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
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 |