American express co

937 views
867 views

Published on

Financial Analysis Report of American Express Co. Complete Fundamental and Technical Analysis

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
937
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
15
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

American express co

  1. 1. SRI KRISHNA CONSULTING COMPANY FINALYTICS American Express Co Exclusive Fundamental Analysis of US Stocks Prepared and Edited By‐ SRI KRISHNA CONSULTING Download more reports from http://www.srikrishnaconsulting.com Disclaimer  The information, opinions, estimates and forecasts contained in this document have been arrived at or obtained from public sources believed to be reliable and in good faith which has not been independently verified and no warranty, express or implied, is made as to their accuracy, completeness or  correctness.  For more information about this sample and our other services, please write to info@srikrishnaconsulting.com Monday, June 04, 2012
  2. 2. Description Page Summary 3 Latest Result 3 Valuation Matrix 3 ROE Analysis 3 Income Statement 4 Balance Sheet 5 Cash flow Statement 6 Quarterly Result 6 Growth Analysis 7 Comparative Analysis 8 Income Statement 8 Balance Sheet 8 Index Analysis 9 Income Statement 9 Balance Sheet 9 Ratio Analysis 10 Annual 10 Quarterly 11 TTM Analysis 11 Valuation and Projection 12 CONTENT Technical Analysis 13 About Sri Krishna Consulting We provide financial research and analytics services to our worldwide client. Our research is customized and  proprietary to our clients and often provided in client formats and templates. Our expert team of analyst add  crucial values to client proprietary methodology and add efficiencies. We have four areas of practice: ‐‐Equity Research ‐‐Credit Research ‐‐Commodities Research ‐‐Consultancy and Strategy. With a zeal to perform, we adopt best quality driven process and approaches. Our quality driven process and  approaches have already give us a place as a top‐tire provider of Financial Research and Analytics. Financial Research Team We have a robust investment research team with expertise in the financial domain. These professionals  include CFAs, CAs and MBAs specializing in finance, with expertise in investment and retail banking, equity  research, financial and sectoral analysis, etc. Our delivery teams are the core of our business, and we maintain  their exceptional quality by selecting personnel on the basis of educational and functional experience. Our HR  teams are always searching for outstanding performers. Contact Us: info@srikrishnaconsulting.com © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 2
  3. 3. SummaryLatest Results At a glance Annual Quarterly TTM Business Summary % Change % Change % Change 12/31/2011 2012 Q1 2012 Q1 Sales 32282.00 7.59 8188.00 (1.55) 32846.00 1.75 American Express Company is primarily engaged in the  EBITDA 10005.00 9.61 2601.00 0.04 10243.00 0.48 business of providing travel related services, financial  Adjusted PAT 4899.00 20.75 1256.00 0.05 4978.00 1.61 advisory services and international banking services  Reported PAT 4935.00 21.64 1256.00 0.05 5014.00 1.60 throughout the world. EPS 3.77 30.83 1.07 0.06 4.27 1.35 Credit Services IndustryValuation Data Latest 10 K filing 12/31/2011 Latest 10 Q Filing 3/31/2012 Company Industry Next Report Date 7/18/2012 P/E(TTM) 12.69 27.46 No. of Employee 62,500 No. Equity Share  P/E(Forward) 12.33 NA 1173 (Million) PEG Ratio 1.05 NA Price 53.43 Price/Sales 1.87 7.33 Market Cap (Million) 62673.39 Dividend Yield(%) 1.50 1.85 Total Debt 126497.00 Price/Book 3.13 4.15 Enterprise Value 189170.39 Price/Free Cash Flow 5.43 0.95 Price/Enterprise Value 0.33 NA Market Data Exchange Traded NYSE Ticker AXPROE Analysis 52 Week High 61.42 52 Week Low 41.3 Particulars 2007 2008 2009 2010 2011 Short Interest Ratio 2.29 Reported PAT / PBT 0.70 0.75 0.75 0.68 0.71 Beta 1.83 Normalized PAT / PBT 0.59 0.67 0.53 0.58 0.65 Average Target Price 63.33 PBT / PBIT 0.59 0.50 0.56 0.71 0.75 One Year Return 8.42 PBIT / Sales 0.31 0.22 0.19 0.28 0.29 Three Months Return 0.43 Sales / Total Assets 0.25 0.29 0.23 0.22 0.23 One Month Return ‐11.1 Total Assets / Net  Worth(Without Treasury  Analyst Rating Stock) 1126.50 917.60 789.52 823.07 742.02 Reported ROE (Excluding  Treasury Stock) 36.38 22.79 14.79 25.00 26.26 Normalized ROE(Excluding  Strong  Treasury Stock) 30.47 20.38 10.39 21.43 23.96 Buy  11 Hold  Reported ROE (Including  Treasury Stock) NA NA NA NA NA 8 Normalized ROE(Including  Treasury Stock) NA NA NA NA NA ROE 30.47  83.57 23.96  21.43  Ownership (%) 20.38  42 10.39  0.00  0.00  0.00  0.00  0.00  0.92 1 2007 2008 2009 2010 2011 Institutional  Top 10  Mutual Fund  5%/Insider  Ownership  Institutions  Ownership  Ownership  (%)  (%)  (%)  (%)  Normalized ROE(Excluding Treasury Stock) Normalized ROE(Including Treasury Stock) © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 3
  4. 4. Income Statement Particulars (in Millions) 2007 2008 2009 2010 2011 Sales 31540.00 31920.00 26543.00 30005.00 32282.00 Operating Income 31,540 31,920 32,282 12000.00  cost of goods sold (601.00) (629.00) (930.00) (741.00) (729.00) 30,005 26,543 10000.00  Gross profit 32141.00 32549.00 27473.00 30746.00 33011.00 General selling and  administrative expenses 17352.00 20010.00 19000.00 18754.00 19899.00 8000.00  Research and development  expenses 0.00 0.00 0.00 0.00 0.00 6000.00  other operating  income/(Expenses) (4513.00) (4774.00) (2495.00) (2864.00) (3107.00) 4000.00  Operating profit 10276.00 7765.00 5978.00 9128.00 10005.00 2000.00  Other non‐operating  income/(expenses) 0.00 0.00 0.00 0.00 0.00 0.00  2007 2008 2009 2010 2011 EBITDA 10276.00 7765.00 5978.00 9128.00 10005.00 Depreciation 601.00 629.00 930.00 741.00 729.00 EBIT 9675.00 7136.00 5048.00 8387.00 9276.00 Operating profit EBITDA Sales Interest expenses 3981.00 3555.00 2207.00 2423.00 2320.00 EBT 5694.00 3581.00 2841.00 5964.00 6956.00 Tax 1568.00 710.00 704.00 1907.00 2057.00 Financial Data Mining EAT 4126.00 2871.00 2137.00 4057.00 4899.00 Non recurring income  (114.00) (172.00) (7.00) 0.00 36.00 Get a Free Quote Reported profit 4012.00 2699.00 2130.00 4057.00 4935.00 Minority Interest 0 0 0 0 0 Profit Levels 2007 2008 2009 2010 2011 Gross profit Operating profit EBITDA EBIT EBT EAT Reported profit Profit Margins 2011 102.26  30.99  30.99  28.73  21.55  15.18  2010 102.47  30.42  30.42  27.95  19.88  13.52  2009 103.50  22.52  22.52  19.02  10.70  8.05  2008 101.97  24.33  24.33  22.36  11.22  8.99  2007 101.91  32.58  32.58  30.68  18.05  13.08  Gross profit Operating profit EBITDA EBIT EBT EAT © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 4
  5. 5. Balance Sheet Particulars (in Millions) 2007 2008 2009 2010 2011 Sources of Fund Owners Fund Sources of Fund Redeemable Preferred Stock 0.00 0.00 0.00 0.00 0.00 Preferred Stock ‐ Non  Redeemable, Net 0.00 0.00 0.00 0.00 0.00 Common Stock 232.00 232.00 237.00 238.00 232.00 Additional Paid‐In Capital 10164.00 10496.00 11144.00 11937.00 12217.00 Retained Earnings  (Accumulated Deficit) 1075.00 2719.00 3737.00 4972.00 7221.00 Treasury Stock ‐ Common 0.00 0.00 0.00 0.00 0.00 ESOP Debt Guarantee 0.00 0.00 0.00 0.00 0.00 Unrealized Gain (Loss) (59.00) (779.00) 479.00 50.00 287.00 Other Equity, Total (383.00) (827.00) (1191.00) (967.00) (1163.00) Total Equity 11029.00 11841.00 14406.00 16230.00 18794.00 Loan Fund Long Term Debt 55285.00 60041.00 52338.00 66416.00 59570.00 Capital Lease Obligations 0.00 0.00 0.00 0.00 0.00 2007 2008 2009 2010 2011 Deferred Income Tax 0.00 0.00 0.00 0.00 0.00 Total Equity Total Loan Fund Minority Interest 0.00 0.00 0.00 0.00 0.00 Other Liabilities, Total 57928.00 36771.00 46994.00 50938.00 61091.00 Total Loan Fund 113213.00 96812.00 99332.00 117354.00 120661.00 Total Fund 124242.00 108653.00 113738.00 133584.00 139455.00 Application of Funds Uses of funds Fixed Assets Property/Plant/Equipment,  Total ‐ Net 2692.00 2948.00 2782.00 2905.00 3367.00 Goodwill, Net 1508.00 2301.00 2328.00 2639.00 3172.00 Intangibles, Net 204.00 717.00 717.00 972.00 1149.00 Long Term Investments 20392.00 31499.00 39411.00 28221.00 28526.00 Note Receivable ‐ Long Term 0.00 0.00 0.00 0.00 0.00Other Long Term Assets, Total 24965.00 3924.00 5171.00 7569.00 3459.00 Other Assets, Total 55670.00 44021.00 32174.00 60002.00 63663.00 2007 2008 2009 2010 2011 Total Fixed Assets 105431.00 85410.00 82583.00 102308.00 103336.00 Net Current Assets Total Fixed Assets Total Current Assets 44312.00 40664.00 42562.00 44381.00 50001.00 Total Net Current Assets Total Current Liabilities 25501.00 17421.00 11407.00 13105.00 13882.00 Total Net Current Assets 18811.00 23243.00 31155.00 31276.00 36119.00 Total Assets 124242.00 108653.00 113738.00 133584.00 139455.00 % of Total Fund 91.12  89.10  87.33  87.85  86.52  Financial Data Mining 8.88  10.90  12.67  12.15  13.48  Get a Free Quote 2007 2008 2009 2010 2011 Total Loan Fund Total Equity © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 5
  6. 6. Cash flow Statement Particulars (in Millions) 2007 2008 2009 2010 2011 Cash FlowCash from Operating Activities 8011.00 7773.00 6337.00 8935.00 10475.00Cash from Investing Activities (16621.00) 7561.00 (6752.00) (1229.00) (491.00)Cash from Financing Activities 15466.00 (10440.00) (4647.00) (8084.00) (1384.00) Foreign Exchange Effects 166.00 20.00 7.00 135.00 (63.00) Net Change in Cash 7022.00 4914.00 (5055.00) (243.00) 8537.00 2007 2008 2009 2010 2011Net Cash ‐ Beginning Balance 8246 16740 21654 16599 16356 Net Cash ‐ Ending Balance 15268 21654 16599 16356 24893 Cash from Operating Activities Cash from Investing Activities Quarterly Income Statement Cash from Financing Activities Particulars (in Millions) 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 Sales 7624.00 8195.00 8146.00 8317.00 8188.00 cost of goods sold (227.00) (278.00) (228.00) (185.00) (254.00) Gross profit 7851.00 8473.00 8374.00 8502.00 8442.00 General selling and  administrative expenses 4628.00 5184.00 4999.00 5177.00 5017.00 Research and development  expenses other operating  0.00 0.00 0.00 0.00 0.00 Financial Data Mining income/(Expenses) (671.00) (669.00) (861.00) (817.00) (824.00) Operating profit 2552.00 2620.00 2514.00 2508.00 2601.00 Other non‐operating  Get a Free Quote income/(expenses) 0.00 0.00 0.00 0.00 0.00 EBITDA 2552.00 2620.00 2514.00 2508.00 2601.00 Depreciation 227.00 278.00 228.00 185.00 254.00 EBIT 2325.00 2342.00 2286.00 2323.00 2347.00 Interest expenses 593.00 577.00 575.00 575.00 574.00 EBT 1732.00 1765.00 1711.00 1748.00 1773.00 Tax 555.00 470.00 476.00 556.00 517.00 EAT 1177.00 1295.00 1235.00 1192.00 1256.00 Non recurring income  0.00 36.00 0.00 0.00 0.00 Reported profit 1177.00 1331.00 1235.00 1192.00 1256.00 Minority Interest 0 0 0 0 0 Sales and Profit Margin 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 Sales Operating Profit Margin PAT Margin © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 6
  7. 7. Growth Analysis Average  Median  Particulars (%) 2008 2009 2010 2011 5 Year CAGR Growth Growth Sales 1.20 (16.85) 13.04 7.59 1.25 4.40 1.00 cost of goods sold 4.66 47.85 (20.32) (1.62) 7.64 1.52 1.04 Gross profit 1.27 (15.59) 11.91 7.37 1.24 4.32 1.01 General selling and  administrative expenses 15.32 (5.05) (1.29) 6.11 3.77 2.41 1.03 Research and development  expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 other operating  income/(Expenses) 5.78 (47.74) 14.79 8.48 (4.67) 7.13 0.93 Operating profit (24.44) (23.01) 52.69 9.61 3.71 (6.70) 0.99 Other non‐operating  income/(expenses) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 EBITDA (24.44) (23.01) 52.69 9.61 3.71 (6.70) 0.99 Depreciation 4.66 47.85 (20.32) (1.62) 7.64 1.52 1.04 EBIT (26.24) (29.26) 66.15 10.60 5.31 (7.82) 0.99 Interest expenses (10.70) (37.92) 9.79 (4.25) (10.77) (7.48) 0.90 EBT (37.11) (20.66) 109.93 16.63 17.20 (2.02) 1.04 Tax (54.72) (0.85) 170.88 7.87 30.80 3.51 1.06 EAT (30.42) (25.57) 89.85 20.75 13.65 (2.41) 1.03 Non recurring income  50.88 (95.93) (100.00) 0.00 (36.26) (47.97) (0.79) Reported profit (32.73) (21.08) 90.47 21.64 14.58 0.28 1.04 Minority Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Growth Rates (Year on Year) 2008 2009 2010 2011 Sales Gross profit Operating profit EBITDA EBIT EBT EAT Reported profit Profit Index (Year on Year) 2007 2008 2009 2010 2011 Sales Gross profit Operating profit EBITDA EBIT EAT Reported profit © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 7
  8. 8. Comparative Analysis Income Statement Particulars (%) 2007 2008 2009 2010 2011 Sales 100.00 100.00 100.00 100.00 100.00 cost of goods sold (1.91) (1.97) (3.50) (2.47) (2.26) Gross profit 101.91 101.97 103.50 102.47 102.26 General selling and  administrative expenses 55.02 62.69 71.58 62.50 61.64 Research and development  expenses 0.00 0.00 0.00 0.00 0.00 other operating  income/(Expenses) (14.31) (14.96) (9.40) (9.55) (9.62) Source of Fund (%) 2011 Operating profit 32.58 24.33 22.52 30.42 30.99 Other non‐operating  income/(expenses) 0.00 0.00 0.00 0.00 0.00 13% EBITDA 32.58 24.33 22.52 30.42 30.99 Depreciation 1.91 1.97 3.50 2.47 2.26 EBIT 30.68 22.36 19.02 27.95 28.73 Interest expenses 12.62 11.14 8.31 8.08 7.19 EBT 18.05 11.22 10.70 19.88 21.55 Tax 4.97 2.22 2.65 6.36 6.37 EAT 13.08 8.99 8.05 13.52 15.18 87% Non recurring income  (0.36) (0.54) (0.03) 0.00 0.11 Reported profit 12.72 8.46 8.02 13.52 15.29 Minority Interest 0.00 0.00 0.00 0.00 0.00 Total Equity Total Loan Fund Balance Sheet Particulars 2007 2008 2009 2010 2011 Sources of Fund Owners Fund Redeemable Preferred Stock 0.00 0.00 0.00 0.00 0.00 Preferred Stock ‐ Non  Redeemable, Net 0.00 0.00 0.00 0.00 0.00 Common Stock 0.19 0.21 0.21 0.18 0.17 Additional Paid‐In Capital 8.18 9.66 9.80 8.94 8.76 Retained Earnings  0.87 2.50 3.29 3.72 5.18 Application of Fund (%)  Treasury Stock ‐ Common 0.00 0.00 0.00 0.00 0.00 2011 ESOP Debt Guarantee 0.00 0.00 0.00 0.00 0.00 Unrealized Gain (Loss) (0.05) (0.72) 0.42 0.04 0.21 Other Equity, Total (0.31) (0.76) (1.05) (0.72) (0.83) 26% Total Equity 0 8.88 10.90 12.67 12.15 13.48 Loan Fund Long Term Debt 44.50 55.26 46.02 49.72 42.72 Capital Lease Obligations 0.00 0.00 0.00 0.00 0.00 Deferred Income Tax 0.00 0.00 0.00 0.00 0.00 74% Minority Interest 0.00 0.00 0.00 0.00 0.00 Other Liabilities, Total 46.63 33.84 41.32 38.13 43.81 Total Loan Fund 91.12 89.10 87.33 87.85 86.52 Total Fund 100.00 100.00 100.00 100.00 100.00 Total Fixed Assets Uses of funds Fixed Assets Total Net Current Assets Property/Plant/Equipment,  Total ‐ Net 2.17 2.71 2.45 2.17 2.41 Goodwill, Net 1.21 2.12 2.05 1.98 2.27 Intangibles, Net 0.16 0.66 0.63 0.73 0.82 Long Term Investments 16.41 28.99 34.65 21.13 20.46 Note Receivable ‐ Long Term 0.00 0.00 0.00 0.00 0.00 Equity Research ReportOther Long Term Assets, Total 20.09 3.61 4.55 5.67 2.48 Other Assets, Total 44.81 40.52 28.29 44.92 45.65 Total Fixed Assets 84.86 78.61 72.61 76.59 74.10 Get a Free Quote Net Current Assets Total Current Assets 35.67 37.43 37.42 33.22 35.85 Total Current Liabilities 20.53 16.03 10.03 9.81 9.95 Total Net Current Assets 15.14 21.39 27.39 23.41 25.90 Total Assets 100.00 100.00 100.00 100.00 100.00 © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 8
  9. 9. Index Analysis Income Statement Particulars 2007 2008 2009 2010 2011 (Base Year) Sales 100.00 101.20 84.16 95.13 102.35 cost of goods sold 100.00 104.66 154.74 123.29 121.30 Gross profit 100.00 101.27 85.48 95.66 102.71 Credit/Bond Analysis General selling and  100.00 115.32 109.50 108.08 114.68 Research and development  0.00 0.00 0.00 0.00 0.00 other operating  Operating profit 100.00 100.00 105.78 75.56 55.28 58.17 63.46 88.83 68.85 97.36 Get a Free Quote Other non‐operating  0.00 0.00 0.00 0.00 0.00 EBITDA 100.00 75.56 58.17 88.83 97.36 Depreciation 100.00 104.66 154.74 123.29 121.30 EBIT 100.00 73.76 52.18 86.69 95.88 Interest expenses 100.00 89.30 55.44 60.86 58.28 EBT 100.00 62.89 49.89 104.74 122.16 Tax 100.00 45.28 44.90 121.62 131.19 EAT 100.00 69.58 51.79 98.33 118.73 Non recurring income  100.00 150.88 6.14 0.00 (31.58) Reported profit 100.00 67.27 53.09 101.12 123.01 Minority Interest 0.00 0.00 0.00 0.00 0.00 Balance Sheet Particulars 2007 2008 2009 2010 2011 Sources of Fund Owners Fund Index of Loan Fund and Fixed  Redeemable Preferred Stock 0.00 0.00 0.00 0.00 0.00 Assets Preferred Stock ‐ Non  0.00 0.00 0.00 0.00 0.00 Common Stock 100.00 100.00 102.16 102.59 100.00 Additional Paid‐In Capital 100.00 103.27 109.64 117.44 120.20 Retained Earnings  100.00 252.93 347.63 462.51 671.72 Treasury Stock ‐ Common 0.00 0.00 0.00 0.00 0.00 ESOP Debt Guarantee 0.00 0.00 0.00 0.00 0.00 Unrealized Gain (Loss) 100.00 1320.34 (811.86) (84.75) (486.44) Other Equity, Total 100.00 215.93 310.97 252.48 303.66 Total Equity 100.00 107.36 130.62 147.16 170.41 Loan Fund Long Term Debt 100.00 108.60 94.67 120.13 107.75 2007 2008 2009 2010 2011 Capital Lease Obligations 0.00 0.00 0.00 0.00 0.00 Deferred Income Tax 0.00 0.00 0.00 0.00 0.00 Minority Interest 0.00 0.00 0.00 0.00 0.00 Total Loan Fund Total Fixed Assets Other Liabilities, Total 100.00 63.48 81.12 87.93 105.46 Total Loan Fund 100.00 85.51 87.74 103.66 106.58 Total Fund 100.00 87.45 91.55 107.52 112.24 Uses of funds Fixed Assets Property/Plant/Equipment,  Total ‐ Net 100.00 109.51 103.34 107.91 125.07 Goodwill, Net 100.00 152.59 154.38 175.00 210.34 Intangibles, Net 100.00 351.47 351.47 476.47 563.24 Long Term Investments 100.00 154.47 193.27 138.39 139.89 Note Receivable ‐ Long Term 0.00 0.00 0.00 0.00 0.00Other Long Term Assets, Total 100.00 15.72 20.71 30.32 13.86 Other Assets, Total 100.00 79.07 57.79 107.78 114.36 Total Fixed Assets 100.00 81.01 78.33 97.04 98.01 Net Current Assets Total Current Assets 100.00 91.77 96.05 100.16 112.84 Total Current Liabilities 100.00 68.31 44.73 51.39 54.44 Total Net Current Assets 100.00 123.56 165.62 166.26 192.01 Total Assets 100.00 87.45 91.55 107.52 112.24 © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 9
  10. 10. Ratio Analysis‐Annual Particulars 2007 2008 2009 2010 2011 Per Share Ratio Normalized EPS 2.84 2.08 1.00 2.88 3.77 Basic EPS 3.40 2.33 1.54 3.37 4.14 Diluted EPS 3.34 2.32 1.54 3.35 4.12 Adjusted Cash EPS 4.03 3.03 2.63 4.04 4.78 EPS Trend Dividend Per Share 0.63 0.72 0.72 0.72 0.72 Operating Profit per Share 8.76 6.73 5.12 7.68 8.49 Book Value Per Share  (Excluding Treasury Stocks) 9.40 10.26 12.33 13.66 15.95 Book Value Per Share  (Including Treasury Stocks) 9.40 10.26 12.33 13.66 15.95 Net Operating Income Per  Share 26.89 27.66 22.73 25.26 27.40 Free Reserve Per Share 0.92 2.36 3.20 4.19 6.13 Profitability Ratio (%) 2007 2008 2009 2010 2011 Operating Margin 32.58 24.33 22.52 30.42 30.99 Gross Profit margin 101.91 101.97 103.50 102.47 102.26 Normalized EPS Basic EPS Net profit Margin 12.72 8.46 8.02 13.52 15.29Normalized Net Profit Margin 10.66 7.56 5.64 11.59 13.95 Diluted EPS Adjusted Cash Margin 14.99 10.96 11.55 15.99 17.43 Effective Tax Rate 27.54 19.83 24.78 31.98 29.57 Normalized Return on Net  Worth (Excluding Treasury  Stock) 30.47 20.38 10.39 21.43 23.96Reported Return on Net Worth  (Excluding Treasury Stock)  36.38 22.79 14.79 25.00 26.26 Debt‐Equity Ratio Return on Long Term Fund 3.23 2.48 1.87 3.04 3.54 Leverage Ratio Long term Debt/Equity 5.01 5.07 3.63 4.09 3.17 Total Debt/Equity 10.27 8.18 6.90 7.23 6.42 Owned Fund as % of Total  Fund 8.88 10.90 12.67 12.15 13.48 Fixed Assets Turnover Ratio 0.30 0.37 0.32 0.29 0.31 Liquidity Ratio 2007 2008 2009 2010 2011 Current Ratio 1.74 2.33 3.73 3.39 3.60 Current Ratio (Including St.  Loans) 1.74 2.33 3.73 3.39 3.60 Long term Debt/Equity Quick Ratio 1.74 2.33 3.73 3.39 3.60 Total Debt/Equity Inventory Turnover Ratio NA NA NA NA NA Payout Ratio(%) Dividend Payout Ratio 17.94 29.12 40.01 21.37 17.47 Dividend Pay out Ratio (Cash  Liquidity Ratio Profit) 15.65 23.89 27.88 18.07 15.21 Earning Retention Ratio 82.06 70.88 59.99 78.63 82.53 Cash Earning Retention Ratio 84.35 76.11 72.12 81.93 84.79 Coverage RatioAdjusted Cash flow Time Total  Debt 0.07 0.08 0.06 0.08 0.09 Financial Charges Coverage  2007 2008 2009 2010 2011 Ratio (Pre Tax) 2.43 2.01 2.29 3.46 4.00 Financial Charges Coverage  Current Ratio Ratio (Post Tax) 2.04 1.81 1.97 2.67 3.11 Current Ratio (Including St. Loans) Quick Ratio © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 10
  11. 11. Ratio Analysis‐Quarter Per Share Ratio Per Share Ratio (QoQ) Particulars 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 Operating Income Per  Share(Rs.) 6.36 6.85 6.90 7.15 7.02Operating Profit Per Share(Rs.) 2.13 2.19 2.13 2.16 2.23 Adjusted EPS(Rs.) 0.97 1.07 1.03 1.01 1.07 Profitability Ratio Operating Profit Margin 33.47 31.97 30.86 30.16 31.77 EBITDA Margin 33.47 31.97 30.86 30.16 31.77 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 EBIT Margin 30.50 28.58 28.06 27.93 28.66 PAT Margin 15.44 15.80 15.16 14.33 15.34 Operating Income Per Share(Rs.) Operating Profit Per Share(Rs.) Adjusted EPS(Rs.) TTM Analysis Particulars (in Millions) 2011 Q4 % of Sales 2012 Q1 % of Sales Changes Sales 32282.00 100.00 32846.00 100.00 1.75 cost of goods sold (918.00) (2.84) (945.00) (2.88) 2.94 Gross profit 33200.00 102.84 33791.00 102.88 1.78 General selling and  19988.00 61.92 20377.00 62.04 1.95 Research and development  other operating  0.00 (3018.00) 0.00 (9.35) 0.00 (3171.00) 0.00 (9.65) NA 5.07 Fundamental Analysis and  Operating profit Other non‐operating  10194.00 0.00 31.58 0.00 10243.00 0.00 31.18 0.00 0.48 NA Modeling EBITDA 10194.00 31.58 10243.00 31.18 0.48 Depreciation 918.00 2.84 945.00 2.88 2.94 EBIT 9276.00 28.73 9298.00 28.31 0.24 Get a Free Quote Interest expenses 2320.00 7.19 2301.00 7.01 (0.82) EBT 6956.00 21.55 6997.00 21.30 0.59 Tax 2057.00 6.37 2019.00 6.15 (1.85) EAT 4899.00 15.18 4978.00 15.16 1.61 Non recurring income  36.00 0.11 36.00 0.11 0.00 Reported profit 4935.00 15.29 5014.00 15.27 1.60 Minority Interest 0.00 0.00 0.00 0.00 NA EPS 4.21 4.27 1.35 SPS 27.76 28.17 1.49 Profit Margins (TTM) 2012 Q1 102.88  31.18  31.18  28.31  21.30  15.16  15.27  2011 Q4 102.84  31.58  31.58  28.73  21.55  15.18  15.29  Gross profit Operating profit EBITDA EBIT EBT EAT Reported profit © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 11
  12. 12. Valuation and Projection Price Estimates Analyst Recommendation Average Target 63.33 Median Target 65.00 Strong Buy Buy Hold Underperform Sell High Target 72.00 Low Target 50.00 7% 0% No. of Analyst 21.00 Projection 26% Quarter  Quarter  Year Ending  Year Ending  41% Ending Jun‐12 Ending Sep‐12 Dec‐12 Dec‐13 26% Sales 8108.39 8096.58 32150.00 34429.00 EPS 1.09 1.07 4.33 4.79 Growth (1.06) (0.61) (0.41) 7.09 Performance Over Industry Particulars Company Industry Earning Surprise Dividend Yield 1.5 1.85 Dividend Yield ‐ 5 Year Avg. 1.74 1.61 8%Dividend 5 Year Growth Rate 4.78 17.33 7% 7% Payout Ratio(TTM) 17.64 18.77 Quick Ratio (MRQ) ‐‐ 0.17 Current Ratio (MRQ) ‐‐ 1.13 LT Debt to Equity (MRQ) 285.55 359.67 Total Debt to Equity (MRQ) 304.43 394.64 Interest Coverage (TTM) 3.67 0.14 2% Gross Margin (TTM) ‐‐ 41.42 Gross Margin ‐ 5 Yr. Avg. 100 60.63 EBITD Margin (TTM) 33.07 ‐‐ EBITD ‐ 5 Yr. Avg 28.75 29.27 Q1 Q2 Q3 Q4 Operating Margin (TTM) 21.3 30.37Operating Margin ‐ 5 Yr. Avg. 16.44 21.77 Pre‐Tax Margin (TTM) 21.3 30.54 Pre‐Tax Margin ‐ 5 Yr. Avg. 16.44 21.72 Net Profit Margin (TTM) 15.16 21.44Net Profit Margin ‐ 5 Yr. Avg. 11.88 14.84 Effective Tax Rate (TTM) 28.86 27.98Effective Tax Rate ‐ 5 Yr. Avg. 27.74 32.02 Excel‐VBA Based Model Revenue/Employee (TTM) 525536 1081578 Get a Free QuoteNet Income/Employee (TTM) 79648 94373 Receivable Turnover (TTM) 0.61 23.31 Inventory Turnover (TTM) ‐‐ 11.6 Asset Turnover (TTM) 0.22 0.1 Return on Assets (TTM) 3.37 2.36 Return on Assets ‐ 5 Yr. Avg. 2.63 2.41Return on Investment (TTM) 3.73 3.09Return on Investment ‐ 5 Yr.  Avg. 3 3.1 Return on Equity (TTM) 26.32 19.44 Return on Equity ‐ 5 Yr. Avg. 25.84 19.79 © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 12
  13. 13. Technical Analysis Price Chart 70 16000000 60 14000000 12000000 50 10000000 40 8000000 30 6000000 20 4000000 10 2000000 0 0 22‐Nov 1‐Feb 16‐Apr Volume Adj Close EMA(200) EMA(50) 3.00 2.00 1.00 0.00 ‐1.00 MACD Signal line 100 80 60 40 20 0 RSI(14) Technical Indicators Price 53.43 AS On: 6/1/2012 EMA(13) 56.85 ADX 18 EMA(26) 56.78 DX 45 Technical Analysis Get a Free Quote EMA(50) 55.18 +DI 14 EMA(200) 49.39 ‐DI 37 RSI(14) 28.08 %K(Fast) 0 MACD 0.06 %K(Slow) 3.85 William(%R) ‐100.00 %d(Slow) 9.82 © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 13
  14. 14. Service Description We provide financial research and analytics services to our worldwide client. Our research is  customized and proprietary to our clients and often provided in client formats and templates. Our  expert team of analyst add crucial values to client proprietary methodology and add efficiencies. Equity Research SKC Provides a broad range of services in this segment. We serve both buy side and sell side clients  like, bulge bracket equity research departments, hedge funds, investment advisers and independent  research houses. Our analytical capabilities includes: bottom‐up earnings forecasts, discounted cash  flow valuation models, thematic sector research, and research summaries etc. Financial Modeling & Analytics SKC provides all investment research and Financial Modeling solution to the clients. Our Quantitative  team comprises of highly qualified professionals with vast experience in Financial Modeling. Our  Expert team of statisticians provides financial modeling design suggestion to clients. Fixed Income & Credit Research We serve bulge bracket banks as well as credit hedge funds in Fixed Income and Credit research  segments. Our investment analysis involves forecasting  of interest rate structure, Risk analysis and E‐I‐ C research. Technical Analysis We are leading provider of technical analysis strategies and methodology. Our technical strategies  cover equity, index, Forex, commodities and fixed‐income markets. Our chartists and mathematical  approaches match requirements of various investment styles, from intraday trading to swing trading  and long term investments. Commodity Research and Analysis We are focused on fundamental and technical analysis of global commodities market. Our unique  commodity research and market insights will enable our customers to grasp the present scenario of the  market and what will it be in the future. Our commodity research team provides a complete solution  from price discovery to analysis. Forex Research and Analysis Our Forex Research expert team can delivers Forex‐related insight, tools, and information that you  need to make great decisions about your Forex trading. We are at industry forefront in terms of Forex  research service quality with extensive market experience and effective qualified specialist expertise. Our goal and focus is to provide the intelligence, opinion, and analysis of the currency  that will meet  your needs and foster your trading success. We Are Always Open For A Free Trial © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 14

×