Atwood Oceanics is an offshore drilling company that owns technologically advanced rigs. The presentation recommends Atwood as a buy with a 12-month price target of $63, representing 36.6% upside. It cites Atwood's premium ultra-deepwater assets, unsurpassed margins, and organic EPS growth driven by investments in new "A-class" drillships as reasons for the positive outlook despite a downward trend in the overall offshore drilling industry. A discounted cash flow valuation ranges from $64.97 to $87.04 per share based on projections of Atwood's contracted backlog and operating margins.
Cleveland Research Company 2016 Stock Pitch Competition- Tempur Selay Finalist Alexander Liscum
One of 5 finalists chosen out of 25 competitive teams to present to equity research professionals in the 2016 CRC Stock Pitch Competition at Miami University.
2015 - Cleveland Research Company Stock Pitch Competition Runner UpMichael T. Loffredo
Cytec Industries is positioned to benefit from growth in the aerospace, automotive, and mining industries. It has substantial contracts with Boeing and Airbus to supply lightweight composite materials for commercial aircraft. Legislation requiring automakers to improve fuel efficiency will increase demand for composites. In mining, decreasing ore grades are driving increased production and use of Cytec's separation chemicals. The analyst recommends Cytec as a buy with a 12-month price target of $70.50, representing 30.51% upside.
Miami University 2016 Harvard Financial Analyst Symposium Competition FinalistMichael T. Loffredo
This document provides an analysis of Expeditors International of Washington, Inc. It begins with an investment thesis that Expeditors faces challenges including inflated earnings estimates, decreasing global trade, margin compression, and a loss of management. It then provides an overview of the company and industry dynamics. Performance headwinds for Expeditors are discussed, including unsustainable margins from port strikes. A valuation analysis is presented using comparable companies and a discounted cash flow model, arriving at a target price of $40. The document concludes with a recommendation to sell Expeditors.
This document provides an overview and analysis of Skipper's Sporting Goods for potential transaction options. It summarizes the company's position in the sporting goods industry, growth opportunities, and financial projections. Valuation methods, including leveraged buyout, IPO, and precedent transactions, imply an enterprise value range of $1,400-$1,600 million. The recommendation will evaluate strategic acquisition, sponsor buyout, IPO, and maintaining the status quo based on maximizing shareholder value and management goals.
We recommend Cintas Corporation as a HOLD with a 12-month price target of $81, representing an upside of 0.77% from the current price of $81.32. Key factors leading to a neutral outlook include limited opportunities for organic growth, continued emphasis on cross-selling and acquisitions to improve margins, and an aggressive capital return plan including share buybacks.
William Blair 2016 Investment Banking Case CompetitionAlexander Liscum
The document summarizes an investment analysis of Kona Adventures, a travel and entertainment services company. It provides an overview of the travel industry, highlights Kona's business model and financials, and evaluates the company's valuation using DCF, comparable company, and precedent transaction analyses. The summary recommends a sale of Kona to American Express Global Business Travel at a price of $675-750 million based on synergies from the acquisition.
Miami University 2015 William Blair I-Banking Competition WinnerMichael T. Loffredo
Armstrong Foods is a leading food and beverage distributor seeking a potential sale. Valuation analyses value the company between $450-480 million based on comparable company and precedent transaction multiples of 8-10x EBITDA. A sale to a financial sponsor is recommended due to potential synergies, though a strategic buyer could work if they retain management. Key considerations include the fragmented distribution industry and Armstrong's diversified customer and product base.
Miami University 2016 Cleveland Research Company Stock Pitch Competition WinnerMichael T. Loffredo
Orbital ATK is an aerospace and defense company that provides products and services to government and commercial customers. The presentation recommends Orbital ATK as a buy with a 12-month price target of $110, representing 27.1% upside. Key points include Orbital ATK benefiting from international military spending increases, growth in commercial aircraft deliveries, and opportunities in satellite servicing. Risks include competition from larger players and potential issues executing innovative contracts.
Cleveland Research Company 2016 Stock Pitch Competition- Tempur Selay Finalist Alexander Liscum
One of 5 finalists chosen out of 25 competitive teams to present to equity research professionals in the 2016 CRC Stock Pitch Competition at Miami University.
2015 - Cleveland Research Company Stock Pitch Competition Runner UpMichael T. Loffredo
Cytec Industries is positioned to benefit from growth in the aerospace, automotive, and mining industries. It has substantial contracts with Boeing and Airbus to supply lightweight composite materials for commercial aircraft. Legislation requiring automakers to improve fuel efficiency will increase demand for composites. In mining, decreasing ore grades are driving increased production and use of Cytec's separation chemicals. The analyst recommends Cytec as a buy with a 12-month price target of $70.50, representing 30.51% upside.
Miami University 2016 Harvard Financial Analyst Symposium Competition FinalistMichael T. Loffredo
This document provides an analysis of Expeditors International of Washington, Inc. It begins with an investment thesis that Expeditors faces challenges including inflated earnings estimates, decreasing global trade, margin compression, and a loss of management. It then provides an overview of the company and industry dynamics. Performance headwinds for Expeditors are discussed, including unsustainable margins from port strikes. A valuation analysis is presented using comparable companies and a discounted cash flow model, arriving at a target price of $40. The document concludes with a recommendation to sell Expeditors.
This document provides an overview and analysis of Skipper's Sporting Goods for potential transaction options. It summarizes the company's position in the sporting goods industry, growth opportunities, and financial projections. Valuation methods, including leveraged buyout, IPO, and precedent transactions, imply an enterprise value range of $1,400-$1,600 million. The recommendation will evaluate strategic acquisition, sponsor buyout, IPO, and maintaining the status quo based on maximizing shareholder value and management goals.
We recommend Cintas Corporation as a HOLD with a 12-month price target of $81, representing an upside of 0.77% from the current price of $81.32. Key factors leading to a neutral outlook include limited opportunities for organic growth, continued emphasis on cross-selling and acquisitions to improve margins, and an aggressive capital return plan including share buybacks.
William Blair 2016 Investment Banking Case CompetitionAlexander Liscum
The document summarizes an investment analysis of Kona Adventures, a travel and entertainment services company. It provides an overview of the travel industry, highlights Kona's business model and financials, and evaluates the company's valuation using DCF, comparable company, and precedent transaction analyses. The summary recommends a sale of Kona to American Express Global Business Travel at a price of $675-750 million based on synergies from the acquisition.
Miami University 2015 William Blair I-Banking Competition WinnerMichael T. Loffredo
Armstrong Foods is a leading food and beverage distributor seeking a potential sale. Valuation analyses value the company between $450-480 million based on comparable company and precedent transaction multiples of 8-10x EBITDA. A sale to a financial sponsor is recommended due to potential synergies, though a strategic buyer could work if they retain management. Key considerations include the fragmented distribution industry and Armstrong's diversified customer and product base.
Miami University 2016 Cleveland Research Company Stock Pitch Competition WinnerMichael T. Loffredo
Orbital ATK is an aerospace and defense company that provides products and services to government and commercial customers. The presentation recommends Orbital ATK as a buy with a 12-month price target of $110, representing 27.1% upside. Key points include Orbital ATK benefiting from international military spending increases, growth in commercial aircraft deliveries, and opportunities in satellite servicing. Risks include competition from larger players and potential issues executing innovative contracts.
Kona Adventures is a leading provider of travel and entertainment services that maintains its market position through organic and inorganic growth. Valuation analyses place Kona's enterprise value between $560-600 million based on 2016E revenue of $206.2 million and EBITDA of $52.6 million. Comparable analyses and precedent M&A transactions support a valuation range of $552.1-604.7 million. It is recommended that Kona pursue a near-term sale to a strategic buyer given compelling financials and historically strong market conditions.
Mobileye is a technological leader in autonomous driving poised to benefit from regulations requiring automatic emergency braking by 2022. It has substantial contracts with automakers like GM and technology like EyeQ that provides effective vision-based driver assistance. The analysts recommend Mobileye as a buy with a $60 price target, a 50% upside.
This document provides an analysis of Patterson Education Group (PEG) for a case competition. It includes:
- An executive summary that outlines PEG's unique personalized high school model and strong projected growth rates.
- An industry overview of the growing K-12 education sector and education technology industry.
- An analysis of PEG's business model, growth opportunities, and financial projections. Strengths include barriers to entry and technological advantages.
- A valuation of PEG using precedent transactions, comparable company analyses, and a discounted cash flow model, resulting in an estimated valuation range of $170-300 million.
- A discussion of strategic options such as organic growth through new schools and technology expansion, or
Skywest was the largest regional airline in 2009 during an economic downturn that greatly impacted the airline industry. It faced challenges including rising costs, falling profits, and disputes with partners. While Skywest performed most maintenance internally to control costs, expenses increased as it acquired new aircraft and outsourced non-routine maintenance. Its profit margins declined between 2008 and 2009 as operating expenses grew despite higher revenues. The regional airline industry was highly competitive and cyclical, closely tied to the economy.
SkyWest, Inc. is a regional airline that operates 316 aircraft and has over 11,000 employees. It provides service to 159 destinations in North America through partnerships with major carriers like United, Delta, US Airways, and Alaska Airlines. SkyWest aims to be the airline, employer, and investment of choice by focusing on excellent customer service and expanding its geographic reach and partnerships. While it benefits from experience and sole operating routes, SkyWest faces challenges from competition and reliance on major partners. Its financial performance declined from 2007 to 2008 as margins decreased. To strengthen its position, SkyWest could pursue new partnerships, international expansion, and regulatory changes.
The document discusses a strategy for D-Motors to improve its financial performance. It recommends rebranding to target younger customers, leveraging predictive analytics to improve business insights, and flattening the corporate structure. A 5-year plan includes rolling out new technologies, expanding marketing, and achieving 49% revenue growth and 29% profit growth.
This document analyzes The Home Depot for investment purposes. It begins with an investment thesis that Home Depot has a strong presence in North America, operates in a niche market protected from e-commerce threats, and is impacted by macroeconomic trends. It then provides an overview of the company, its growth opportunities and drivers including expanding e-commerce. It performs a valuation using DCF and multiples analyses and concludes the target price is $217.87 per share, above the current price. Risks discussed include dependence on the housing market and potential impacts of tariffs.
The document analyzes efficiency ratios for non-life insurers in 13 countries from 2007-2010. It finds that:
1) Underwriting performance improved in many markets in 2010 as expenses declined as a percentage of premium revenues, though results varied by country.
2) Claims ratios declined in most countries as premium volumes grew and fewer natural disasters occurred, improving underwriting performance.
3) Operational ratios remained relatively stable in many countries, though were higher in countries like India, the UK, and US compared to others.
- The document summarizes a presentation given by Rob Spingarn of Credit Suisse on the aviation and aerospace industry.
- Spingarn covers trends in commercial aerospace such as record backlogs of aircraft orders driven by high fuel prices and cheap financing. He also notes potential concerns like increased competition from new entrants.
- For the defense sector, Spingarn discusses continued strong cash flows and international demand, as well as growing defense spending in China which could drive further U.S. defense growth.
- The aftermarket segment is seeing opportunities from an increasing retirement of older aircraft, but also challenges from surplus parts as fleets become younger.
The document provides an overview and analysis of equity grant trends among S&P 1500 companies from 2010 to 2014. Some key findings include:
1) The percentage of companies granting performance equity increased from 51.7% in 2010 to 69.3% in 2014, while the percentage granting options declined from 75.6% to 60.7% over the same period.
2) Restricted stock became the dominant equity vehicle, with 37.9% of companies granting it exclusively in 2014 compared to 22.3% in 2010. Median restricted stock granted and outstanding both increased over 20% from 2010 to 2014.
3) Technology companies granted the most restricted stock, while industrial companies granted the least. Median options
The document summarizes the CFA Institute Research Challenge hosted by CFA Societies in Texas, Louisiana, New Mexico and Oklahoma. The local challenge will take place at the University of Texas at Dallas. Students from participating universities will research and analyze Southwest Airlines and present their investment recommendation and rationale.
This document provides an analysis of Southwest Airlines (LUV) and makes the recommendation to HOLD the stock. It summarizes LUV's business model, competitive advantages, financial performance, and valuation. While LUV previously had a cost advantage due to its low-cost point-to-point structure, the analysis finds this advantage has diminished as other carriers have adopted similar models. It also notes concerns around LUV's strained employee relations and upcoming union negotiations which could increase costs. Based on the valuation methods used, the analysis sees 8% downside for LUV's stock price.
Aligning operating models and strategic prioritiesEY
EY Wealth & Asset Management’s comparison of globally integrated and multi-boutique operating models can help firms determine what’s more important: synergy or autonomy.
This presentation provides an overview of TAT Technologies Group, a global aerospace company. It discusses TAT's products and services in thermal management and power and actuation solutions. Key facts highlighted include over 500 customers, $107M in annual revenue, and 600 employees across 5 production sites. Financial results from 2015-2018 are also summarized, showing overall revenue growth while EBITDA declined in 2018.
This document provides an overview of Deloitte, the global professional services network. Some key points:
- Deloitte operates under an independent member firm structure across 150 locations worldwide, providing audit, tax, consulting, and financial advisory services.
- In fiscal year 2010, Deloitte generated $26.6 billion in aggregate member firm revenue. The largest industry groups were financial services, technology/media/telecom, and life sciences/healthcare.
- Deloitte serves the majority of the largest companies in various industries like consumer/retail, energy/resources, financial services, and life sciences/healthcare.
- Deloitte's vision is to
Financial Assets Management Kpi And Dashboard PowerPoint Presentation SlidesSlideTeam
It has PPT slides covering wide range of topics showcasing all the core areas of your business needs. This complete deck focuses on Financial Assets Management Kpi And Dashboard Powerpoint Presentation Slides and consists of professionally designed templates with suitable graphics and appropriate content. This deck has total of twentyfive slides. Our designers have created customizable templates for your convenience. You can make the required changes in the templates like colour, text and font size. Other than this, content can be added or deleted from the slide as per the requirement. Get access to this professionally designed complete deck PPT presentation by clicking the download button below.
El perro es el primer animal domesticado y ha vivido con los humanos como compañero durante más de 14,000 años; su ancestro directo es el lobo y pertenece a la familia de los cánidos; y los antepasados de los cánidos eran unos mamíferos llamados miácidos que vivieron hace 40 millones de años.
Skyworks Solutions is a semiconductor company that produces radio frequency chips and power amplifiers used in wireless devices. The presentation argues that Skyworks is well positioned to benefit from the growth of the Internet of Things and expansion of the LTE market globally. While Skyworks derives a significant portion of its revenue from Apple, the company has been diversifying its customer base. The presentation provides an overview of Skyworks, an investment thesis, valuation analysis, and risks.
Kona Adventures is a leading provider of travel and entertainment services that maintains its market position through organic and inorganic growth. Valuation analyses place Kona's enterprise value between $560-600 million based on 2016E revenue of $206.2 million and EBITDA of $52.6 million. Comparable analyses and precedent M&A transactions support a valuation range of $552.1-604.7 million. It is recommended that Kona pursue a near-term sale to a strategic buyer given compelling financials and historically strong market conditions.
Mobileye is a technological leader in autonomous driving poised to benefit from regulations requiring automatic emergency braking by 2022. It has substantial contracts with automakers like GM and technology like EyeQ that provides effective vision-based driver assistance. The analysts recommend Mobileye as a buy with a $60 price target, a 50% upside.
This document provides an analysis of Patterson Education Group (PEG) for a case competition. It includes:
- An executive summary that outlines PEG's unique personalized high school model and strong projected growth rates.
- An industry overview of the growing K-12 education sector and education technology industry.
- An analysis of PEG's business model, growth opportunities, and financial projections. Strengths include barriers to entry and technological advantages.
- A valuation of PEG using precedent transactions, comparable company analyses, and a discounted cash flow model, resulting in an estimated valuation range of $170-300 million.
- A discussion of strategic options such as organic growth through new schools and technology expansion, or
Skywest was the largest regional airline in 2009 during an economic downturn that greatly impacted the airline industry. It faced challenges including rising costs, falling profits, and disputes with partners. While Skywest performed most maintenance internally to control costs, expenses increased as it acquired new aircraft and outsourced non-routine maintenance. Its profit margins declined between 2008 and 2009 as operating expenses grew despite higher revenues. The regional airline industry was highly competitive and cyclical, closely tied to the economy.
SkyWest, Inc. is a regional airline that operates 316 aircraft and has over 11,000 employees. It provides service to 159 destinations in North America through partnerships with major carriers like United, Delta, US Airways, and Alaska Airlines. SkyWest aims to be the airline, employer, and investment of choice by focusing on excellent customer service and expanding its geographic reach and partnerships. While it benefits from experience and sole operating routes, SkyWest faces challenges from competition and reliance on major partners. Its financial performance declined from 2007 to 2008 as margins decreased. To strengthen its position, SkyWest could pursue new partnerships, international expansion, and regulatory changes.
The document discusses a strategy for D-Motors to improve its financial performance. It recommends rebranding to target younger customers, leveraging predictive analytics to improve business insights, and flattening the corporate structure. A 5-year plan includes rolling out new technologies, expanding marketing, and achieving 49% revenue growth and 29% profit growth.
This document analyzes The Home Depot for investment purposes. It begins with an investment thesis that Home Depot has a strong presence in North America, operates in a niche market protected from e-commerce threats, and is impacted by macroeconomic trends. It then provides an overview of the company, its growth opportunities and drivers including expanding e-commerce. It performs a valuation using DCF and multiples analyses and concludes the target price is $217.87 per share, above the current price. Risks discussed include dependence on the housing market and potential impacts of tariffs.
The document analyzes efficiency ratios for non-life insurers in 13 countries from 2007-2010. It finds that:
1) Underwriting performance improved in many markets in 2010 as expenses declined as a percentage of premium revenues, though results varied by country.
2) Claims ratios declined in most countries as premium volumes grew and fewer natural disasters occurred, improving underwriting performance.
3) Operational ratios remained relatively stable in many countries, though were higher in countries like India, the UK, and US compared to others.
- The document summarizes a presentation given by Rob Spingarn of Credit Suisse on the aviation and aerospace industry.
- Spingarn covers trends in commercial aerospace such as record backlogs of aircraft orders driven by high fuel prices and cheap financing. He also notes potential concerns like increased competition from new entrants.
- For the defense sector, Spingarn discusses continued strong cash flows and international demand, as well as growing defense spending in China which could drive further U.S. defense growth.
- The aftermarket segment is seeing opportunities from an increasing retirement of older aircraft, but also challenges from surplus parts as fleets become younger.
The document provides an overview and analysis of equity grant trends among S&P 1500 companies from 2010 to 2014. Some key findings include:
1) The percentage of companies granting performance equity increased from 51.7% in 2010 to 69.3% in 2014, while the percentage granting options declined from 75.6% to 60.7% over the same period.
2) Restricted stock became the dominant equity vehicle, with 37.9% of companies granting it exclusively in 2014 compared to 22.3% in 2010. Median restricted stock granted and outstanding both increased over 20% from 2010 to 2014.
3) Technology companies granted the most restricted stock, while industrial companies granted the least. Median options
The document summarizes the CFA Institute Research Challenge hosted by CFA Societies in Texas, Louisiana, New Mexico and Oklahoma. The local challenge will take place at the University of Texas at Dallas. Students from participating universities will research and analyze Southwest Airlines and present their investment recommendation and rationale.
This document provides an analysis of Southwest Airlines (LUV) and makes the recommendation to HOLD the stock. It summarizes LUV's business model, competitive advantages, financial performance, and valuation. While LUV previously had a cost advantage due to its low-cost point-to-point structure, the analysis finds this advantage has diminished as other carriers have adopted similar models. It also notes concerns around LUV's strained employee relations and upcoming union negotiations which could increase costs. Based on the valuation methods used, the analysis sees 8% downside for LUV's stock price.
Aligning operating models and strategic prioritiesEY
EY Wealth & Asset Management’s comparison of globally integrated and multi-boutique operating models can help firms determine what’s more important: synergy or autonomy.
This presentation provides an overview of TAT Technologies Group, a global aerospace company. It discusses TAT's products and services in thermal management and power and actuation solutions. Key facts highlighted include over 500 customers, $107M in annual revenue, and 600 employees across 5 production sites. Financial results from 2015-2018 are also summarized, showing overall revenue growth while EBITDA declined in 2018.
This document provides an overview of Deloitte, the global professional services network. Some key points:
- Deloitte operates under an independent member firm structure across 150 locations worldwide, providing audit, tax, consulting, and financial advisory services.
- In fiscal year 2010, Deloitte generated $26.6 billion in aggregate member firm revenue. The largest industry groups were financial services, technology/media/telecom, and life sciences/healthcare.
- Deloitte serves the majority of the largest companies in various industries like consumer/retail, energy/resources, financial services, and life sciences/healthcare.
- Deloitte's vision is to
Financial Assets Management Kpi And Dashboard PowerPoint Presentation SlidesSlideTeam
It has PPT slides covering wide range of topics showcasing all the core areas of your business needs. This complete deck focuses on Financial Assets Management Kpi And Dashboard Powerpoint Presentation Slides and consists of professionally designed templates with suitable graphics and appropriate content. This deck has total of twentyfive slides. Our designers have created customizable templates for your convenience. You can make the required changes in the templates like colour, text and font size. Other than this, content can be added or deleted from the slide as per the requirement. Get access to this professionally designed complete deck PPT presentation by clicking the download button below.
El perro es el primer animal domesticado y ha vivido con los humanos como compañero durante más de 14,000 años; su ancestro directo es el lobo y pertenece a la familia de los cánidos; y los antepasados de los cánidos eran unos mamíferos llamados miácidos que vivieron hace 40 millones de años.
Skyworks Solutions is a semiconductor company that produces radio frequency chips and power amplifiers used in wireless devices. The presentation argues that Skyworks is well positioned to benefit from the growth of the Internet of Things and expansion of the LTE market globally. While Skyworks derives a significant portion of its revenue from Apple, the company has been diversifying its customer base. The presentation provides an overview of Skyworks, an investment thesis, valuation analysis, and risks.
Centene Corporation (CNC) is a health insurance company that provides government-sponsored healthcare programs to under-insured individuals. It is acquiring HealthNet, which will expand its Medicaid membership to 11 million across 23 states. The acquisition is expected to close in June 2016 and provide significant revenue growth and cost synergies. Centene has a diversified business model across government programs and geographies. It has achieved strong revenue and earnings growth through acquisitions and expansion into new markets. The analyst recommends buying CNC with a target price of $79.8 based on the company's steady growth prospects and undervaluation.
Gibson Energy is recommended as a Buy based on its commitment to growth through $700M in capital expenditures, ability to provide continued shareholder value through increasing dividends, and strong liquidity position to withstand depressed oil prices. Valuation analyses using comparable companies and a discounted cash flow model imply the share price is undervalued at current levels. However, risks include continued weakness in commodity prices and environmental concerns potentially limiting future growth opportunities.
Suncor Energy Inc. is an integrated energy company with over 40 years of oil sands experience in Canada and internationally. The presentation recommends a long position in Suncor, arguing it is undervalued with a price target of $43 per share based on its strong correlation with the SPTSEN energy index, strategic acquisitions, and opportunities from growing global energy demand and management's visionary leadership. Key risks include unexpected downtime, international uncertainties, and environmental issues.
Based on the analysis, WM is a well-established leader in the waste management industry with significant scale advantages over competitors. However, margins have been negatively impacted by acquisitions and rising fuel costs. Going forward, the company is focused on growth through continued M&A and investments in recycling to capitalize on industry trends toward sustainability.
Western Digital Corporation Stock Pitch Kaminski, ScudieriAnthony Scudieri
Western Digital is a manufacturer of data storage products including hard disk drives, solid state drives, and external storage devices. It has a 45% market share and focuses on R&D to develop innovative storage solutions. Key drivers for the company include the rapid growth of data creation and storage needs of businesses and consumers. Recent acquisitions in the SSD market position Western Digital competitively in that segment. Valuation analyses find the company trading at attractive multiples compared to peers, and financial ratios demonstrate strong profitability and returns.
• Created an operating model, comparable company analysis, and DCF analysis to determine valuation
• Collaborated as a team of three freshman to propose our valuation range via PowerPoint
The merger of FMC and SEBI in India is expected to strengthen regulation of the commodity derivatives market and improve its integrity. Key impacts include enhanced oversight, strengthened risk management through higher margin requirements, and improved delivery infrastructure standards for warehouses. Challenges remain around price discovery due to an underdeveloped spot market, and ensuring physical delivery of commodities. The way forward includes integrating spot and derivatives markets, improving price transparency, increasing participation of hedgers, and allowing new entities like FIIs and banks/MFs/insurers to invest.
Apollo Hospitals is India's largest healthcare group with over 9,000 beds across 64 hospitals. It has experienced strong growth over the last 6 years with revenues growing at a 18% CAGR and profits growing at a 32% CAGR. The company plans to continue expanding its hospital network in tier 1 and tier 2 cities and increase its pharmacy retail footprint to drive further growth. Apollo Hospitals is well positioned to benefit from India's underpenetrated healthcare market as demand for quality healthcare rises.
GoPro is overvalued and presents an attractive short opportunity. It has limited its market to extreme sports cameras and faces increased competition from other companies making similar lower-cost cameras. GoPro's efforts to expand into media ventures through YouTube and other partnerships are speculative and unlikely to generate enough revenue to justify GoPro's high valuation. Using reasonable forecasts, GoPro's enterprise value far exceeds what its future revenue prospects can support, indicating the stock price is likely to fall.
This document is a stock pitch presentation for Nalco (NLC). It summarizes that:
1) Nalco is a specialty chemical company providing water treatment and air quality solutions to industries. It has a large market share across its segments but is undervalued relative to peers.
2) The new CEO is focused on growth in emerging markets and new innovative products to drive multiple expansion.
3) Nalco has strong earnings power and cash flow generation despite its large debt, and analysts underestimate its upside from recurring business, new products, and cost savings.
Tesla Motors Inc is pitching an investment in the company. Major catalysts for the investment are the upcoming Gigafactory battery production facility and Tesla Model 3 vehicle. The presentation recommends a buy rating for Tesla stock with a 10-year investment horizon and a target price of $545 per share based on discounted cash flow analysis and comparable company valuations. Risks include production and demand challenges.
This Facebook pitch deck illustrates the vast potential for investors, institutional and retail alike, to capitalize on the upside of the social media giant. We dissect the impact of Facebook's latest acquisitions, current and future growth rates, the NPV of the acquisitions and what it all means for Facebook shareholders going forward.
Fushi Copperweld produces copper-clad aluminum and copper-clad steel wire products. It has manufacturing facilities in China, the US, and the UK. The company sees opportunities for growth in China's expanding telecom industry and through strategic acquisitions. While dependent on copper prices, the company's performance is expected to improve with economic recovery. Financial analysis shows the company has no debt, high margins, and the stock may be undervalued based on an APV valuation model. The presentation recommends buying the stock.
Cleveland Research Company Stock Pitch Competition Finalist PresentationNick Meyerson
Finished in the top 5 teams, presented this slideshow to a panel of equity research analysts and associates, and fielded questions about Mobileye's capital structure, its share price's sensitivity to excitement in the media, and projections including a DCF analysis, comparables analysis, and multiple sensitivity analyses.
Was one of five teams to present in front of a panel of equity research analysts and associates. Pitched Mobileye (MBLY) stock as a buy with a 12 month price target of $70.00 with a 67% upside from its current share price. As of 9/9/2016, MBLY is up 31% since our pitch.
Stock pitch of Herc Rentals, traded on the New York Stock Exchange (NYSE). Target price created through a Discounted Cash Flow (DCF) analysis with the EBITDA multiple approach.
Sources: Company Website, Company Filings, Thomson One, RBC Capital Markets, KeyBank Capital Markets, GAMCO Investors, Yahoo! Finance, Independent, PwC, Oxford Economics,
This document provides an overview and summary of Atwood Oceanics for investors attending the 20th Annual Oil & Offshore Conference. It summarizes Atwood's strategy of modernizing and expanding its fleet through newbuild rig deliveries from 2011-2015. This will provide a younger fleet of ultra-deepwater floaters and high-spec jackups. The summary also outlines Atwood's strong safety and operating performance, revenue efficiency, and focus on superior shareholder returns. Key details include $3.9 billion in contracted backlog through 2016 and funding for remaining capital expenditures of $1.4 billion through operating cash flows and credit facilities.
Vaquero Capital, a boutique investment banking firm based in San Francisco, has extensive experience in the Energy technology vertical space. We recently pulled together an overview of the energy tech market for a major strategic investor, attached here.
Credit Suisse, 19th Annual Summit Energy Conference
February 13, 2014
Rob Saltiel
President and CEO
Atwood Oceanics, Inc.
Atwood Oceanics, Inc. is a global offshore drilling contractor engaged in the drilling and completion of exploratory and developmental oil and gas wells. The company currently owns 13 mobile offshore drilling units and is constructing three ultra-deepwater drillships. The company was founded in 1968 and is headquartered in Houston, Texas. Atwood Oceanics, Inc. common stock is traded on the New York Stock Exchange under the symbol "ATW."
Alan Duncan's All Energy 2017 Offshore wind: the importance of the supply chainBVG Associates
This is Alan Duncan's presentation delivered at All-Energy 2017 outlining the importance of the supply chain in offshore wind industry and the role for oil and gas companies
Delta Airlines pitch document outlines the investment rationale for investing in Delta. It summarizes that Delta will benefit from increasing disposable income and air travel demand. Lower oil prices also reduce Delta's fuel costs. The document values Delta using comparable company analysis and a discounted cash flow valuation model. It sets a target price of $65.10 per share based on the models, representing a total implied return of 33.10% from the current stock price.
This document provides an analysis of Navios Maritime Acquisition Corporation (NNA) by Sagehen Capital Management. It begins with an executive summary that outlines the investment thesis, the shipping industry, information about NNA, a valuation analysis, risks, and questions. The investment thesis is that tankers are in the early stages of a recovery, NNA is well-positioned to capitalize on opportunities, and NNA is undervalued. The document then provides details on the shipping industry environment, NNA's operations and competitive advantages, and financial analyses valuing NNA at $6.79 per share.
Maersk Oil delivered solid financial results in 2013 and is on track to achieve its growth targets. Production grew from 226,000 boepd in 2013 to an estimated 235,000 boepd in 2014. Maersk Oil aims to further grow production to 400,000 boepd by 2020 through its portfolio of projects, which is expected to maintain a double digit return on invested capital. Major projects that will contribute to near-term production growth include Tyra Southeast in Denmark, which is scheduled to start production in late 2014 or early 2015.
This document is an analysis of WestJet Airlines (WJA) that recommends the stock as a buy. It discusses WJA transitioning from a growth company to a GARP (growth at a reasonable price) style as growth rates decline. Free cash flow generation allows WJA to introduce dividends, attracting yield investors. Financial forecasts show rising revenues and profits with declining debt. This supports growing dividends while maintaining strong leverage ratios. A valuation sets a 2011 target price of $17.51, representing 14.4% upside including dividends.
Post Recession Offshore - Oil & Gas IndustryAftab Hasan
This document provides an overview and outlook of the global offshore oil and gas industry following the economic recession. It discusses factors influencing the offshore market such as increasing global energy consumption and the cyclic nature of oil prices. The financial implications for the offshore industry are also examined, noting growing investment in deepwater and horizontal drilling while fleet utilization does not yet require additional rigs. The outlook for offshore energy vessels is cautiously optimistic, with demand for rigs and support vessels increasing but the market remaining cautious about new builds. The conclusion is that as onshore reserves deplete, offshore exploration and production will extend into new basins, creating opportunities for industry growth.
Welcome to the latest edition of our Weekly Engineering Market Research Update – Edition 501. This document aims to provide a comprehensive overview of the current trends, developments, and opportunities in the engineering industry. Our team of expert analysts has gathered valuable data and insights to keep you informed and empower you to make well-informed decisions in this rapidly evolving market.
Market Trends:
China’s dominance as an economic powerhouse continues to be reinforced by the slide in commodity prices as a result of slower than expected economic advancements still as a result of the post covid pandemic world.
In the past week, several noteworthy trends have emerged in the engineering sector. One significant trend is the increasing adoption of sustainable engineering practices. As environmental concerns continue to grow, companies are prioritizing eco-friendly solutions, such as renewable energy projects, green infrastructure, and circular economy initiatives. This presents an array of opportunities for businesses specializing in sustainable engineering services and products.
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The DCF model reveals the intrinsic value of the corporation is higher than the market capitalization. The fair price range for the stock is estimated to be $119-127, representing 12-19% upside potential. The stock is currently trading around 105$
Atwood Oceanics, Inc. is a global offshore drilling contractor engaged in the drilling and completion of exploratory and developmental oil and gas wells. The company currently owns 13 mobile offshore drilling units and is constructing three ultra-deepwater drillships. The company was founded in 1968 and is headquartered in Houston, Texas. Atwood Oceanics, Inc. common stock is traded on the New York Stock Exchange under the symbol "ATW."
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3. 3Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
InvestmentThesis
Atwood is currently positioned with premium asset exposure in the ultra deepwater
sector of an industry that is trending downward
Atwood Oceanics currently owns one of the most technologically superior fleets in the industry
They boast unsurpassed profit margins and top tier return on capital
Continued organic EPS growth will drive the share price upwards
We recommendAtwood as a Buy with a 12 month price target of $63.00, which
represents an upside of 36.6% from the current share price of $46.13
4. 4Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Business Overview
Headquartered in Houston,Texas
Traded on the NYSE:ATW
Operations in 10 countries
83% of contracts are through foreign countries
Contract oil rigs to exploration and
production companies
Description & Operations 52-WeekTrading Range
Revenue by CustomerKey Statistics
Market Data Capital Structure
Current Price $46.13 Net Debt $1,563.6M
Market Cap $2962M Cash $132.5M
P/E Ratio 8.39x Current Ratio 2.9x
Price/Book 1.29x Quick Ratio 1.8x
Operations Value
TTM Revenue $1,103M EV/Revenue 4.0x
Profit Margin 34.00% EV/EBITDA 7.8x
Diluted EPS $5.50 EV/Cash Flow 10.0x
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg
19%
15%
15%14%
37% Chevron
Apache Energy
Hess Corporation
Noble Energy
Other
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
0
10
20
30
40
50
60
70
4/10/2013 7/10/2013 10/10/2013 1/10/2014
Millions
StockPrice
5. 5Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Industry Overview
Perceived over-supply of rigs in the offshore
drilling industry
Pressure on day rates is causing pessimistic
outlook on EPS for the next 12-18 months
Macroeconomic Situation Indexed 2014 EPS Revisions
Industry Revenue BreakdownSwingTowards Ultra Deepwater
38%
19%
12%
6%
21%
4%
Transocean
Ensco
Diamond Offshore
Rowan Companies
Seadrill
Atwood Oceanics
0.65
0.70
0.75
0.80
0.85
0.90
0.95
1.00
1.05
ATW
RIG
ESV
DO
RDC
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg, Barrons
8%
7%
85%
Newbuild
34%
54%
12%
Operating
Less than 4500 4500-7500 Greater than 7500
Water depth (ft.)
6. 6Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Industry Rig Breakdown
Ultra Deepwater Drillships
Self-Propelled, large amounts of supplies
Semisubmersible Rigs
Can operate in more severe sea conditions
Jack-up Rigs
Supported by three legs and drill in shallow water
Types of Rigs Percentage of Drillships with Dual BOP
Average Day Rate by RigTypeAge of Contracted Jack-up Fleet
0
100
200
300
400
500
600
700
Ultra-Deepwater
Drillships
Semisubmersible
Rigs
Jackup Drilling
Rigs
(inthousands)
Industry Average Day Rate
Atwood Average Day Rate
Sources: Atwood 10k, RigZone
0
50
100
150
200
250
2013 2014E 2015E 2020E
NumberofRigs
40 years or more 35 years or more 30 years or more
0%
20%
40%
60%
80%
100%
ATW RDC DO NE RIG ESV SDRL
7. 7Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Effects of Oil
A large portion of revenue has already been
locked in over the next three years
95% for remaining fiscal 2014
72% for fiscal 2015
43% for fiscal 2016
Contract Status Atwood vs. Markets
IEA’s Oil Scenarios
60
70
80
90
100
110
120
130
140
150
160
2008 2009 2010 2011 2012 2013IndexedReturn
Atwood Oceanics
NYSE/AMEX/NASDAQ Stock Markets
Atwood-Determined Peer Group
Brent Oil
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg, IEA projections
$0
$20
$40
$60
$80
$100
$120
$140
$160
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
Brentpriceperbarrel
Current Policies Scenario New Policies 450 Scenario Historical
8. 8Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
“A-Class”Additions
RevenueWeightedAge of Fleet
Project Status
Specification
"A-Class"
Drillship
Typical 5th Gen
Drillship
MaxWater Depth (Ft) 12,000 10,000
Max Drilling Depth (Ft) 40,000 35,000
Variable Deckload (mt) 23,000 20,000
Dual 15K BOP Yes No
BOP Rams 7 6
Hookload (Lbs) 2,500,000 2,000,000
Mud Pumps 5 4
Cranes 3 x 100 mt 3 x 85 mt
Compensating Crane Yes - 165 mt No
Active Heave with Crown-
Mounted Compensator
Yes No
0
10
20
30
2010 2011 2012 2013 2014 2015
FleetAge(years)
ATW DO RIG NE ESV
The Benefits
Atwood’s recent cash flow has gone toward
the production of four “A-Class” ships
The Atwood Advantage was completed in
November 2013 and is currently mobilizing to the
Gulf of Mexico
The Atwood Achiever will be completed in June
2014 when it will pick up contract off the coast of
Morocco
The Atwood Admiral and Atwood Archer are
slated to be completed in March and December 2015,
respectively
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k
9. 9Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
MarginAnalysis
Atwood has numerous clauses in contracts
that protect against margin erosion
Currency stability
Margin preservation
Built-in CPI growth
Forms of Day Rates
CAGR Projections for 2012-2020Variable Contracts
Three main types of day rates
Full-operating rate
Moving rate
Weather rate/repair rate
0%
10%
20%
30%
40%
ATW ESV SDRL DO NE RDC RIG
Sources: Management Conference Call, Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Rystad Energy Consulting
2013 Profit Margin
0%
4%
8%
12%
16%
20%
Offshore Ultra
Deepwater
On Shore Offshore Shelf Offshore Deepwater
10. 10Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Margin Expansion Opportunities
Higher day rates
Accompanied by similar costs
Atwood’s class “A” drillships have already
begun to hit the market, propelling margins
higher
Newer Fleet Benefits
2015 Projected Revenue Breakdown2013 Revenue Breakdown
54%
29%
17%
Ultra Deepwater
Floaters
High Spec Jackups
Other
32%
25%
43%
Ultra Deepwater
Floaters
High Spec Jackups
Other
Sources: Management Conference Call, Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Rystad Energy
Discovered Resources
0
20
40
60
80
100
120
140
1980 1985 1990 1995 2000 2005 2013
(inbillionsofboe)
Shelf Deepwater Ultra Deepwater
11. 11Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Revenue Backlog
Ultra Deepwater revenue backlog will
continue to drive margin expansion
TheAtwoodAdvantage andAtwoodAchiever will
fulfill most of the current backlog
TheAtwoodArcher andAtwoodAdmiral will
continue to drive revenue past 2016
Atwood’s contracts moving forward are
with a variety of customers, providing an
additional layer of safety
Margin Benefits Backlog by RigType
Backlog by CustomerTypeRevenue Diversification
0
200
400
600
800
1000
2014 2015 2016
RevenueBacklog(m)
Ultra-deepwater
Deepwater
Jackups
37%
34%
29%
Majors/Large NOCs
Large Independents
Small Independents
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg
12. 12Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Management
Organic growth driven by internal
investment in high end drill ships
High returns on internal investment justify
Atwood’s retention of capital
Very centralized and consistent business
dealings
Common parts and systems across ships
“Lessons are learned once and passed across
the crew and fleet”
Organic Growth Opportunities Return on Capital
Utilization Rate of In-Service RigsManagement Efficiency
0%
4%
8%
12%
16%
20%
RDC RIG ESV NE ATW SDRL DO
2014
2015
75%
80%
85%
90%
95%
100%
2009 2010 2011 2012 2013
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg
13. 13Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Earnings Overview
Strong internal investment in new fleet is
driving top line growth
Slight margin expansion will also contribute
to EPS growth
There is a perceived over supply of rigs
New round of upgrades to jack-up market
Negative sentiment on the overall industry
A softening of day rates is projected
Drivers Historical and Projected EPS
Consensus vs.Actual EarningsReason for Analyst Pessimism
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg
0%
10%
20%
30%
40%
50%
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
EPSYOYGrowth
EPS
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
$1.80
Q4 -
2012
Q1 -
2013
Q2 -
2013
Q3 -
2013
Q4 -
2013
Q1 -
2014
EPS
Estimate
Reported
14. 14Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Financing and Capex Analysis
Atwood has all of its new-build capex
covered with locked in future cash flow
These figures come from only 72% and
43% of the fleet being contracted for 2015
and 2016, respectively
Management expects to refinance a $605
million note due in May 2020
Plan to convert a portion of the revolving
credit facility to long term debt
Seek to maintain around 30% debt to
capital to keepWACC low
Capital Expenditure Coverage Financing of Capital Expenditures
Key MetricsNatural Deleveraging
$405
$707
$581
$85
$490 $520 $525
0
100
200
300
400
500
600
700
800
2014 2015 2016
(inmillions)
Contracted Operating Cash Flow Debt Capex
Sources: Management Conference Call, Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg
Debt to Capital Debt to EBITDA
2013 42% 3.1x
2016E 29% 1.5x
15. 15Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
SWOTAnalysis
Strong Margins
Future deleveraging
Strong contracts with hedging for costs and
currency fluctuation
New cutting edge fleet
Explosive growth in the Gulf of Mexico
Strong market demand for new, high spec
rigs
Discovery of new oil fields in ultra
deepwater locations
Financing of Capital Expenditures
Key MetricsNatural Deleveraging
Increased competition in the offshore
market
Stagnation of Brent market
Increased rig supply
Uncontrollable weather events
Governmental regulation
Sources: Management Conference Call, Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg
Taking two ships out of cold stacked storage
would be expensive ($50-100 million each)
Not a strong history of cashflows
WeaknessesStrengths
Opportunities Threats
16. 16Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Valuation
Public comparables does not give a
completely accurate valuation
Atwood has been grouped in with a softening
industry
EV/EBITDA ratios vary significantly, leading to
wide valuation range
ComparablesAnalysis Football Field
Segmented DCF Sensitivity AnalysisSegmented DCF vs. DCF
Implied Share Price Sensitivity
WACC
64.97 8.0% 8.3% 8.6% 8.9% 9.2%
4.0% $87.04 $80.82 $75.26 $70.28 $65.79
2.0% $81.36 $75.42 $70.12 $65.36 $61.07
Day Rate Step 0.0% $75.68 $70.02 $64.97 $60.44 $56.35
(3.0%) $67.16 $61.93 $57.25 $53.06 $49.27
(6.0%) $58.65 $53.83 $49.53 $45.67 $42.19
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg
Segmented DCF was done by breaking
down revenue projections by each oil rig
Used contracted day rates and operating margins
to project revenue
$35.00 $45.00 $55.00 $65.00 $75.00
DCF
Segmented DCF
Comparables
17. 17Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Valuation
Segmented DCFValuation Calculation ofWACC
ComparablesValuationDCFValuation
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg
Debt
Cost of Debt 6.5%
Equity
Cost of Equity 10.2%
Beta 1.40
Risk-Free Rate 2.9%
Return on Market 10.0%
Weighted Average Cost of Capital
Market Value of Equity 3,263.9
Market Value of Debt 1,691.2
Total 4,955.1
Tax Rate 14.0%
WACC 8.64%
PPG Method at 2.75%
Terminal Value 8,273.6
Implied TV EBITDA Multiple 6.6x
Present Value
PV of Free Cash Flows 424.0
PV of Terminal Value 5,468.1
Implied Enterprise Value 5,892.1
Net Debt 1,563.6
Equity Value 4,328.4
Shares Outstanding 64.1
Implied Price per Share 67.53
Implied Premium to Current Price 46.4%
PPG Method at 2.75%
Terminal Value 7,297.7
Implied TV EBITDA Multiple 6.4x
Present Value
PV of Free Cash Flows 599.2
PV of Terminal Value 5,239.6
Implied Enterprise Value 5,838.8
Net Debt 1,563.6
Equity Value 4,275.1
Shares Outstanding 65.8
Implied Price per Share 64.97
Implied Premium to Current Price 40.8%
Implied Valuation
EV/EBITDA
1st Quartile Median Mean 3rd Quartile
Implied Share Price $38.74 $52.02 $52.84 $65.83
Upside (16.0%) 12.8% 14.5% 42.7%
18. 18Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
FinalThoughts
Atwood Oceanics currently owns the most technologically superior fleet in the industry
The “A-Class” drillship,AtwoodAdvantage, is deploying to the Gulf of Mexico
TheAtwoodAchiever is scheduled for deployment in June 2014
TheAtwoodArcher andAtwoodAdmiral will come online in 2015
Within the industry,Atwood boasts unsurpassed profit margins and top tier return on capital
Ultra deepwater drillships will drive margin expansion
Strong internal investment and management efficiency
Continued organic EPS growth will help drive the share price upwards
New drillships will drive top-line growth while keeping margins high
Atwood’s locked in day rates are industry-leading
We recommendAtwood as a Buy with a 12 month price target of $63.00, which
represents an upside of 36.6%
20. 20Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
AppendixTable of Contents
Pro Forma Income Statement
Pro Forma Balance Sheet
Pro Forma Statement of Cash Flows
Segmented DCF Revenue Projections
Comparable CompaniesAnalysis
Fleet Location
Contract Overlook
Competitors 1
Competitors 2
21. 21Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Back
Pro Forma Income Statement
Income Statement Historical Projections
2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E
Total Revenue 586.5 650.6 645.1 787.4 1,063.7 1,255.2 1,518.8 1,792.1 2,060.9 2,308.3
Contract Drilling 586.5 650.6 637.2 756.0 1,017.9 1,201.1 1,453.4 1,715.0 1,972.2 2,208.9
Revenues related to reimbursable expenses 0.0 0.0 7.9 31.4 45.8 54.0 65.4 77.2 88.7 99.4
Operating Costs and Expenses
Contract Drilling 221.7 252.4 218.8 328.5 426.2 480.4 566.8 668.8 769.2 861.5
Depreciation 35.1 37.1 43.6 70.6 117.5 143.4 163.9 184.5 208.3 235.4
Reimbursable expenses 0.0 0.0 4.7 18.7 32.7 33.5 40.5 47.8 55.0 61.6
General and administrative 31.6 40.7 44.4 49.8 56.8 74.1 86.6 98.6 109.2 117.7
Other, net (0.4) (1.9) 4.9 0.4 1.0 2.5 3.0 3.6 4.1 4.6
Total Operating Costs and Expenses 288.0 328.3 316.4 468.0 634.2 733.9 860.9 1,003.3 1,145.8 1,280.8
Operating Income 298.5 322.3 328.7 319.4 429.5 521.3 657.9 788.8 915.1 1,027.4
Interest Expense 2.3 2.7 4.5 6.5 24.9 84.2 70.7 57.2 43.8 61.4
Foreign Exchange Losses (Gains) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net Non-Operating Losses (Gains) (0.7) (0.4) (0.7) (0.4) (0.2) (0.1) (0.1) (0.1) (0.1) (0.1)
Pretax Income 296.4 320.0 324.8 313.3 404.8 437.2 587.3 731.7 871.5 966.1
Income Tax Expense 45.7 63.0 53.2 41.1 54.6 61.2 82.2 102.4 122.0 135.3
Income Before XO Items 250.7 257.0 271.7 272.2 350.2 376.0 505.1 629.2 749.5 830.8
Extraordinary Loss Net of Tax 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Minority Interests 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net Income
Net Income 250.7 257.0 271.7 272.2 350.2 376.0 505.1 629.2 749.5 830.8
Abnormal Losses (Gains) (0.4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Tax Effect on Abnormal Items 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Normalized Income 250.5 257.0 271.7 272.2 350.2 376.0 505.1 629.2 749.5 830.8
Basic EPS Before Abnormal Items 3.90 3.99 4.20 4.17 5.38 5.87 7.88 9.82 11.69 12.96
Basic EPS Before XO Items 3.91 3.99 4.20 4.17 5.38 5.87 7.88 9.82 11.69 12.96
Basic EPS 3.91 3.99 4.20 4.17 5.38 5.87 7.88 9.82 11.69 12.96
Basic Weighted Average Shares 64.17 64.39 64.75 65.27 65.07 64.10 64.10 64.10 64.10 64.10
Diluted EPS Before Abnormal Items 3.89 3.95 4.15 4.14 5.32 5.78 7.77 9.68 11.53 12.78
Diluted EPS Before XO Items 3.89 3.95 4.15 4.14 5.32 5.78 7.77 9.68 11.53 12.78
Diluted EPS 3.89 3.95 4.15 4.14 5.32 5.78 7.77 9.68 11.53 12.78
Diluted Weighted Average Shares 64.49 65.03 65.40 65.78 65.85 65.00 65.00 65.00 65.00 65.00
Dividends Declared per Share 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EBITDA 33.2 359.4 372.3 390.0 547.0 664.6 821.8 973.3 1123.4 1262.8
Assumptions
Revenue - 10.9% (0.8%) 22.1% 35.1% 18.00% 21.00% 18.00% 15.00% 12.00%
Contract Drilling Expense as a % of Contract Revenue 37.8% 38.8% 34.3% 43.5% 41.9% 40.00% 39.00% 39.00% 39.00% 39.00%
Reimbursable Expense as a % of Reimbursable Revenue - - 59.5% 59.6% 71.4% 62.00% 62.00% 62.00% 62.00% 62.00%
General and administrative as a % of Total Revenue 5.4% 6.3% 6.9% 6.3% 5.3% 5.90% 5.70% 5.50% 5.30% 5.10%
Other Expenses as a % of Total Revenue (0.1%) (0.3%) 0.8% 0.1% 0.1% 0.20% 0.20% 0.20% 0.20% 0.20%
Interest Expense Rate 0.8% 1.2% 0.9% 0.8% 2.0% 5.00% 4.20% 3.40% 2.60% 3.65%
Tax Rate 15.4% 19.7% 16.4% 13.1% 13.5% 14.00% 14.00% 14.00% 14.00% 14.00%
27. 27Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Back
Contract Overlook
Rig Class/Rig Customer
2014 2015 2016
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Ultra Deepwater Drillships
Atwood Advantage Noble Energy
Atwood Achiever Kosmos Energy
Atwood Admiral Available
Atwood Archer Available
Ultra Deepwater Semisubs
Atwood Osprey Chevron
Atwood Condor Shell
Deepwater Semisubs
Atwood Eagle Apache / Woodside
Atwood Falcon Apache / Murphy Oil
Atwood Hunter GEPetrol
Jack-Ups
Atwood Aurora Glencore / Addax
Atwood Beacon ENI
Atwood Mako Salamander
Atwood Manta CEC International
Atwood Orca Mubadala Petroleum
$584K
June Delivery $595K
Delivery early 2015
Delivery late 2015
$490K $470K
$385K $460K
$385K $499K
$515K
$155K $158K
$175K
$155K
$160K
$160K
$463K
$409K
$555K
Contracted (current) Contracted (follow on work) Shipyard Mobilization
Sources: Atwood Oceanics Howard Weil Presentation
28. 28Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Back
Competitors
Current Fleet – 91 Rigs
10% of fleet will be 6th gen ultra deepwater
drillships by late-2017
Aging Fleet
Lawsuits in Europe andAmerica
Transocean Ensco
Rig BreakdownUncommitted Fleet Rate
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
2014 2015 2016
High-Specification Floater Midwater Floaters High-Specification Jackups
Current Fleet – 74 Rigs
12% of fleet will be 6th generation ultra
deepwater drillships by late-2016
Rig Utilization rates have been south of
90% since 2009
13%
26%
61%
Drillships
Semisubmersibles
Jackups
Sources: Transocean 10-k, Howard Weil Presentation, Ensco 10-k
29. 29Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Back
Competitors
Current Fleet – 70 Rigs
16% of fleet will be 6th gen ultra deepwater
drillships by late-2015
Pays a 11% dividend
94.8% Debt/Mkt. Cap
Seadrill Rowan
Utilization RateDividends vs. Net Income
Current Fleet – 34 Rigs
12% of fleet will be 6th gen ultra deepwater
drillships by late-2015
Investing heavily in jack-up market
66.0%
77.0%
81.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
2011 2012 2013
$0
$500
$1,000
$1,500
$2,000
2011 2012 2013
(inmillions)
Dividend Net Income
Sources: Seadrill 10-k, Howard Weil Presentation, Rowan 10-k