1 / 21

Leiyi Huang (Sally) Siyang Zhang Hui Li Qun Yu (Jett)

Leiyi Huang (Sally) Siyang Zhang Hui Li Qun Yu (Jett). April 22 nd , 2014. Agenda. Introduction Company Overview Macro Review Financial Ratio Analysis DCF V aluation Comparable Comps V aluation Recommendation. Introduction. Founded in 1987 Employee: 2500 + 7000

lana
Télécharger la présentation

Leiyi Huang (Sally) Siyang Zhang Hui Li Qun Yu (Jett)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Leiyi Huang (Sally) Siyang Zhang Hui Li Qun Yu (Jett) April 22nd, 2014

  2. Agenda • Introduction • Company Overview • Macro Review • Financial Ratio Analysis • DCF Valuation • Comparable Comps Valuation • Recommendation

  3. Introduction Founded in 1987 • Employee: 2500 + 7000 • Public traded since 1997 (NASDAQ: SLGN) • 52wk Range: $43.77 – $50.79 • P/E: 17.52 • Market Cap: 3.19 billion • Price @2014/04/21: $50.28

  4. Business Segments margin 8%

  5. Company Overview

  6. Macroeconomic Review • Raw material • Demand from canned fruit and vegetable processing • Global economic condition

  7. Industry Overview • Life cycle: • Decline, Mature, Mature • Industry consolidation • Flat profitability • Metal container: value-added features • Closure: variety • Plastic container: custom design

  8. Porter’s Five Forces

  9. Stock Performance @source from Yahoo.Finance

  10. Greenblatt Ratios Vertical Horizontal

  11. Profitability Analysis

  12. DebtSituations • Raisedebtforacquisitionsandsharebuyback • Concernsaboutthequality of acquisitions: • Quality of Assets • DeclinedEBITMargin • Accrualsratioimproved

  13. Financial Analysis – Discount Rate • Rated BB+ on bonds • BB+ Average Yields are currently very low • High Leverage • Cyclical

  14. Financial Analysis - DCF

  15. Financial Analysis - DCF

  16. Comparable Companies

  17. Comparable Company Analysis Source: Bloomberg

  18. Comparable Company Analysis

  19. Recommendation Current Price: $50.28

  20. Recommendation • Debt management • Acquisition activities • Investment in R&D • Operating efficiency Watch List

More Related