Project #69062 - Company Analysis for Visa Company (V)

 

FINA 408 Individual Final Company Analysis Project

 

Spring 2015

 

The most recent data should be used in your analyses (i.e., data from the most recently-filed Form 10-K, proxy statement, etc.). Cite any sources used other than the company’s SEC filings.  The following is an outline for the first two sections of your individual project:

 

  1. Governance and Communication Analysis

    1. Answer and discuss the importance of the following:

      1. Who is the company’s current CEO?  Is he or she also the Chair of the Board?

      2. Who serves on the board’s Audit Committee?  How many members are Financial Experts?  What experience qualifies them for that designation?

      3. What was the CEO paid last year?  What portion of his or her total pay was in the form of bonus?  In the form of stock-based awards?  What performance measures were used to determine the CEO’s pay?

      4. Who or what entity holds the highest percentage of the company's stock?  Are most of the beneficial owners reported individuals or institutions?

      5. How many common shares are outstanding? Is there more than one class of common stock outstanding?  If so how many votes do each share of each class get? 

    2. Analyst Call

      1. Listen to a recording of an analyst call (AKA earnings call or quarterly conference call) for your company.  Listen to about 15-20 minutes of the call and summarize your observations, including any questions that you might have wanted to ask the CEO/CFO, etc. 

         

  2. Industry and Strategy Analysis

    1. Industry Analyses

      1. Porter’s Five Forces

        1. Rivalry among existing firms

        2. Threat of new entrants

        3. Threat of substitutes

        4. Buyer power

        5. Supplier power

      2. Value Chain Analysis

        1. Industry Value Chain

        2. Focus of your company

 

 

 

    1. Company Strategy Analysis

      1. Is your company following a Low Cost Leader or a Product/Service Differentiation Strategy?

      2. How should this impact their financials?

         

  1. Accounting and Financial Analysis

    1. Recasted Income Statement (3 years)

    2. Recasted Balance Sheet (3 years)

    3. Common Size Income Statement (3 years)

    4. DuPont Analysis (1 year)

    5. Profitability Analysis Ratios (3 years)

      1. Profit Margin

      2. Return on Assets (ROA)

      3. Return on Equity (ROE)

      4. Gross profit margin

      5. EBIT Margin

      6. Accounts Receivable Turnover and Days’ Receivable

      7. Inventory Turnover and Days’ Inventory

      8. Accounts Payable Turnover and Days’ Payable

    6. Risk Analysis

      1. Non-Financial Risk Analysis

        1. Review the Risk Factors section of the company’s most recent 10-K and discuss the three factors mentioned which, in your opinion, may have the most significant impact on the future of the company

      2. Financial Risk Ratios (3 years)

        1. Current ratio

        2. Quick ratio

        3. Cash ratio

        4. Liabilities-to-equity ratio

        5. Interest coverage ratio 

           

  2. Forecasting

    1. Growth Rate

      1. Sustainable Growth Rate

        1. Calculate the company’s dividend payout ratio (if applicable and Sustainable Growth Rate)

      2. Weighted Average Cost of Capital (from FINA 300)

        1. Use the CAPM to compute the required rate of return on equity capital for the company. 

        2. Determine the cost of debt (if any) and the cost of preferred stock (if any)

        3. Compute the weighted average cost of capital for the company as of the start of the next fiscal year.

    2. Forecasted Income Statements

      1. Calculate projected net income for the company for the next five years based on forecasted income statements.

      2. Explain the process and assumptions used to make the forecasts for each line item of the forecasted income statements.

         

 

Subject Business
Due By (Pacific Time) 05/10/2015 12:00 am
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