Assignment -
Select any one of the following companies and prepare an analysis of the firm's financial position taking account of the following guidelines:
Choose any of the following companies: JB Hunt Transport.
Outline:
- A maximum of five (5) pages
- Double spaced
- The cover page should have the list of all members of the group
- Any evidence of plagiarized material in your report will result in an automatic 'F'.
- Attach all referenced materials (e.g. internet web site and newspaper references)
- Neatness and clarity will be rewarded
Content:
- Introduction and Background information of the firm. Talk about the nature of its business or primary product, its competitive positioning both locally and internationally.
- Briefly discuss any MAJOR recent moves by the firm.
- Prepare a brief SWOT Analysis for the firm.
- List and Graph the stock price of the firm from January 16, 2018 to April 18th 2018. Note and explain significant changes in price from one day to the next. Note and briefly discuss any specific event that you believe may have caused those changes.
On the cover page of the report provide the following.
i. Top right corner list the following: Ticker symbol of the firm, exchange/s where stock is traded & YTD of the exchange, primary (& secondary if necessary) industry of the firm, current price of the stock and your targeted or expected stock price, A compressed graph of the YEAR TO DATE RETURN (YTD) of the stock relative to the S&P 500, the name of CEO and year of appointment.
ii. Name of the firm and members of the group and which aspect of the project they analyzed or were responsible for(in the bottom left corner of the front page)
Ratio Analysis; For each of the firms, obtain the following ratios for each of the last five (5) years, compare to industry average and use them in your analysis;
1. Profitability Ratios
a) Profit Margin On Sales
b) ROA
c) ROE
2. Debt Management:
a. Debt Ratio
b. Times Interest Earned (TIE)
3. Market Value:
a. P/E Ratio
b. Price/Book
c. PE/G Ratio
d. Enterprise Value/EDITDA
e. Enterprise Value/Sales
4. Asset Management
a. Total Asset Turnover (TATO)
b. Inventory Turnover Ratio
c. Days Sales Outstanding
5. Use at least two of the equity valuation models to forecast the expected price of the stock. This will be used to reinforce your investment decision below.
1) Constant growth model
2) Sustainable growth rate
a. Discussion and Analysis: Discuss how the firms are doing compared to the industry with specific reference to a notable firm in that particular industry (e.g. Dream works and Pixar). In the final analysis and discussions, answer whether you will own or short this stock and why (very important).
Please make sure the company is JB Hunt Transport. For the last part, please show all the calculations. Very important.