Professional Documents
Culture Documents
Points of Analysis
Company Overview
Profitability
Capital Structure
Liquidity
Cash-flow
Future prospects
Recommendation
Company overview
Profitability
Capital Structure
Liquidity
Cash flow
Future prospects
Recommendations
Industry
Myer
David Jones
Company overview
Profitability
Capital Structure
Liquidity
Cash flow
Future prospects
Recommendations
Financial Analysis
Dupont Analysis
Dupont analysis
Company overview
Profitability
Capital Structure
Liquidity
Cash flow
Future prospects
Recommendations
Sources: Own analysis, Finanalysis
Financial Analysis
Growth
Dupont analysis
Growth rates for David Jones as being around 3-5 % from 2013 to 2014
David Jones has significantly outgrown Myer in the last two years
The Like for like measure is very important to the retail industry as a
measure of growth in sales.
2012 and 2013 Myers had achieved superior growth than David Jones
2014, 2015 David Jones growth rate continues to grow at a rate of 3.7%
Company overview
Profitability
2,40%
0,40%
2012
2013
-2%
-1,80%
1,1%
1,20%
2014
2015
-4,80%
Capital Structure
3,70%
Liquidity
Cash flow
Future prospects
Recommendations
Sources: Own analysis, Finanalysis, ASX announcements, Inside retail Australia, Company annual reports
20%
Unsatisfied shareholders
Return on Equity
Return on Assets
15%
16%
15%
14%
1,50
1,48
1,46
1,44
1,42
1,40
1,38
10%
11%
5%
10%
3%
5%
0%
2012
0%
2012
2013
2014
2013
ROA (%)
2015
2014
10,0%
8,0%
6,0%
4,0%
2,0%
0,0%
ATO
7,9%
5,8%
2012
2013
3,0
2,0
1,5
7,6
7,5
7,4
7,3
7,2
1,0
7,1
0,5
7,0
0,0
Profitability
Capital Structure
Liquidity
Cash flow
Fixed Asset
Turnover (Y1)
Days receiveable
outstanding (Y1)
Inventory
Turnover (Y2)
6,9
2012
Company overview
2015
7,7
2,5
operating performance
2014
4,8%
2015
OPM (%)
8,4%
2013
2014
Future prospects
2015
Recommendations
Sources: Own analysis, Finanalysis
18,1%
16,0%
1,1%
3,0%
5,1%
3,0%
5,3%
2,7%
5,9%
2,1%
16,7%
14,7%
17,4%
16,1%
109
Rev.
107
COGS
105
Staff
103
S&G cost
101
50,0%
Admin cost.
99
40,0%
30,0%
2015
111
24,8%
22,6%
57,9%
97
60,7%
95
53,7%
53,2%
2012
20,0%
10,0%
0,0%
Industry DJS - 2012
Myer 2012
Myer 2015
COGS
Employee expenses
S&A expenses
Depreciation
2013
2014
2015
7,0%
6,0%
5,0%
4,0%
3,0%
2,0%
1,0%
0,0%
5,9%
1,1%
Profit
Company overview
113
Index
100,0%
Profitability
Capital Structure
Liquidity
Cash flow
Future prospects
Recommendations
Debt ratio
1,40
0,80
1,20
Capital Structure
1,16
1,19
Ratio
0,60
0,60
2014
2015
0,55
0,40
0,20
2012
Profitability
1,14
1,00
Company overview
1,19
2013
Liquidity
Cash flow
Future prospects
Recommendations
Sources Own analysis, Finanalysis
Liquidity
Debt level affect ratio
20,00
Ratio
15,00
Capital Structure
6,71
7,29
6,99
2012
2013
2014
5,68
2015
Profitability
16,45
5,00
Company overview
10,00
14,12
Liquidity
Cash flow
Future prospects
Recommendations
Sources: Own analysis, Finanalysis
Cash Flow
250.000.000
200.000.000
150.000.000
100.000.000
50.000.000
0
2012
2013
2014
2015
179.914.000
225.525.000
191.576.000
96.915.000
141.067.000
129.877.000
98.542.000
29.826.000
101.103.000,00
95.184.000,00
196.737.000,00
180.036.000,00
Company overview
Profitability
Capital Structure
Liquidity
Cash flow
Future prospects
Recommendations
Sources: Own analysis, Finanalysis
Cash Flow
0
-20.000.000
-40.000.000
-60.000.000
-80.000.000
-100.000.000
-120.000.000
-140.000.000
2012
2013
2014
2015
-46.409.000
-66.956.000
-104.250.000
-62.350.000
-132.721.000
-115.157.000
-95.232.000
-54.806.000
-46.409.000
-66.956.000
-69.250.000
-62.350.000
Company overview
Profitability
Capital Structure
Liquidity
Cash flow
Future prospects
Recommendations
Sources: Own analysis, Finanalysis
Failing
performance
Better Gross
profit margin
than DJS
Negative
growth rate in
industry
Unique
position in
industry
Much lower
operating cash
flows
Profitability
Challenges ahead
Revenue
Revenue
growth above
industry
Company overview
Turnaround plan
3 % CAGR
2015
2020
Capital Structure
Liquidity
Cash flow
Future prospects
Recommendations
Recommendations
An attractive investment or a risky bet?
A significant decrease in profitability
Loosing ground to main competitor
Performing below industry average
Conclusion
Based on historic performance and outlook of industry, we believe that Myer will
have problems with executing the turnaround plan. Therefore an investment in
Myer is not recommended.
Company overview
Profitability
Capital Structure
Liquidity
Cash flow
Future prospects
Recommendations
Sources: Own analysis, Finanalysis
Q&A
Questions
Company overview
Profitability
Capital Structure
Liquidity
Cash flow
Future prospects
Recommendations
Sources: Own analysis, Finanalysis