7.4 59 11.0 54.7 353 100.0 8.5 8.4 85 0.0 3.5 5.6 1.2 09 1.0 7.1 19,5 14.4 16.7 32.4 29.4 18.3 21.7 8.9 120 3.1 33 12.4 14.6 59.5 71.8 51.5 40.5 28.2 48.5 100.0 100.0 100.0 18.0 17.9 6.5 1.6 1.1 0.9 10.1 5.1 357 25.5 19.7 200 3.0 2.5 3.2 589 59.7 41.1 403 100.0 100.0 14.2 41.3 50 10.9 75.9 24.1 100.0 1.4 4.8 0.8 14.9 0.3 nm 5.1 7.5 28.3 144 11.0 15.0 3.3 0.7 17.5 375 645 62.5 355 100.0 100.0 9.5 0.2 1070 (70) 1000 8.9 100.0 100.0 11.1 889 45.7 758 100.0 753 247 12.0 6.1 9.7 RO 299 25 4.1 1000 100.0 53.0 40.1 61.5 173 50.5 0.2 2.0 9.0 29 0.3 20 00 02 0.0 228 92 78 3.5 15.0 58 225 325 1.1 0.7 (63) 26.7 5.1 21.6 100.0 810 19.0 9.7 0.7 0.0 0.4 00 0.0 90 20 62 100.0 70,0 20.1 23.1 1.8 42 0.7 0.0 (0.3) 4.6 13 33 100.0 69.5 30.5 21.8 37 50 0.1 0.3 10.3) 4.5 1.0 20 242 16.0 1.1 62 0.3 1.5 0.1 5.1 (3.4) 85 1000 1000 100.0 829 61.0 51.6 17.1 39.0 48.4 73 24.8 38.9 5.8 26 40 11.7 59 0.1 0.6 0.1 1.0 1.1 1.0 00 0.0 (1.0) 3.1 11.2 5.1 1.2 3.0 20 84 3.4 1000 100.0 75,3 247 170 225 1.5 2.7 5.3 7.7 0.8 0.0 05 1.0 0.0 10.2) 5.6 6.5 20 2.4 3.6 68 DO 100.0 100.0 49.7 40,5 50.3 59.5 23.0 39.7 7.0 20.2 15.6 1.3 0.4 1.9 1.6 0.0 (0.1) 19.7 14.4 7.1 5.6 128 3.9 0.4 33 (0.8) 29 10 (0.1) EXHIBIT 1 | Common-Sized Financial Data and Ratios (Continued) Market Data B D E F G H 1 J K L M N 0 0.65 Beta Price/Earnings Price to Book Dividend Payout Liquidity 0.85 22 32 3.08 46.28 22.29 5.93 38.21 0.55 0.60 16.85 19.73 13.99 2.56 33.16 0.00 1.20 1.05 30.48 41.85 17.46 5.13 0.00 0.00 1.70 27 32 nmt 0.00 0.51 1.15 21.63 30.97 2.36 1.91 0.00 101.46 1.10 33.78 1.80 86.16 1.00 1.00 13.64 23.01 4.65 1.85 15.30 70.62 20.54 0.85 1.10 18.97 24.19 4.23 3.84 21.56 14.85 0.85 0.90 1329 2.07 3.09 37.53 30.81 1.96 1.42 1.50 1.13 0.92 0.47 3.35 2.77 1.20 1.01 2.63 2.43 1.57 nim 1.49 0.48 1.91 1.15 1.94 1.00 1.63 0.87 1.77 1.03 0.90 0.17 1.69 0.94 0.88 0.69 0.55 0.39 3.08 7.05 4.67 0.93 5.47 2.86 12.60 21 87 1.72 7.44 67.96 74.78 18.68 12 23 8.28 12 67 30.68 12.03 13.56 nmt 29.42 2.42 72.11 6.54 6.75 8.68 1.43 7.11 11.64 1.86 3.89 5.82 3.59 7.69 4.42 192.73 7.50 4.50 5.86 8.31 2.77 33.35 43.48 10.9 8.50 3.43 2.59 7.63 Current Ratio Quick Ratio Asset Management Inventory Turnover Receivables Tumover Fixed Assets Tumover Debt Management Total Debt Total Assets LT Debu Shareholders' Equity Interest Coverage Atter Tax DuPont Analysis Net Profit margin Asset Turnover Return on Equity 56.94 5.34 8.00 27.34 14.99 5110 10.66 310.28 32.57 6.25 0.00 2.18 0.00 0.00 7.79 0.00 nm 191.1993.00 742 42.78 21.01 171.21 9.52 1.56 18.36 2521 45,32 77.00 2.98 8.62 14.45 18.29 26.16 29 54 47.92 6934 8.86 4.92 1522 25.81 23.04 33.66 7.83 6.69 6.49 455 21.58 17.97 0.93 26.75 0.44 16.64 15.00 0.97 83.97 5.78 2 23 15.95 6.18 231 46.92 3.33 1.11 5.44 8.50 256 nim 2 53 1.43 10.58 1.87 0.73 5.79 1.96 8.17 1.20 1.11 5.71 28.30 3.30 1.09 7.36 3.59 4.02 254 1.47 20.79 14.47 12.66 8.86 0.48 0.85 9.86 20.89 Sources of data: S&P's Research Insight; Value Line Investment Survey nm not a meaningful figure
