Company Analysis:
• What do you think about the company, its strategy, and its businesses? Important recent company news?
• Is the company selling products or services in industries that are growing or shrinking?
• Is the company expanding market share via new customers or new regions?
• What are some products or areas that the company is entering or exiting?
• Company Management
• What is your view of the management – structure, people, tenure, etc.?
• Examine insider holdings of company stock
• Examine ESG rating. How does this compare with competitors?
Porter’s Analysis
Report the Herfindahl Hirschhorn Index for the industry. Is it competitive?
• Stock Price Performance / Technical Analysis:
• How has the stock price performed over the past year? Three years? (Include charts as appropriate)
• Has the price of the stock been volatile? (Beta, standard deviation, Sharpe or other ratios, Risk Grades)
• Conduct trend lines, moving average, volume or other technical analysis (show charts)
• Compare with competitors, sector, and S&P 500
Dividend Policy:
• What has been going on with the company’s dividend policies? Predict future trends.
• Dividend coverage
Total Return Analysis:
• What is the total return (including dividends) over the past year?
• Three years?
• Compare with competitors
• Examine the growth duration versus its main competitor.
Financial Analysis:
• Examine the historical financials of the company (income statement, balance sheet, cash flow statement)
• Are earnings (profits / revenue / sales / margins) growing or shrinking? How rapidly? Any surprises?
• Predict future trends including direction, timing and momentum
Key Ratio Analysis (based on CFRA Industry Survey Key Ratios): Examine historical and current CFRA Industry key ratios and trends. Compare with competitors.
Comparison with Major Competitors:
• Size,similarities/dissimilarities in products/services, regions of coverage, customer focus, etc.
• Are the competitors’ sales / profits growing faster or slower than your company?
• Conduct a multiples comparisons: P/B; P/E; EV/EBITDA (Include charts as appropriate)
• Du Pont analysis
Valuation Analysis (Use Valuation Workbook).
• Conduct multiples valuation based on projected P/E, P/S.
• DCF Valuations (OCF/FCFE,FCFF)
• CFROI and valuation
Portfolio Considerations
• Original purchase rationale
• Portfolio considerations
o Other holdings in sector
o Attach correlation matrix (between stock and current holdings within sector)
o Year to date performance of each holding within the sector.
o Are we over or under weight?
Risk Factors
• Pro’s and Con’s to the recommendation
• Critical issues (2-3 key risk factors)
• Other analyst ratings
Overall Opinion / Conclusion
• Summarize your analysis giving an overall opinion of buy/hold/sell and why.
• Establish target price
Paper: Remember to continue use of active voice and good grammar (See Chance’s hints on Canvas).Use the proscribed binder. Use the following typed physical tabs:
Tab A: Valuation Workbook
Tab B: Financials
Tab C: Power points
Tab D: CFRA Key Ratios (Attach the pages from the CFRA Industry Survey)
Company Analysis:
• What do you think about the company, its strategy, and its businesses? Important recent company news?
• Is the company selling products or services in industries that are growing or shrinking?
• Is the company expanding market share via new customers or new regions?
• What are some products or areas that the company is entering or exiting?
• Company Management
• What is your view of the management – structure, people, tenure, etc.?
• Examine insider holdings of company stock
• Examine ESG rating. How does this compare with competitors?
Porter’s Analysis
Report the Herfindahl Hirschhorn Index for the industry. Is it competitive?
• Stock Price Performance / Technical Analysis:
• How has the stock price performed over the past year? Three years? (Include charts as appropriate)
• Has the price of the stock been volatile? (Beta, standard deviation, Sharpe or other ratios, Risk Grades)
• Conduct trend lines, moving average, volume or other technical analysis (show charts)
• Compare with competitors, sector, and S&P 500
Dividend Policy:
• What has been going on with the company’s dividend policies? Predict future trends.
• Dividend coverage
Total Return Analysis:
• What is the total return (including dividends) over the past year?
• Three years?
• Compare with competitors
• Examine the growth duration versus its main competitor.
Financial Analysis:
• Examine the historical financials of the company (income statement, balance sheet, cash flow statement)
• Are earnings (profits / revenue / sales / margins) growing or shrinking? How rapidly? Any surprises?
• Predict future trends including direction, timing and momentum
Key Ratio Analysis (based on CFRA Industry Survey Key Ratios): Examine historical and current CFRA Industry key ratios and trends. Compare with competitors.
Comparison with Major Competitors:
• Size,similarities/dissimilarities in products/services, regions of coverage, customer focus, etc.
• Are the competitors’ sales / profits growing faster or slower than your company?
• Conduct a multiples comparisons: P/B; P/E; EV/EBITDA (Include charts as appropriate)
• Du Pont analysis
Valuation Analysis (Use Valuation Workbook).
• Conduct multiples valuation based on projected P/E, P/S.
• DCF Valuations (OCF/FCFE,FCFF)
• CFROI and valuation
Portfolio Considerations
• Original purchase rationale
• Portfolio considerations
o Other holdings in sector
o Attach correlation matrix (between stock and current holdings within sector)
o Year to date performance of each holding within the sector.
o Are we over or under weight?
Risk Factors
• Pro’s and Con’s to the recommendation
• Critical issues (2-3 key risk factors)
• Other analyst ratings
Overall Opinion / Conclusion
• Summarize your analysis giving an overall opinion of buy/hold/sell and why.
• Establish target price
Paper: Remember to continue use of active voice and good grammar (See Chance’s hints on Canvas).Use the proscribed binder. Use the following typed physical tabs:
Tab A: Valuation Workbook
Tab B: Financials
Tab C: Power points
Tab D: CFRA Key Ratios (Attach the pages from the CFRA Industry Survey)
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