Provide a summary of the company’s operations by answering the following questions:
• What segments does the company operate in? • What are the sales and profits for each segment? • What type of products/major brands are associated with each segment? • What are the company’s total sales by geography? • Who are the company’s main competitors? • When was the company founded? • Where is the company headquartered? • What is the stock ticker? • What exchange is it traded on? Hint: Most of this info can be found on Factset, the company website, and in the most recent 10K.
Task 4– Company organization Provide a summary of the company’s organization by answering the following questions: • Who are the top 5 shareholders and what % of the company do they control? • How many members do they have on their board of directors? How many are independent directors? • Provide a brief bio including compensation of the CEO, CFO, and Chairman of the Board • Has the company been criticized/gotten in trouble for principal-agent problems including regulatory violations in the past 5 years? • Any other governance news or issues Hint: Most of this info can be found in a proxy statement or in the news.
Task 5 – Financial Statement Analysis Provide a complete pro-forma analysis with the last three years– Income Statement, Balance Sheet, and Cash Flows including OCF, NWC, taxes, etc. Provide one year of forward projections for your company using analysts’ estimates The pro-forma analysis should be well organized, complete, and readable so that an executive could quickly scan to view your assumptions as well as historical performance. Hint: Historical financial statements can be pulled in a matter of seconds on Factset. Analysts’ forecasts can also be found on FactSet.
Task 6 – Debt Valuation Provide a summary of all long-term debt instruments outstanding including the number of total debt instruments, the sum of total debt outstanding, average yields, maturity dates, and the credit rating, YTW, and maturity date. Calculate by hand the YTM of one of the debt instruments outstanding. Does the YTM match what is given on Factset? Briefly discuss whether you think this company has an appropriate amount of debt, comparing their debt levels to close competitors and/or historical levels.
