On your first job assignment as an equity analyst, you need to analyze one of three companies: Chipotle Mexican Grill (CMG), Tesla (TSLA), or Facebook (FB).
Please complete the following tasks:
1. Download the annual income statements, balance sheets, and cash flow statements for the last 4 fiscal years from your company from either: SEC Website, Annual reports, Google Finance or other site. Enter the company's stock symbol and then go to "financials". Copy and paste the financial statements into Excel. You can also use a subscription software, such as CapitalIQ, and utilize the Excel plug-in.
2. Find historical stock prices for the firm (Google and Yahoo! Finance are a couple of sites that have this information). Enter the stock symbol, click on "historical prices" in the left column, and enter the proper date range to cover the last day of the month corresponding to the date of each financial statement. Use the closing stock prices (not the adjusted close). To calculate the firm's market capitalization at each year-end date (a total of 4 days total, for each of the 4 years), multiply the number of shares outstanding by the firm’s historic stock price.
3. For each for the 4 years of statements, compute the following ratios for each firm:
Valuation Ratios
Price-earnings ratio (for EPS use diluted EPS total)
Profitability Ratios
Operating margin (Use operating income after depreciation)
Net profit margin
Return on equity
Financial Strength Ratios
Current ratio
Debt-equity ratio
4. Obtain industry averages for your respective firm from Zack’s stock screener (https://www.zacks.com/screening/stock-screener) or other site. Compare the firm's ratios to the available industry ratios for the most recent year. Comment on each firm's valuation compared to its industry.
5. Analyze the performance (from profitability ratios) of your firm versus its industry and comment on any trends in each individual firm's performance. A few sentence is adequate.
6. Identify any/all strengths or weakness, including qualitative factors, which you find in your firm. A few sentences (1 paragraph) is adequate.
Points breakdown (20 points)
#1: 4
#2: 3
#3: 6
#4: 3
#5: 2
#6: 2