Firm Analysis Report
– Tips
Firm Analysis Report
Part A: Company Selection
Select a publicly traded company listed in Australia or in the
U.S.
The company has outstanding bonds, as well as shares.
The firm’s shares have been paying dividends for at least 5
years.
To find out whether a company that you are interested in has bonds
outstanding, type the name of your company in the search bar on
investing.com, and a dropdown menu will appear showing all outstanding
securities of this firm (there should be equity as well as bonds).
To find out whether a company that you are interested in has been paying
dividends, select the stock of your company on Yahoo Finance, and go to
Historical Data, and select Show: Dividends Only. (Hint: dividend paying
firms with bonds outstanding are often mature, well-established firms.)
Firm Analysis Report
Part B: Company Financials
What do other financial analysts write about your company?
Reputable business publications:
Bloomberg, the Economist, etc..
Newspapers: Australian Financial Review, Financial Times,
NYT, Guardian, etc…
You can find the company’s financial statements for example
on investing.com (select your company, and click on
Financials).
Choose Annual financial
statements
Relevant financial information
on your company:
Have Revenues been
increasing or decreasing in
recent years?
Have Total Assets been
increasing or decreasing in
recent years?
….?
Firm Analysis Report
Part C: Bond Analysis
Compute the credit spread of a bond, by comparing the ytm on the bond
with the yield on Treasury Bonds with a similar maturity.
To find information on current AUS treasury yields, go to the RBA
website and find “Capital Market Yields – Government Bonds – Monthly”
Firm Analysis Report
Part C: Bond Analysis
To find information on current US treasury yields, go to Yahoo Finance,
and type “treasury yield”).
Firm Analysis Report
Part C: Bond Analysis
investing.com provides bond price data until 2020 only (for bonds issued US
companies). An alternative data source
is https://www.finra.org/finra-data/fixed-income
To obtain bond price data from the FINRA website, please follow these
steps:
On investing.com, identify the CUSIP code of the bond you are
analysing. For example, the CUSIP code for the bond “Nike Inc NKE
2.375% 01-Nov-2026 (654106AF0=)” is 654106AF0.
Visit the FINRA website mentioned above and use the Fixed Income
Security Lookup function.
Enter the CUSIP code of the bond in the provided field and initiate the
search.
Firm Analysis Report
Part D: Equity analysis
Share price chart is provided on Yahoo Finance or Investing.com
Firm Analysis Report
Part D: Share Analysis
If your company paid dividends more often than once a year, sum up all
dividends to find the total yearly dividend.
Firm Analysis Report
Part D: Share Analysis
Calculate the average dividend growth rate in the previous five years
Any thought on the pandemic?
If you would have to estimate by what rate the dividends of the company will
grow on average in the future, what would be your estimate?
Structuring a Report
See the Reports checklist for the requirements of a
high-quality report.
Make sure that in each part of your assignment you clearly
explain the methods used, show your calculations, and
comment on the results of your analysis. Explanations of
workings and comments on
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