Financial Analysis of a Public Company

Financial Analysis of a Public Company

Financial Analysis of a Public Company. Use the same company (and group) that you are analyzing for your assignments; it must
be a publicly traded, non-financial, non-utility, dividend-paying company.
2. (20 points) In your own words, write 2-4 pages about the company describing:
a. An introduction to the company (history, products and services, recent corporate
events, etc.)
b. A description of the company’s industry and market (including main competitors,
suppliers and customers, presence in global markets, etc.)
c. The company’s recent (the past 3-5 years) financial performance (total revenue,
sales growth, net income, profit margin, EPS, etc.)
3. (60 points) In your own words, write 5-10 pages about the company describing:
a. The cost of capital:
i. What is the company’s cost of capital?
ii. How does it compare to competitors and industry peers?
iii. How does the cost of capital in this industry compare to other industries?
b. The capital structure and leverage:
i. What is the company’s capital structure (e.g., debt-to-equity ratio)?
ii. How does it compare to competitors and industry peers?
iii. How does the capital structure in this industry compare to other industries?

 

 

How do you do a financial analysis of a company?

Financial Analysis of a Public Company

 

c. The distribution policy:
i. Does the firm pay regular dividends? Extraordinary dividends?
ii. Has the firm had any share repurchase plans?
iii. How do these policies compare to competitors and industry peers?
iv. How does the distribution policy in this industry compare to other industries?
4. You may use the information available on the company’s website, Yahoo! Finance or
Google Finance website, SEC EDGAR website (https://www.sec.gov/edgar), which
contains company filings and Bloomberg terminals. You may also perform a news search
through the NewsBank or Nexis Uni platforms provided by John B. Coleman Library.
Finally, you can find a wealth of industry data from Dr. Aswath Damadaran’s website at
NYU: https://pages.stern.nyu.edu/~adamodar/New_Home_Page/data.html.
5. (20 points) Make sure to complete and submit (individually) your peer evaluation reports.
The last 20 points depend on your average peer evaluation score and your total score on
items 2 and 3.