Finning International Inc. is a dealer of Caterpillar heavy equipment and diesel engines. It operates in Canada, the UK/Ireland, and South America. The document recommends buying Finning stock with a target price of $37.79, representing a 13% upside. Key reasons include an expected recovery in oil and copper prices, Finning's competitive advantages through its exclusive CAT dealership, and improving returns on invested capital.
- Big-box demand continued in Houston with population-driven users like Costco and Ikea making long-term commitments through major land purchases and planned developments.
- While northern submarkets led leasing activity earlier in the year, the southeast submarket captured over 50% of deals in Q4 2018, including several large expansions by distribution companies.
- New industrial supply slightly outpaced demand in 2018, causing vacancy to rise slightly from 4.9% to 5.1%, but this small increase does not threaten Houston's landlord-favorable market conditions.
- Big-box demand continued in Houston in Q4 2018, with Costco purchasing 150 acres and Ikea acquiring 164 acres for large projects.
- The Southeast submarket captured over 50% of leasing activity in Q4, with several large expansions by distribution companies.
- While demand outpaced supply, new deliveries in 2018 finished ahead of net absorption, causing vacancy to rise slightly from 4.9% to 5.1%.
JLL Detroit Industrial Insight & Statistics - Q4 2019Harrison West
Detroit’s industrial market ended 2019 on a strong note, as nearly 1.5 million square feet was absorbed in the fourth quarter. Average asking rents have grown by 4.4 percent year-over-year, while vacancies have leveled off over the same period. Leasing activity was healthy in the fourth quarter with some of the more significant deals being Piston Automotive renewing their lease for 256,100 square feet in Redford and Ternes Packaging taking 303,000 square feet in Pontiac.
Heidelberg Cement reports superlative set of numbers for Q1FY15; HoldIndiaNotes.com
HCIL reported superlative set of numbers, which were higher than estimates owing to sale of 0.6 mt inefficient Raigad unit and improving operating parameters. While topline grew by 13.6%. Post the sharp appreciation in stock price, rating is changed form buy to hold.
- Intellect Design Arena reported steady Q1 results with revenues of $37.4 million, flat quarter-over-quarter but up 22% year-over-year, in line with estimates. Higher operating leverage led to a significant improvement in EBITDA margins to 5.6% compared to -6.5% a year ago.
- While maintaining a Buy rating, the analyst lowered the target price to Rs 150 from Rs 175 previously to account for a 23% dilution from a rights issue and currency movements.
- Revenue growth is expected to continue but estimates were lowered slightly to reflect currency impacts. Positive free cash flow and a stronger balance sheet are anticipated in FY19.
HeidelbergCement reports results for the third quarter of 2017 HeidelbergCement
This document provides an overview and key figures from HeidelbergCement's 2017 third quarter results presentation. Some key points:
- Organic growth turned positive in Q3 2017, with like-for-like EBITDA increasing 7% and the Group margin reaching 23%.
- Synergy targets from the Italcementi acquisition were significantly over-achieved.
- EPS increased 38% to €2.42, driven by improved net financial results and stable costs.
- Group share of profit increased 42% to €481 million in Q3 2017.
- Free cash flow generation of €1.2 billion over the last 12 months brought net debt down to €9.6
- Newmont Mining Corporation reported its Q1 2018 earnings on April 26, 2018.
- The company reported adjusted EBITDA of $644 million, up 12% from the prior year quarter, and adjusted net income of $0.35 per diluted share.
- Production was in line with guidance at 1.2 million ounces of gold, and AISC was $973 per ounce, also in line with guidance.
- Big-box demand continued in Houston with population-driven users like Costco and Ikea making long-term commitments through major land purchases and planned developments.
- While northern submarkets led leasing activity earlier in the year, the southeast submarket captured over 50% of deals in Q4 2018, including several large expansions by distribution companies.
- New industrial supply slightly outpaced demand in 2018, causing vacancy to rise slightly from 4.9% to 5.1%, but this small increase does not threaten Houston's landlord-favorable market conditions.
- Big-box demand continued in Houston in Q4 2018, with Costco purchasing 150 acres and Ikea acquiring 164 acres for large projects.
- The Southeast submarket captured over 50% of leasing activity in Q4, with several large expansions by distribution companies.
- While demand outpaced supply, new deliveries in 2018 finished ahead of net absorption, causing vacancy to rise slightly from 4.9% to 5.1%.
JLL Detroit Industrial Insight & Statistics - Q4 2019Harrison West
Detroit’s industrial market ended 2019 on a strong note, as nearly 1.5 million square feet was absorbed in the fourth quarter. Average asking rents have grown by 4.4 percent year-over-year, while vacancies have leveled off over the same period. Leasing activity was healthy in the fourth quarter with some of the more significant deals being Piston Automotive renewing their lease for 256,100 square feet in Redford and Ternes Packaging taking 303,000 square feet in Pontiac.
Heidelberg Cement reports superlative set of numbers for Q1FY15; HoldIndiaNotes.com
HCIL reported superlative set of numbers, which were higher than estimates owing to sale of 0.6 mt inefficient Raigad unit and improving operating parameters. While topline grew by 13.6%. Post the sharp appreciation in stock price, rating is changed form buy to hold.
- Intellect Design Arena reported steady Q1 results with revenues of $37.4 million, flat quarter-over-quarter but up 22% year-over-year, in line with estimates. Higher operating leverage led to a significant improvement in EBITDA margins to 5.6% compared to -6.5% a year ago.
- While maintaining a Buy rating, the analyst lowered the target price to Rs 150 from Rs 175 previously to account for a 23% dilution from a rights issue and currency movements.
- Revenue growth is expected to continue but estimates were lowered slightly to reflect currency impacts. Positive free cash flow and a stronger balance sheet are anticipated in FY19.
HeidelbergCement reports results for the third quarter of 2017 HeidelbergCement
This document provides an overview and key figures from HeidelbergCement's 2017 third quarter results presentation. Some key points:
- Organic growth turned positive in Q3 2017, with like-for-like EBITDA increasing 7% and the Group margin reaching 23%.
- Synergy targets from the Italcementi acquisition were significantly over-achieved.
- EPS increased 38% to €2.42, driven by improved net financial results and stable costs.
- Group share of profit increased 42% to €481 million in Q3 2017.
- Free cash flow generation of €1.2 billion over the last 12 months brought net debt down to €9.6
- Newmont Mining Corporation reported its Q1 2018 earnings on April 26, 2018.
- The company reported adjusted EBITDA of $644 million, up 12% from the prior year quarter, and adjusted net income of $0.35 per diluted share.
- Production was in line with guidance at 1.2 million ounces of gold, and AISC was $973 per ounce, also in line with guidance.
JLL Detroit Industrial Insight & Statistics - Q4 2018Harrison West
The fourth quarter of 2018 marked another period of growth for Detroit’s industrial sector. Total vacancy fell ten basis points to 5.3 percent, while average asking rents held steady, currently coming in at $5.49 per square foot. Over 4.2 million square feet of industrial space was delivered in the fourth quarter...
Entertainment Network Ltd: Stock Price & Q4 Results Of Entertainment Network ...hdfcsecurities1
Entertainment Network Limited: Check out the institutional research report of Q4 result of Entertainment Network Ltd. ENIL’s 4QFY18 was in-line but muted. Revenue declined 3.7% YoY owing to high base and cut in ad volumes.
- Entertainment Network's (ENIL) Q1 FY18 results showed a decline, with sales down 9.6% year-over-year to Rs. 987 million and EBITDA margins falling to 11% from 21.6% in FY17 due to price hikes not being absorbed and increased employee costs.
- The analyst cuts FY18 and FY19 EPS estimates by 13-19% and lowers the target price to Rs. 780, citing weak H1 results and rich valuations. Recovery is hoped for in festival season sales in H2 but remains uncertain.
- The report maintains a "Sell" rating given expectations of a slow recovery in ENIL's core advertising
Goodrich Corporation announced financial results for the third quarter of 2007, with income per share up 39% year-over-year. The company increased its full-year 2007 earnings outlook and provided an outlook for 2008 with sales expected between $7.1-7.2 billion and earnings per share of $4.15-$4.30. Key drivers for growth include increasing production rates for commercial aircraft and above market growth for defense programs. The company also announced the pending sale of its aviation maintenance business.
Marico 1QFY15 results ahead of expectations; buy - Motilal OswalIndiaNotes.com
Marico reported first quarter results for fiscal year 2015 that were ahead of expectations. Net sales grew 17.4% driven by strong growth in Parachute coconut oil due to price hikes to offset higher input costs. While gross margins contracted due to rising copra prices, savings in other expenses helped limit the decline in operating margins. The company maintained its medium term strategy of doubling revenues in four years.
Coal India reported mixed Q2 FY16 results with revenue in line with expectations but profit below estimates. Revenue grew 8.2% YoY to Rs. 169,575.9 million due to a 2.7% rise in FSA sales realization, but e-auction realization crashed 28.4% YoY. Lower overburden removal expenses led to a 140 bps rise in EBITDA margins but margins fell sequentially. Profit was impacted by lower other income and higher tax rate though still up 15.2% YoY. Subdued e-auction prices and potential stake sale remain concerns. The analyst maintains a 'Buy' rating with a target price of Rs. 388 per share based on 17.
The document provides an earnings summary and financial review for Trinseo for Q4 and full year 2014. It discusses several key points:
- Trinseo achieved $5.1 billion in revenue and $262 million in adjusted EBITDA for 2014. Adjusted EBITDA excluding inventory revaluation was $326 million.
- Synthetic rubber achieved 28% volume growth for full year 2014, driven by growth in high-performance tires. Styrene margins increased in Q4 due to outages.
- Inventory revaluation was $41 million negative for Q4 due to declining raw material costs. Excluding this impact, adjusted EBITDA was $104 million for Q4.
JLL Detroit Industrial Insight & Statistics - Q2 2017Harrison West
Market sentiment remains positive, yet leasing activity was somewhat muted in the second quarter. Low market availability for quality space has encouraged build-to-suit projects as well as speculative construction.
Marico reported mixed financial results for the second quarter of fiscal year 2011. While overall volume growth was strong at 15%, price cuts taken in core brands constrained top-line growth to 12.5% year-over-year. Earnings grew 14.8% driven by lower taxes and other income, but operating profit rose only 4.5% as gross margins contracted sharply due to rising input costs. The company's international business and hair oils portfolio posted robust growth, but margins are expected to recover only gradually as further price hikes are implemented.
JLL Detroit Industrial Insight & Statistics - Q4 2018Harrison West
The fourth quarter of 2018 marked another period of growth for Detroit’s industrial sector. Total vacancy fell ten basis points to 5.3 percent, while average asking rents held steady, currently coming in at $5.49 per square foot. Over 4.2 million square feet of industrial space was delivered in the fourth quarter, highlighted by new facilities for Amazon, Flex-N-Gate and Penske Logistics.
HeidelbergCement Half-Year Financial Report January to June 2017HeidelbergCement
The document provides an overview of HeidelbergCement's 2017 half year results. Some key points:
- Group profit increased 17% year-over-year to 288 million euros due to successful integration of the Italcementi acquisition.
- Revenue increased 29% and operating EBITDA increased 22% compared to the prior year period. Synergy targets from the Italcementi acquisition were already achieved in June, exceeding expectations.
- Results were solid despite headwinds from weather, Easter timing, and Ramadan. An upward trend was seen starting in May. Cash flow was impacted by increased working capital and an acquisition in the Pacific Northwest. Full year outlook is confirmed.
This presentation by Pirelli & C SpA contains forward-looking statements about future performance that may differ from actual results due to various risks and uncertainties. It provides preliminary financial results for the first quarter of 2011, showing increases in revenues, EBITDA, EBIT, and net income compared to the same period last year, driven by strong pricing actions and efficiencies offsetting higher raw material costs. The presentation also updates Pirelli's full-year 2011 targets and provides additional details on financial and operating performance by business segment.
JK Cement Q1FY15: Buy for a target of Rs520IndiaNotes.com
Net sales grew by 22% YoY (-3% QoQ) to INR8b (v/s est. of INR7.4b). Cement volumes grew by 21% to 1.74mt (v/s est. 1.53mt). Grey cement volume grew 22% YoY (+1% QoQ) at 1.54mt (v/s est. of 1.34mt) led by South volumes growing 39% and North growing 15%.
- Finolex Cables reported a 21.2% year-over-year increase in net sales to Rs. 490.6 crore for the second quarter of FY2011, driven by strong growth in the electrical cables segment. However, operating margins remained under pressure at 8.5% due to high raw material costs.
- Going forward, the company expects continued robust demand from user industries and contribution from new high-tension and extra-high voltage plants. However, margins are forecasted to remain subdued in the near term before improving to around 9.3% in FY2011 and 9.9% in FY2012 as raw material costs stabilize.
- With major capital expenditures completed, strong
JLL Detroit Industrial Insight & Statistics - Q4 2017Harrison West
Overall vacancy fell by six basis points to 5.7 percent, while average asking rents rose by ten cents to $4.98 per square foot. In total, 9.6 million square feet was absorbed in 2017. The total construction pipeline fell just shy of topping 4.0 million square feet, while 1.7 million square feet delivered throughout the year.
Fin 798 Private Equity Class Presentation On Arctic Cat (Final)wunder26kj
CCC Investments is considering acquiring Arctic Cat Inc., a manufacturer of snowmobiles and ATVs, for $182.5 million. CCC would fund the purchase with $63 million in equity and $63 million in senior secured debt. Suzuki Motor Corporation, which owns 33% of Arctic Cat, would rollover its stake valued at $62.1 million. Under CCC's ownership, Arctic Cat would reduce its product line, expand internationally, and conform operations to enable a future sale to Polaris, its largest competitor. CCC's exit strategy would be to trade Arctic Cat to Polaris to capture synergies, or alternatively to Suzuki or another industry player like Bombardier.
Stock Pitch For Pipes And Walves Distribution PowerPoint Presentation Ppt Sli...SlideTeam
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The document provides an overview of SHLO, an automotive components manufacturer. Key points include:
- SHLO is recommended as a Buy with 86% upside potential due to growth factors like stricter emission regulations driving aluminum adoption, expected to rise 300% by 2020.
- The company has expanded production capabilities through plants in Poland and Tennessee to transition from steel to aluminum/magnesium.
- Key growth strategies include capturing the expected 500,000 increase in 2016 US auto sales and retaining customers through a service-oriented model.
The document provides an overview of SHLO, an automotive components manufacturer. Key points include:
- SHLO is recommended as a Buy with 86% upside potential due to growth factors like stricter emission regulations driving aluminum adoption, expected to rise 300% by 2020.
- The company has expanded production capabilities through plants in Poland and Tennessee to transition from steel to aluminum/magnesium.
- Key growth strategies include capturing the expected 500,000 unit increase in 2016 US auto sales and retaining customers through a service-oriented model.
Bekaert held a Capital Markets Day to provide updates on its business segments and financial performance. The event included presentations from the CEO and CFO on the company's Q3 trading update and outlook. Divisional CEOs then provided business updates on each of Bekaert's four segments: Steel Wire Solutions, Rubber Reinforcement, Specialty Businesses, and Bridon-Bekaert Ropes Group. The day concluded with a Q&A session.
JLL Detroit Industrial Insight & Statistics - Q4 2018Harrison West
The fourth quarter of 2018 marked another period of growth for Detroit’s industrial sector. Total vacancy fell ten basis points to 5.3 percent, while average asking rents held steady, currently coming in at $5.49 per square foot. Over 4.2 million square feet of industrial space was delivered in the fourth quarter...
Entertainment Network Ltd: Stock Price & Q4 Results Of Entertainment Network ...hdfcsecurities1
Entertainment Network Limited: Check out the institutional research report of Q4 result of Entertainment Network Ltd. ENIL’s 4QFY18 was in-line but muted. Revenue declined 3.7% YoY owing to high base and cut in ad volumes.
- Entertainment Network's (ENIL) Q1 FY18 results showed a decline, with sales down 9.6% year-over-year to Rs. 987 million and EBITDA margins falling to 11% from 21.6% in FY17 due to price hikes not being absorbed and increased employee costs.
- The analyst cuts FY18 and FY19 EPS estimates by 13-19% and lowers the target price to Rs. 780, citing weak H1 results and rich valuations. Recovery is hoped for in festival season sales in H2 but remains uncertain.
- The report maintains a "Sell" rating given expectations of a slow recovery in ENIL's core advertising
Goodrich Corporation announced financial results for the third quarter of 2007, with income per share up 39% year-over-year. The company increased its full-year 2007 earnings outlook and provided an outlook for 2008 with sales expected between $7.1-7.2 billion and earnings per share of $4.15-$4.30. Key drivers for growth include increasing production rates for commercial aircraft and above market growth for defense programs. The company also announced the pending sale of its aviation maintenance business.
Marico 1QFY15 results ahead of expectations; buy - Motilal OswalIndiaNotes.com
Marico reported first quarter results for fiscal year 2015 that were ahead of expectations. Net sales grew 17.4% driven by strong growth in Parachute coconut oil due to price hikes to offset higher input costs. While gross margins contracted due to rising copra prices, savings in other expenses helped limit the decline in operating margins. The company maintained its medium term strategy of doubling revenues in four years.
Coal India reported mixed Q2 FY16 results with revenue in line with expectations but profit below estimates. Revenue grew 8.2% YoY to Rs. 169,575.9 million due to a 2.7% rise in FSA sales realization, but e-auction realization crashed 28.4% YoY. Lower overburden removal expenses led to a 140 bps rise in EBITDA margins but margins fell sequentially. Profit was impacted by lower other income and higher tax rate though still up 15.2% YoY. Subdued e-auction prices and potential stake sale remain concerns. The analyst maintains a 'Buy' rating with a target price of Rs. 388 per share based on 17.
The document provides an earnings summary and financial review for Trinseo for Q4 and full year 2014. It discusses several key points:
- Trinseo achieved $5.1 billion in revenue and $262 million in adjusted EBITDA for 2014. Adjusted EBITDA excluding inventory revaluation was $326 million.
- Synthetic rubber achieved 28% volume growth for full year 2014, driven by growth in high-performance tires. Styrene margins increased in Q4 due to outages.
- Inventory revaluation was $41 million negative for Q4 due to declining raw material costs. Excluding this impact, adjusted EBITDA was $104 million for Q4.
JLL Detroit Industrial Insight & Statistics - Q2 2017Harrison West
Market sentiment remains positive, yet leasing activity was somewhat muted in the second quarter. Low market availability for quality space has encouraged build-to-suit projects as well as speculative construction.
Marico reported mixed financial results for the second quarter of fiscal year 2011. While overall volume growth was strong at 15%, price cuts taken in core brands constrained top-line growth to 12.5% year-over-year. Earnings grew 14.8% driven by lower taxes and other income, but operating profit rose only 4.5% as gross margins contracted sharply due to rising input costs. The company's international business and hair oils portfolio posted robust growth, but margins are expected to recover only gradually as further price hikes are implemented.
JLL Detroit Industrial Insight & Statistics - Q4 2018Harrison West
The fourth quarter of 2018 marked another period of growth for Detroit’s industrial sector. Total vacancy fell ten basis points to 5.3 percent, while average asking rents held steady, currently coming in at $5.49 per square foot. Over 4.2 million square feet of industrial space was delivered in the fourth quarter, highlighted by new facilities for Amazon, Flex-N-Gate and Penske Logistics.
HeidelbergCement Half-Year Financial Report January to June 2017HeidelbergCement
The document provides an overview of HeidelbergCement's 2017 half year results. Some key points:
- Group profit increased 17% year-over-year to 288 million euros due to successful integration of the Italcementi acquisition.
- Revenue increased 29% and operating EBITDA increased 22% compared to the prior year period. Synergy targets from the Italcementi acquisition were already achieved in June, exceeding expectations.
- Results were solid despite headwinds from weather, Easter timing, and Ramadan. An upward trend was seen starting in May. Cash flow was impacted by increased working capital and an acquisition in the Pacific Northwest. Full year outlook is confirmed.
This presentation by Pirelli & C SpA contains forward-looking statements about future performance that may differ from actual results due to various risks and uncertainties. It provides preliminary financial results for the first quarter of 2011, showing increases in revenues, EBITDA, EBIT, and net income compared to the same period last year, driven by strong pricing actions and efficiencies offsetting higher raw material costs. The presentation also updates Pirelli's full-year 2011 targets and provides additional details on financial and operating performance by business segment.
JK Cement Q1FY15: Buy for a target of Rs520IndiaNotes.com
Net sales grew by 22% YoY (-3% QoQ) to INR8b (v/s est. of INR7.4b). Cement volumes grew by 21% to 1.74mt (v/s est. 1.53mt). Grey cement volume grew 22% YoY (+1% QoQ) at 1.54mt (v/s est. of 1.34mt) led by South volumes growing 39% and North growing 15%.
- Finolex Cables reported a 21.2% year-over-year increase in net sales to Rs. 490.6 crore for the second quarter of FY2011, driven by strong growth in the electrical cables segment. However, operating margins remained under pressure at 8.5% due to high raw material costs.
- Going forward, the company expects continued robust demand from user industries and contribution from new high-tension and extra-high voltage plants. However, margins are forecasted to remain subdued in the near term before improving to around 9.3% in FY2011 and 9.9% in FY2012 as raw material costs stabilize.
- With major capital expenditures completed, strong
JLL Detroit Industrial Insight & Statistics - Q4 2017Harrison West
Overall vacancy fell by six basis points to 5.7 percent, while average asking rents rose by ten cents to $4.98 per square foot. In total, 9.6 million square feet was absorbed in 2017. The total construction pipeline fell just shy of topping 4.0 million square feet, while 1.7 million square feet delivered throughout the year.
Fin 798 Private Equity Class Presentation On Arctic Cat (Final)wunder26kj
CCC Investments is considering acquiring Arctic Cat Inc., a manufacturer of snowmobiles and ATVs, for $182.5 million. CCC would fund the purchase with $63 million in equity and $63 million in senior secured debt. Suzuki Motor Corporation, which owns 33% of Arctic Cat, would rollover its stake valued at $62.1 million. Under CCC's ownership, Arctic Cat would reduce its product line, expand internationally, and conform operations to enable a future sale to Polaris, its largest competitor. CCC's exit strategy would be to trade Arctic Cat to Polaris to capture synergies, or alternatively to Suzuki or another industry player like Bombardier.
Stock Pitch For Pipes And Walves Distribution PowerPoint Presentation Ppt Sli...SlideTeam
Our Stock Pitch For Pipes And Walves Distribution PowerPoint Presentation Ppt Slide Template is the perfect way to pitch your stock. We have researched thousands of stock pitches and designed the most impactful way to convince your investors to invest in your equity. http://bit.ly/31HJQAT
The document provides an overview of SHLO, an automotive components manufacturer. Key points include:
- SHLO is recommended as a Buy with 86% upside potential due to growth factors like stricter emission regulations driving aluminum adoption, expected to rise 300% by 2020.
- The company has expanded production capabilities through plants in Poland and Tennessee to transition from steel to aluminum/magnesium.
- Key growth strategies include capturing the expected 500,000 increase in 2016 US auto sales and retaining customers through a service-oriented model.
The document provides an overview of SHLO, an automotive components manufacturer. Key points include:
- SHLO is recommended as a Buy with 86% upside potential due to growth factors like stricter emission regulations driving aluminum adoption, expected to rise 300% by 2020.
- The company has expanded production capabilities through plants in Poland and Tennessee to transition from steel to aluminum/magnesium.
- Key growth strategies include capturing the expected 500,000 unit increase in 2016 US auto sales and retaining customers through a service-oriented model.
Bekaert held a Capital Markets Day to provide updates on its business segments and financial performance. The event included presentations from the CEO and CFO on the company's Q3 trading update and outlook. Divisional CEOs then provided business updates on each of Bekaert's four segments: Steel Wire Solutions, Rubber Reinforcement, Specialty Businesses, and Bridon-Bekaert Ropes Group. The day concluded with a Q&A session.
The document provides an investor presentation for Winnebago Industries, a manufacturer of motorhomes, travel trailers, and fifth wheels. It summarizes that Winnebago is an industry leader with a non-union workforce of 2,900, revenues of $913.5 million, and market share of 19.1% for motorhomes and 1% for towables. The presentation highlights the recovering RV market, new product opportunities, vertical integration advantages, and improving financial results as Winnebago leverages increased production volumes.
Canadian Tire Proposal Presentation.pptxkgurleen0006
This document provides an overview of Canadian Tire Corporation's marketing plan. It discusses Canadian Tire's role in the Canadian retail space with over $9 billion in annual retail sales. It also summarizes the strategic plans and focuses of Canadian Tire's various business units, including expanding store networks and product offerings. The overall goal is to continue growing sales and revenues across all business units between 2005-2009.
Carlisle Companies is an industrial conglomerate focused on construction materials and interconnect technologies. It has numerous divisions specializing in areas like construction materials, brake and friction, food service, and medical interconnect. Carlisle is benefiting from trends in commercial building and healthcare data cabling demand. Recent acquisitions expanded its medical interconnect business. Valuation analyses using discounted cash flow and comparables imply the stock is undervalued with a target price of $112.
Building supply chain potential in the mining sector in GhanaIsabelle Ramdoo
This presentation looks at the potential to build stronger and deeper supply chains in the mining sector in Ghana. It is based on a comprehensive study that looks at the local economic development in the mining sector in Ghana
This document summarizes the end-of-year results for FY 2009 for DG Company. It provides financial highlights showing strong underlying EBITDA and EBIT of $22.3 billion and $18.2 billion respectively. It then discusses results and accomplishments across the various divisions of DG Company including Petroleum, Production, Development, and Exploration. Key highlights from each division are presented along with their goals and strategic path forward.
Lkq corporation bairds 2017 global consumer technology and services conferencecorporationlkq
The document discusses LKQ Corporation's forward-looking statements policy. It notes that statements in company presentations that are not historical facts are considered forward-looking statements. These statements involve risks and uncertainties. The document also lists risk factors investors should consider that are disclosed in LKQ's annual and quarterly SEC filings.
Total 2018 Investor Day - Strategy and Outlook Total
The document provides an overview of Total's 2018 strategy and outlook. Key points include:
- Maintaining strong cost discipline while growing production consistently
- Managing the portfolio countercyclically to increase cash flow and profitability
- Building a responsible oil and gas company and expanding into low carbon electricity
- Increasing shareholder value through delivering production growth, reducing costs, and creating value through the cycle
- Admiral Group plc reported strong financial results for 2021, with profit before tax increasing 26% to £769 million, driven primarily by strong performance in the first half of the year from the UK motor insurance business.
- UK motor insurance profit increased 28% to £219 million due to higher reserve releases and profit commission, partly offset by higher current year claims.
- International insurance results declined slightly due to a higher loss ratio as the positive impact of Covid was not repeated from 2020.
- Admiral Loans profit improved due to lower credit loss provisions, partly offset by higher acquisition costs from growth.
- Magnesita is moving forward with vertical integration of raw materials through expansion of M-30 sinter production and exploitation of graphite deposits. This will increase competitiveness by reducing reliance on imported materials facing price pressures.
- The company continued its global expansion of the CPP refractory solutions model, adding new contracts in various regions. This positions Magnesita as the sole provider of CPP services worldwide.
- Despite challenges in 3Q2010 like currency impacts, revenues and profitability remained stable due to the company's balanced portfolio and high vertical integration.
- Magnesita is moving forward with vertical integration of raw materials through expansion of its M-30 sinter production and exploitation of graphite deposits. This will increase competitiveness versus competitors who purchase raw materials and help deal with rising raw material prices.
- Despite challenges in 3Q10 like raw material cost pressure and unfavorable exchange rates, Magnesita maintained stable operating profitability through a balanced product portfolio, geographic distribution, and high vertical integration.
- Magnesita continues to have low debt and a balanced debt amortization schedule, allowing it to focus on operations and improve financial indicators despite the challenging macroeconomic environment.
Capital Power April Investor PresentationCapital Power
Capital Power is an independent power producer with over 3,100 MW of generation capacity across Canada and the US. They have a well-positioned fleet mix including gas, wind and coal assets. Capital Power has a proven track record of operational excellence with high plant availability. They also have a strong financial position and investment grade credit ratings. Capital Power is well positioned to deliver consistent dividend growth going forward as they expand their contracted cash flows.
An update on the shifts in China’s relative competitiveness and the implications for procurement executives from a practical point of view and The Beijing Axis experience
William Blair 2017 Growth Stock Conferencecorporationlkq
The document provides an overview of William Blair's 2017 Growth Stock Conference on June 13, 2017. It includes forward-looking statements and discusses LKQ Corporation's mission to be the leading global distributor of vehicle parts and accessories. The document outlines LKQ's evolution through acquisitions, acquisition philosophies, operating segments, and provides an overview of the large and fragmented North American and European vehicle parts markets that LKQ serves.
In this annual Strategic Outlook seminar, we will discuss what the markets have in store for 2018, and beyond.
Presenters:
John Nicola, Chairman & CEO
John will address several issues facing high net worth families:
- How will the Liberals’ tax changes affect financial planning for Canadians?
- How will inflated prices impact future returns?
- Are there best practices for navigating the current environment?
Rob Edel, Chief Investment Officer
Rob will provide an investment roadmap for 2018:
- After a record-breaking period for the S&P 500, what signs might indicate an economic downturn?
- What current events could most affect the economy and investment strategy?
- What should one make of bitcoin, marijuana stocks, electric vehicles, and other hot topics for the upcoming year?
LKQ's European platform acquisitions have created opportunities for procurement and back office synergies by expanding LKQ's footprint across key European markets. The acquisitions include Sator, Rhiag, and Stahlgruber, which have established LKQ as a leading automotive aftermarket parts distributor in several European countries. Going forward, LKQ aims to continue pursuing "tuck-in" acquisitions that provide high synergies and additional capacity in existing markets.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
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Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
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CFA Challenge 2018
1. Finning International Inc. (TSX: FTT)
Team C
February 9, 2018
ALL FIGURES IN C$ MILLION EXCEPT PER SHARE AMOUNTS UNLESS OTHERWISE NOTED
2. Executive Summary
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
1-2017 4-2017 7-2017 10-2017 1-2018
FTT S&P/TSX Composite
Last Twelve Month PerformanceInvestment Recommendation: BUY
Valuation Method Implied Value
DCF
Bear $30
Base $37
Bull $46
Relative Valuation
Mean $30.25-$74.40
Median $32.29-$66.56
Acquisition Multiple
Bucurys (12) $71
Kramer (15) $40.81
Monte Carlo Simulation $37.08
Dividend Discount Model $38.39
Valuation Summary
• Oil recovery - Price of WTI crude to reach $77 USD/barrel in 2023
• Copper recovery is expected as the Chinese economy surges
forward and finishing 2017 with a strong rally.
• Improving ROIC and maintaining cash flow during economic
downturn
• Exclusive CAT Dealer & Size creates strong, stable, long-run
competitive advantage
$15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70 $75
DDM (10 yr & 20 yr Growth Rate)
Montecarlo
Comparable Company Valuation (Mean)
Comparable Company Valuation (Median)
Acquisition Multiples
DCF (Bull and Bear)
52 week Market Range
Current Price:
$33.41
(As at Feb 2 ‘18)
Target Price: $37.79
Upside: 13%
Target
Price:
$37.79
3. Business Overview
Company Highlights
• History: Finning International Inc. (TSX: FTT) was founded by Earl B.
Finning in Vancouver, and is the largest dealer of heavy equipment and
diesel engines made by Caterpillar Inc (NYSE: CAT)
• Geography: Finning serve clients in North America (Western Canada),
Europe (UK & Ireland), and South America (Argentina, Chile, Uruguay,
Bolivia)
• Strategy: High quality products with excellent customer service
• Business Segments: Product Support (48%), Sales of New Equipment
(42%), Sales of Used Equipment (4%), Equipment Rental (6%)
Closing Price $33.41 Enterprise Value $6.8 Bn
52-Week Range $23.98 - 35.56 Beta 1.89
Avg. Daily Volume 388,050 EV/EBITDA 11.52x
Shares Outstanding 168 mm P/E 19.79x
Market Cap $5.48 Bn Dividend Yield 2.65%
Market Profile
Enterprise Value Breakdown Revenue Segmented by Geography
50%
33%
17%
Canada South America UK & Ireland
Revenue Segmented by Line of Businesses
48%
42%
4%
6%
Product Support New Equipment
Used Equipment Rental
4. Business Overview – Company History
Share Performance – Finning International Inc. (TSX: FTT) 1995 - Present
$0
$5
$10
$15
$20
$25
$30
$35
$40
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Shareprice
2001: Finning acquired
Hewden Stuart Plc. in U.K.
2003: Finning acquired the Caterpillar
dealerships in Argentina and Bolivia
2005: Finning acquired 25% ownership in PipeLine
Machinery International
2010: Finning sold U.K. rental business
and obtained dealerships in Northern
Ireland and the Republic of Ireland
2012: Finning acquired the distribution and support
business formerly operated by Bucyrus from
Caterpillar
2015: Finning became the Caterpillar
dealer in Saskatchewan by acquiring
Kramer Ltd.
Financial Crisis
Falling Oil Price
5. Business Overview – Revenue Mix
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Q1
04
Q3
04
Q1
05
Q3
05
Q1
06
Q3
06
Q1
07
Q3
07
Q1
08
Q3
08
Q1
09
Q3
09
Q1
10
Q3
10
Q1
11
Q3
11
Q1
12
Q3
12
Q1
13
Q3
13
Q1
14
Q3
14
Q1
15
Q3
15
Q1
16
Q3
16
Q1
17
Q3
17
New Equipment Used Equipment Equipment Rental Product Support Other
Revenue Mix– Finning International Inc. Q1’04-Q3’17
• Product Support (48%): Maintenance and repair services
• Sales of New Equipment (42%): Distribution of CAT products, consisting of
vehicles for operations (tractors, forklifts, etc.), underground equipment,
various power systems, and other merchandise complementary to CAT
products
• Sales of Used Equipment (4%): Resale of used CAT products
• Equipment Rental (6%): Fleets of CAT products specifically for rental
FTT (Q3’ 17) Revenue Mix
Business Segments
6. Business Overview – Geographical Segments
$0
$5
$10
$15
$20
$25
$30
$35
$40
0
1
2
3
4
5
6
7
8
'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18
SharePrice
Revenue(CADBn)
Canada South America UK & Ireland Share Price
Revenue Breakdown– Finning International Inc. 1995 - 2018
*Projected yearly revenue for 2017 according to the internal model
Q3’ 17 Consolidated EBIT Breakdown
o Dealerships in British Columbia, Yukon, Alberta, Saskatchewan, the Northwest Territories, and a
portion of Nunavut
o Main Customer Industry: Mining, forestry, construction, pipeline/oil field construction, agriculture
o Dealerships in Chile, Argentina and Bolivia
o Main Customer Industry: 80% of SA revenue generated from Chile in the mining sector
o Main Customer Industry: Oil & gas, electric power, marine, industrial applications,
earth moving & construction, industrial & waste, extraction & paving and agriculture
Rotary Drills, MD6240, Caterpillar
50%Canada
33%
17%
South
America
UK & Ireland
7. Environmental
o Implementation of energy efficiency
policy
o Encouraging use of emission reducing
Caterpillar products
o Reduced fuel consumption, support for
renewable products
o Tracking of carbon emissions
o Rights to shareholders implemented
in shareholder rights plan
o 23% of women on board of directors
o Finning scores in the 61st percentile
of all companies on the S&P/TSX
Composite
Environmental, Social, Governance
Safety and employee training policies Increasing number of women on the board
o Provide comprehensive safety training to
each year to employees like risk
assessment, incident investigation,
emergency response, induction training
o Operational controls – Implementation
and monitoring of controls to mitigate
risks in operations and activities
Bloomberg ESG Score
Social Governance
17
18
19
20
21
22
23
24
2011 2012 2013 2014 2015 2016
Source: Bloomberg
21% Increase in ESG Score
Source: Finning.com
0%
5%
10%
15%
20%
25%
2011 2012 2013 2014 2015 2016
8. Management Track Record and Team
1999
Douglas W.G.
Whitehead serves as
CEO of Finning from
2000 to 2008. He now
serves the chairman on
the board of directors
2018
Revenue Grows at 5.28% CAGR
2003
Finning South America
sees expansion into
Argentina and Bolivia
and officially becomes
largest CAT dealer
2013
Scott Thomson becomes
president and CEO. He has
improved FTT cost structure
and prepared them well to
thrive in a stronger economy
Source: Finning.com
2010
Finning U.K. sees
furthers expansion into
Northern Ireland and
the Republic of Ireland
2015
Western Canada growth
continues as Finning acquires
Kramer Ltd. To become the
CAT dealer in primary
Saskatchewan
9. Industry Analysis
• Cyclical: Highly sensitive to commodity prices
• Sales of New Equipment: Quickly pick up when the economy is doing well
• Mature Stage in Canada: Seeing 3% growth in best periods
• Strong Growth in U.K. Seeing almost 10% growth rates (CAGR)
Industry Characteristics
27
28
29
30
31
32
33
34
35
06 07 08 09 10 11 12 13 14 15 16
InvestmentinBillions(SAAR)
Year
Source: Statistics Canada
Canada Gross Fixed Capital Formation: Industrial
Equipment
88
90
92
94
96
98
100
102
07 08 09 10 11 12 13 14 15 16 17
Chile Mining Production Index
Year
Source: Institudo de Estadisticas
8
10
12
14
16
18
09 10 11 12 13 14 15 16 17
InvestmentinBillionGBP
U.K. Investment in Machinery, Equipment
Year
Source: Bank of England
• Supplier Power: High/Medium - exclusive CAT dealer
• Buyer Power: High – Demand driven industry
• Substitute Threats: Low – No close direct substitute for Finning
• New Entrants Threat: Low – High capital requirements
• Rivalry: High – Plenty of small firms and indirect competitors
Porter’s Five Forces Summary
10. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
United Rentals
Toromont
Finning
Product Support Product Rentals Product Used Product New
Competitive Positioning
Economies of scale: Exclusive rights to distribute CAT products in
assigned territories
Investment in Workforce: Investing in workforce results in strong
customer service driven model
Digital transformation: Finning Digital, provides faster and better
performance and innovative new products
Relationship with Caterpillar: By exclusively supplying CAT products
Finning receives Caterpillar’s competitive advantages
Competitor Revenue Percentage Breakdowns
95
115
135
155
175
195
NormalizedReturn(Jan=100)
CAT 2nd Best Performing Stock on DJIA in 2017
CAT
DJIA
11. Caterpillar(CAT) Overview
0.8
1
1.2
1.4
1.6
2010 2011 2012 2013 2014 2015 2016
Industry
Revenue
(FY 2016)*
$1,951
$1,389
$604 **
$2,774
$86
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
CAT Deer & Co. Komatsu Hitachi Terex
Industry R&D
Spending
(FY 2016)
* Normalized to 2010 Revenue =1
** JPY/USD 0.008563 as at Dec. 30, 2016
0%
1%
2%
3%
4%
5%
6%
2010 2011 2012 2013 2014 2015 2016
CAT Deere & Co. Komatsu Hitachi Terex
Industry R&D
as % of
Revenue
• CAT revenue decreased year
over year since 2012
• Revenue of construction and
mining equipment
manufacturers are all low
• CAT spends great amount of its
revenue in research and
development
• Only Deer& Co outspends in
proportion to revenue
• In absolute value, CAT is again
top spender only second to
Hitachi
FTT’S COMPETITIVE ADVANTAGE
12. UK & Ireland
o Two primary operating segments: equipment
solutions for construction and power systems
o U.K. grew at 2.2% in 2016, with Ireland
expanding by 5.2 in 2016.
o Significant contraction in demand from key
markets such as coal, steal and other sectors.
o Uncertainty around Brexit impacts the demand
o Outlook: 1.2% - 2% growth is estimated in UK’s
economy in ‘17 and ’18 with the country
recovering from post-referendum recession
o Chile: leader in the mining of copper; 25% of
GDP comes from mining activity
• GDP is expected grow by 3% in ’18
• China, the largest copper consumer is
expected to increase copper consumption
at 2% a year for the next 5 years
o Argentina: high-income economy, 3rd in LATAM
• 26.9% inflation rate & 28.8% interest rate
• Major miner of lithium
o Outlook: Strengthening economy in SA
Demand Review
0
20
40
60
80
100
120
140
160
0
100
200
300
400
500
600
Q1
04
Q1
05
Q1
06
Q1
07
Q1
08
Q1
09
Q1
10
Q1
11
Q1
12
Q1
13
Q1
14
Q1
15
Q1
16
Q1
17
New Equipment Sales in Canada
Oil (WTI) Price
New Equipment Sales in Canada vs Oil Price New Equipment Sales in SA vs Copper Price
o Severe headwinds in Canada due to the economy
slowdown
• Low oil and commodity prices
• Lower activity and capital expenditure in
mining, oil & gas and construction sectors.
o Finning’s growing market share and expansion
through M&As (Kramer Ltd, Former Bucyrus
operations)
o Outlook: Canada’s recovery from the oil crisis;
expected 2% GDP growth rate
0
100
200
300
400
500
600
700
800
$0
$5
$10
$15
$20
$25
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
(Billions)
Forestry and logging
Mining and oil & gas extraction
Construction
Fisher Commodity Price Index (Canada)
CapEx, Machinery and Equipment
(USD/Barrel)
0
2
4
6
8
10
12
0
50
100
150
200
250
300
350
400
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
New Equipment Sales in South America
Copper Price (USD ‘000/TMT)
Canada South America
13. Demand Driver – Public Spending
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Canada South America UK
FTT Forecasted Revenue
Finning’s major selling products in the Britain region is the
power system.
72
110
0
20
40
60
80
100
120
2014 2025
9.7
26.6
0
5
10
15
20
25
30
2014 2025
UK Gov’t INFRASTRUCTURE Spending (£ Bn)
UK Public Inv’t in POWER GENERATION (£ Bn)
“Overall, utilities infrastructure spending is forecast to
grow by an average annual rate of 8% over the period
to 2025.”
– PWC and Oxford Economics, Building UK’s future
14. Demand Driver – Commodity Prices
0.0
1.0
2.0
3.0
4.0
0
20
40
60
80
100
120
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
WTI Crude (USD/Barrel) Revenue from Canada ($ Bn)
Copper Price** vs Revenue from South AmericaOil Price* vs Revenue from Canada
* Source: Conference board of Canada
** Source: International Monetary Fund; Copper Price was used as a proxy to expected copper production
0
500
1,000
1,500
2,000
2,500
3,000
4,800 5,000 5,200 5,400 5,600 5,800 6,000
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
35 45 55 65 75 85 95
Regression Results
Correlation 𝑹 𝟐 P-Value
0.644 0.415 0.017
Regression Results
Correlation 𝑹 𝟐 P-Value
0.660 0.435 0.014
Backtesting Results (Oil vs Canada) Backtesting Results (Copper Production in Chile vs S. Am)
Oil (WTI) Price (USD/Barrel) Copper Production (tmt)
SouthAmericanRevenue
CanadaRevenue
1.5
1.7
1.9
2.1
2.3
2.5
2.7
2.9
4
5
6
7
8
9
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Copper (USD '000/MT) Revenue from South America ($ Bn)
15. Financial Analysis
9% 9%
10%
11%
12%
7%
8%
9%
10%
11%
12%
13%
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
2,908
1,838
3,114 3,182
1,500
1,700
1,900
2,100
2,300
2,500
2,700
2,900
3,100
3,300
2013 2016
New Equipment Sales Product Support Revenue
• Free Cash Flow - Remains strong, even during poor economic times
• Product Support Helps Hedges Economic Risks – Product support revenue
remains constant during economic downturn
• Constant Dividend Growth – Dividends have grown consistently, even in
bad economic conditions
• Efficient Capital Allocation – Finning has seen strong ROIC growth and
recovery after turbulent times
Finning Remains Stable When Economy Is Not
Select Key Financials (in CAD mm)
2012 2013 2014 2015 2016
Revenue 4,657 4,676 4,856 4,376 4,155
Revenue Growth -31% 0.40% 3.90% -9.90% -5.10%
Cost of sales 2,645 2,663 2,842 2,361 2,139
Gross Profit 1,483 1,555 1,556 1,542 1,280
Gross Margin 32% 33% 32% 35% 31%
EBITDA 701 737 720 126 357
EBITDA Margin 13% 16% 15% 3% 9%
Effective Tax Rate 19% 22% 24% 15% 19%
FCF -37 441 483 325 370
FTT ROIC (3Q ‘16 – 3Q ’17)
FTT’s Product Support Revenue Remains Strong
17. Valuation - Summary
Valuation Range Under Different Models & Assumptions
Valuation Method Target Price
DCF
Bear $30
Base $37
Bull $46
Relative Valuation
Mean $30.25-$74.40
Median $32.29-$66.56
Acquisition Multiple
Bucurys (12) $71
Kramer (15) $40.81
Monte Carlo Simulation $37.08
Dividend Discount Model $38.39
Weighted Average Cost of Capital
Interest Cost 4.64%
Tax rate 30%
Debt 775
Debt as % of Total Capital 12.7%
Cost of Debt 3.25%
Risk Free Rate 2.02%
Beta 1.89
Market Risk Premium 7%
Equity as % of Total Capital 87.3%
Weighted Average Cost of Capital 10.7%
$15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70 $75
DDM (10 yr & 20 yr Growth Rate)
Montecarlo
Comparable Company Valuation (Mean)
Comparable Company Valuation (Median)
Acquisition Multiples
DCF (Bull and Bear)
52 week Market Range
Current Price:
$33.41
(As at Feb 2 ‘18)
Target Price: $37.79
Upside: 13%
18. Valuation – Discounted Cash Flow
Intrinsic Value vs 52 Week Market Range
Sensitivity Analysis
DCF Break Down
Free Cash Flow Buildup 2018P 2019P 2020P 2021P 2022P
EBIAT 274 284 293 300 312
Depreciation & Amortization 251 258 331 344 429
Net Change in Working Capital 90 50 42 40 51
Capital Expenditures 105 125 129 166 172
Unlevered FCF 329 367 452 439 518
PV of Unlevered FCF 243 244 272 264 312
Cash & Equivalents 516
Long-term Debt 1291
Net Debt 775
Unlevered FCF in last period 518
FCF (2023) 526
Long-term growth (g) 1.5%
Terminal value 9637
Present value of terminal value 5794
PV unlevered cash flows 1335
Enterprise Value 7128
Less: Net Debt 775
Equity Value 6,353
Dilutive Shares Outstanding 168
Equity Value per Share 37.79
Upside 13%
34.1
24.0
42.4
35.6
22
27
32
37
42
DCF Value at 0.5%-2.5% Perpetuity Range 52 Week Market High/Low
Long term growth rate (g)
0.5% 1.0% 1.5% 2.0% 2.5%
8.7% 46.01 48.97 52.33 56.19 60.67
9.7% 39.43 41.67 44.19 47.03 50.27
10.7% 34.11 35.86 37.79 39.96 42.38
11.8% 29.48 30.84 32.34 33.99 35.81
12.9% 25.65 26.74 27.92 29.20 30.62
WACC
Current Price: $33.41
(As at Feb 2 ‘18)
19. Valuation – Comparable Company
Type Industrial Equipment Distributor Industrial Service Provider Industrial Equipment Rentals
Company Toromont HD Supply Holdings H&E Wajax McGrath Rental United Rentals
EV ($ mm) 4,421 11,084 2,010 619 1,773 23,426
Sales ($ mm) 1,867 7,439 978 1,222 424 5,762
Alternative
Products
Finning’s
Products
20. Company
Valuation – Comparable Company
Ticker EV/Sales EV/EBITDA EV/EBIT P/E
TMTNF 2.37x 15.07x 20.42x 28.48x
HDS 1.49x 12.03x 13.42x 13.63x
HEES 2.05x 6.65x 18.15x 37.39x
WJX 0.51x 12.02x 22.99x 44.07x
URI 4.07x 8.49x 16.56x 25.76x
MGRC 4.18x 10.85x 22.41x 30.22x
FTT 1.20x 11.52x 17.94x 19.79x
20 30 40 50 60 70 80
Mean
Median
Implied Equity Value per Share ($)
21. Valuation – Precedent Transaction Analysis
o On May 6, 2015, Finning announced it has reached
an agreement to purchase the operating assets of
the Cat dealership of Kramer Ltd. for approximately
$230 million. Finning became the approved Cat
Dealer in Saskatchewan in July 2015.
o The acquired dealership business generated
approximately $275 million in revenue in 2014 and
$107 million in the first half of 2015.
o Finning generated $3,175 million in the first half of
2015
Transaction Summary
o On Jan. 18, 2012, Finning announced it has reached
an agreement with Caterpillar to acquire from
Caterpillar the distribution and support business
formerly operated by Bucyrus in portions of South
America and Western Canada and in the U.K.
o The transaction is valued at approximately USD $465
million (CAD $460 million). In 2012, The acquired
distribution and support businesses generated $233
million in revenue.
o Finning generated 6,622 million in revenue in 2012.
Target Firm Valuation
Purchase Price $241M
Implied Equity Value $7,151M
Revenue (2015, Restated) $6,275M
P/S (LTM) Ratio 1.14x
Acquisition Multiple Valuation
Revenue (LTM, Q3'17) $6,021M
Acquisition Multiple 1.14x
Implied Equity Value $6,862M
Shares Outstanding (mm) 168
Implied Share Price $40.81
Purchase Price $460M
Implied Equity Value (using revenue %) $13,074M
Revenue (2012) $6,622M
P/S (LTM) Ratio 1.97x
Acquisition Multiple Valuation
Revenue (LTM, Q3'17) $6,021M
Acquisition Multiple 1.97x
Implied Equity Value $11,887M
Shares Outstanding (mm) 168
Implied Share Price $70.70
22. Valuation – Others
$0.10 $0.32 $0.73
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
1997 2007 2017
10 year 20 year
Dividend Growth Rate 8.77% 10.45%
2018E Dividend ($) 0.76 0.76
Cost of Equity 12.43% 12.43%
Share Price ($) 20.75 38.39
Monte Carlo Simulation – Using return and volatility Discounted Dividend Growth Model
Summary Statistics for Finning
Stock’s Periodic Daily Return
Average Mean 0.0456%
Standard Deviation 1.9054%
Drift 0.0275%
Statistical Results
Simulation paths 100,000
Minimum $ 10.44
Maximum $ 123.28
Mean $ 37.08
Median $ 35.43
Skewness 0.948
Kurtosis 4.6677
5% confidence level 21.52
95% confidence level 58.19
23. Risk Assessment – Macroeconomic Risks
Likelihood
High
Likelihood
Low
Impact
High
Impact
Low
MR
BR
CR
FR
0%
10%
20%
30%
40%
50%
2012 2013 2014 2015 2016
Argentina Chile Colombia
0
20
40
60
80
100
120
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Revenue WTI Crude
Argentina Inflation Bear Case Forecast vs WTI Crude
• Inflation in Argentina/Chilean economy dependency on copper
• Foreign Exchange Risks – Sources products through the US and records in
Canadian dollars . Finning engages in derivatives hedging
• Commodity price fluctuation risk – Broad operations help hedge this out
• Impact on valuation: Bear case scenario
• WTI crude to improve 1% a year
• Copper production of Chile stays at 2017 levels
• U.K. spending on infrastructure to growth at 2% a year, and margins to
fall from 29% to 26%
• Predict a 10% downside
Macroeconomic Risks
24. Risk Assessment – Business & Financial Risks
0.10 0.10 0.10
0.17
0.21
0.24
0.32
0.40
0.44 0.45
0.49
0.53
0.57
0.64
0.72 0.73 0.73
0.76
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
1997 1998 1999 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Finning Annual Dividend
Likelihood
High
Likelihood
Low
Impact
High
Impact
Low
MR
BR
CR
FR
• Ecommerce: Threat of product
support revenue line falling from
availability of parts through online
vendors
• Unforeseen events: weather,
downtime, unexpected breaks in
activity
Business Risks
• Dividend increases during a
downturn may impend cash flow
• Capital intensive nature of the
industry increases reliance on
external financing. Lower cash
flow impacts ability to pay back
debt and secure loans
Financial Risks
25. Risk Assessment – Caterpillar Risks
Likelihood
High
Likelihood
Low
Impact
High
Impact
Low
MR
BR
CR
FR
• Sudden change in demand/acceptance for Caterpillar products
• Caterpillar’s ability to supply on a timely basis
• Caterpillar’s ability to keep up with technological change
• Finning has agreement with CAT that contracts can terminated with
90 days notice in Canada, and 6 months in South America
• Caterpillar tightening credit availability in rough times
• Finning has a strong relationship with Caterpillar and holds power
over them, being their largest supplier. No immediate risk is
present
Caterpillar Risks
Earl Finning (left) founded FTT in 1933 with the sole distribution rights to sell CAT products
26. Conclusion
Recovering
Commodity Price
• Oil recovery-OPEC
oil agreement
• Copper recovery-
Chinese economy
Strong Free Cash
Flow and Capital
Efficiency
Strong Competitive
Advantage
• Product and
Service Quality
• Digital
Transformation
• Human Capital
BUY
$ 37.79
Target Price
Upside
13%
$ 33.41
Closing Price
Feb 2nd 2018
• Free cash flow
keeps positive
• Improving return
on invested capital
29. Appendix A: Calculations
Acquisition Multiple Valuation
Transaction: Finning acquires Kramer Saskatchewan
Announcement Date 06-May-15
Purchase Price $241
Implied Equity Value $7,151
Revenue (2015, Restated) $6,275
P/S (LTM) Ratio 1.14x
Acquisition Multiple Valuation
Revenue (LTM, Q3'17) $6,021
Acquisition Multiple 1.14x
Implied Equity Value $6,862
Shares Outstanding (in millions) 168
Implied Share Price $40.81
Transaction: Finning to acquire from Caterpillar the distribution and support
business formely operated by Bucyrus
Announcement Date 18-Jan-12
Purchase Price $460
Implied Equity Value (using revenue %) $13,074
Revenue (2012) $6,622
P/S (LTM) Ratio 1.97x
Acquisition Multiple Valuation (P/S Ratio)
Revenue (LTM, Q3'17) $6,021
Acquisition Multiple 1.97x
Implied Equity Value $11,887
Shares Outstanding 168
Implied Share Price $71
30. Appendix A: Calculations
Monte Carlo Simulation – 1 year Forward
Geometric Brownian Motion
Stochastic differential equation for GBM:
When applying:
31. Appendix A: Calculations
Simple Linear Regression – WTI Oil Price and FTT Revenue from Canada
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.659851669
R Square 0.435404225
Adjusted R Square 0.384077336
Standard Error 455.0822828
Observations 13
ANOVA
df SS MS F Significance F
Regression 1 1756821.167 1756821.167 8.482965475 0.014124375
Residual 11 2278098.725 207099.8841
Total 12 4034919.892
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 1430.828049 481.0239285 2.974546514 0.012642169 372.1015212 2489.554578 372.1015212 2489.554578
X Variable 1 18.47654454 6.343762328 2.912553085 0.014124375 4.514017798 32.43907128 4.514017798 32.43907128
32. Appendix A: Calculations
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.644169098
R Square 0.414953827
Adjusted R Square 0.361767811
Standard Error 445.7407362
Observations 13
ANOVA
df SS MS F Significance F
Regression 1 1550125.886 1550125.886 7.801934799 0.017486342
Residual 11 2185532.843 198684.8039
Total 12 3735658.729
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -6536.768654 2951.994627 -2.214356556 0.04884512 -13034.06502 -39.47228783 -13034.06502 -39.47228783
X Variable 1 1.512160303 0.541373102 2.793194372 0.017486342 0.320606138 2.703714467 0.320606138 2.703714467
Simple Linear Regression – Copper Production in Chile and FTT Revenue from South America
33. Appendix B: Oil Demand
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000 Feb-07
Aug-07
Feb-08
Aug-08
Feb-09
Aug-09
Feb-10
Aug-10
Feb-11
Aug-11
Feb-12
Aug-12
Feb-13
Aug-13
Feb-14
Aug-14
Feb-15
Aug-15
Feb-16
Aug-16
Feb-17
Aug-17
Oil & Gas Exploration Canada (Market Value $mm, 2-yr
moving average)
Source: Canadian Association of Petroleum Producers
• According to an outlook done by the Canadian Association of
Petroleum producers, Canada’s crude oil supply is forecasted to grow
by 5% until 2022, then slow to 2% per year until 2030 (growing by 1.5
million barrels per day in 2030)
• Success depends on the execution of Canada to build infrastructure to
support the increased supply
34. Appendix B: Copper Demand
Copper smelter in Chile: Source: Goldman Sachs
Demand Drivers
• Electric cars use twice as much copper as battery powered cars
• Goldman Sachs has forecasted short-term 1.8% increase in copper
demand coming from China (50% of world demand). They quoted a
slowdown in growth due to a rebalancing of the economy and slowed
production
• One Belt One Road Initiative out of China, where they plan to spend
between $4-8 trillion USD on a road that connects Eurasian countries
(Still highly speculative project)
• In the US President Donald Trump announced a call for a $1,5 trillion
infrastructure during his state of the union speech. The U.S. Is the
second largest consumer of copper worldwide
• Risks to the forecast include over optimism in forecasts and Chilean
mines going on strike (Their was a 43 day strike in Escondida, the
worlds largest copper mine in 2017)
4,200
4,400
4,600
4,800
5,000
5,200
5,400
5,600
5,800
6,000
Q1-13
Q2-13
Q3-13
Q4-13
Q1-14
Q2-14
Q3-14
Q4-14
Q1-15
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Chile Copper Exports (Bil.Ch pesos)
35. Appendix C: Addendum
STRENGTH WEAKNESSES
o Strong supplier-Caterpillar Inc: Robust and cost
efficient product line with great intangible assets
o Finning has exclusive contractual rights to the
distribution of Caterpillar products in assigned
geographical regions
o Finning invests heavily in talents recruiting in order to
keep an outstanding human capital
o Customer service focused model: great after-sale
service provided to its clients
o Finning focuses on transforming itself into a digital
workforce
o Obsolescence: Carrying large inventory
o Bargaining power of supplier is high (CAT being the
only supplier). Finning’s profitability largely
depending on how well CAT is doing
OPPORTUNITIES THREATS
o Economic environment in South America is improving
o Operating in a monopolistic industry, Finning is the
leader in CAT product distribution network
o Economic of Scale: hard for potential competitors to
enter industrial equipment industry
o Volatile commodity prices: Finning’s revenue highly
relating to commodity prices
o Foreign competition (US, etc.) remains strong
o Limited industry revenue growth
o UK Economy faces uncertainty
SWOT Analysis
36. Appendix C: Addendum
Bargaining Power of Suppliers The bargaining power of suppliers is high. Since Finning is carrying products exclusively from CAT, there
is high bargaining power from its supplier CAT since CAT may terminate any supply contracts with 90-
day notice. There would not be any substitute suppliers for Finning which leads to high bargain power
from the supplier CAT.
Bargaining Power of Buyers There is moderate bargaining power of buyers of Finning because of two factors. Many other
companies that buy from Finning obtain exclusive right to distribute CAT products in a market. Buyers
are locked in once a product is purchased through long term warranty contracts and training.
Meanwhile, the industrial equipment sector is considered demand-driven. The availability of goods
imposes little influence on demand. Price is mainly determined by market condition. This could be a
potential risk for Finning. The high market share won’t necessarily bring market/pricing power in the
playing field.
Rivalry Among Competitors The rivalry among competitors is considered high. Although Finning being a monopoly in CAT supplies,
other industrial tool companies exist as competitors.
Threat of Substitutes Medium threat of substitutes: Finning being one of the monopolies in the industrial equipment sector,
yet there are a great amount of substitutes especially in North America such as Toromont, another CAT
distributor.
Threat of New Entrants Low threat of new entrants: high capital requirements: witching costs for entering the equipment
industry. Additionally, most of the contracts are long-term-oriented which indicates high customer
loyalty to established brands.
Porter’s Five Forces Analysis