SWM - Mark Moore

More documents

Recommendations

Info

Table of ContentsExecutive Summary…………………………………………………………………………...………8Industry Analysis……………………………………………………………………………10Accounting Analysis………………………………………………………………………...12Financial Analysis……………………………………………………………………………14Valuation Analysis…………………………………………………………………………..16Company Overview…………………………………...........................................................17Industry Overview…………………………………………………………………………............19Five Forces Model…………………………………………………………………………………….20Rivalry Among Existing Firms……………………………………………………………21Industry Growth……………………………………………………………..........22Concentration……………………………………………………………………….22Degree of Differentiation…………………………………………………………23Switching Costs……………………………………………………………………..24Economies of Scale…………………………………………………………………24Learning Economies………………………………………………………………..25Fixed Variable Costs……………………………………………………………….26Excess Capacity……………………………………………………………………..27Exit Barriers………………………………………………………………………….28Conclusion………………………………………………………………………..….28Threat of New Entrants……………………………………………………………….…...29Scale Economies…………………………………………………………………….29First Mover Advantage…………………………………………………………….……….31Excess to Channels of Distribution…………………………………………….32Relationships………………………………………………………………………..32Legal Barriers………………………………………………………………………..33Conclusion……………………………………………………………………………34Threat of Substitute Products……………………………………………….…………..342
Buyers Willingness to Switch…………………………………….……………..35Relative Price and Performance…………………………………………….….36Conclusion……………………………………………………………………………36Bargaining Power of Buyers………………………………………………………………36Switching Costs……………………………………………………………………..37Differentiation……………………………………………………………………….38Cost and Quality Importance……………………………………………………39Number of Buyers……………………………………………………..…………...40Volume per Buyer…………………………………………………………………..41Conclusion……………………………………………………………………………42Bargaining Power of Suppliers…………………………………………………………..42Switching Costs…………………………………………………………...............42Differentiation……………………………………………………………………….43Cost and Quality Importance……………………………………………………43Number of Suppliers/Volume per Supplier…………………………………..44Conclusion……………………………………………………………………………44Analysis of Key Success Factors for the Value Creation in the Industry………….…..44Cost Leadership……………………………………………………………………………...45Economies of Scale…………………………………………………………………….……45Low Cost Distribution…………………………..………………………………..............46Efficient Production…………………………………………………………….…………..46Research and Development…………………………………………………….............47Differentiation……………………………………………………………..………………...47Conclusion………………………………………………………………………………….…48Competitive Advantage Analysis………………………………………………….……………..48Economies of Scale…………………………………………………………………….……49Efficient Production…………………………………………………………………………503
Page 1: Schweitzer-Mauduit International,
Page 5 and 6: Net Sales/Accounts Receivable……
Page 7: Enterprise/EBITDA………………
Page 11 and 12: Competitive ForceRivalry Among Exis
Page 13 and 14: they spend money devoted to R & D.
Page 15 and 16: The next part of our financial anal
Page 17 and 18: Company OverviewSchweitzer-Mauduit
Page 19 and 20: table also shows that SWM’s sales
Page 21 and 22: Competitive ForceDegree of Competit
Page 23 and 24: The size of the firms in the indust
Page 25 and 26: Total Assets 3500 3000 2500 2000 1
Page 27 and 28: Excess CapacityExcess capacity aris
Page 29 and 30: scale in the industry is vital to a
Page 31 and 32: 1400 1200 1000 800 600 400 200 0 Pr
Page 33 and 34: RelationshipsThe relationships of t
Page 35 and 36: its product (indirectly), the threa
Page 37 and 38: it is easy for them to dictate the
Page 39 and 40: As far as the purpose of tobacco pa
Page 41 and 42: Volume per BuyersThe volume a buyer
Page 43 and 44: (SWM 10-K). Considering the overall
Page 45 and 46: Cost LeadershipCost leadership mean
Page 47 and 48: likely for the customer to return a
Page 49 and 50: of pride in being the “the world
Page 51 and 52: educing product costs. The governme
Page 53 and 54:
It is evident when reading the tabl
Page 55 and 56:
The second of the two accounting po
Page 57 and 58:
SWM for the most part does a suffic
Page 59 and 60:
Schweitzer-Mauduit and its competit
Page 61 and 62:
their economic activity. If firms h
Page 63 and 64:
contracts and, to a lesser extent,
Page 65 and 66:
The ability to do this gives firms
Page 67 and 68:
their sales in U.S. dollars to mini
Page 69 and 70:
Schweitzer Mauduit 2004 2005 2006 2
Page 71 and 72:
ConclusionThe accounting strategy a
Page 73 and 74:
Schweitzer-Mauduit2004 2007 2006 20
Page 75 and 76:
than capitalized. The only reason t
Page 77 and 78:
5 Δ Sales/Cash from Sales 4 3 2
Page 79 and 80:
Δ Net Sales/Accounts Receivable
Page 81 and 82:
Δ Net Sales/Inventory 30 25 20 1
Page 83 and 84:
0.3 CFFO/OI 0.25 0.2 0.15 0.1 0.05
Page 85 and 86:
12 CFFO/NOA 10 8 6 4 2 SWM AOI UVV
Page 87 and 88:
200 Δ Asset Turnover 150 100 50
Page 89 and 90:
4 Δ Total Accurals/ Sales 2 0 -
Page 91 and 92:
ConclusionThe ratios examined above
Page 93:
of a firm’s financials. The firm
Page 96 and 97:
Restated Income Statement For ye
Page 98 and 99:
Research and Development Schweitz
Page 100 and 101:
New taxes on Net IncomeIn millions
Page 102 and 103:
Amortized Goodwill
Page 104 and 105:
obligations in the past five years,
Page 106 and 107:
1.200 Quick Asset Ratio 1.000 0.8
Page 108 and 109:
2004 2005 2006 2007 2008SWM 25.9881
Page 110 and 111:
comparison. A small ratio shows inv
Page 112 and 113:
6 Inventory Turnover 5 4 3 2 1 SWM
Page 114 and 115:
2004 2005 2006 2007 2008SWM 79.5248
Page 116 and 117:
Profitability Ratio AnalysisProfita
Page 118 and 119:
Operating Expense RatioThe operatin
Page 120 and 121:
15 Operating Pro`it Margin 10 5 0
Page 122 and 123:
Net Profit Margin 2004 2005 2006 20
Page 124 and 125:
Return on AssetsThe return on asset
Page 126 and 127:
40 Return on Equity 20 0 -20 -40
Page 128 and 129:
Internal Growth Rate 2004 2005 2006
Page 130 and 131:
industry average as much as it did
Page 132 and 133:
Debt/Equity RatioThe debt-to-equity
Page 134 and 135:
Schweitzer-Mauduit is at a low 1.61
Page 136 and 137:
Mauduit has stayed pretty stable th
Page 138 and 139:
it looks to keep declining, meaning
Page 140:
Gross profit is the next step in fo
Page 143 and 144:
Balance Sheet143
Page 145 and 146:
liabilities, we take the already fo
Page 147 and 148:
Statement of Cash FlowsThe statemen
Page 149 and 150:
Estimating Cost of CapitalCost of E
Page 151 and 152:
Size-Adjusted Cost of EquityThe CAP
Page 153 and 154:
The table below shows the liability
Page 155 and 156:
The cost of capital is the interest
Page 157 and 158:
declared overvalued. Prices falling
Page 159 and 160:
P/E ForecastedCompany PPS EPS P/E F
Page 161 and 162:
Dividends/Price RatioCompany PPS DP
Page 163 and 164:
Price/EBITDACompany Market Cap EBIT
Page 165 and 166:
Price/Free Cash FlowCompany Market
Page 167 and 168:
November 2, 2009 we had to calculat
Page 169 and 170:
Schweitzer-‐Mauduit's Free Ca
Page 171 and 172:
Now that we have calculated the tot
Page 173 and 174:
subtracting the normal earnings for
Page 175 and 176:
Long-Run Residual Income Valuation
Page 177 and 178:
Cost of EquityReturn on Equity-0.14
Page 179 and 180:
Growth RateReturn on Equity-0.14 -0
Page 181 and 182:
Return on Equity RestatedGrowth Rat
Page 183 and 184:
Once the industry analysis had been
Page 185 and 186:
AppendicesSales Manipulation Diagno
Page 187 and 188:
CFFO/ OI Change 2004 2005 2006
Page 189 and 190:
UVV 2.170832 2.687889 2.78523 2
Page 191 and 192:
Capital Structure RatiosDebt to Equ
Page 193 and 194:
3MonthRatesSUMMARY OUTPUT Regressio
Page 195 and 196:
Coefficients Intercept 0.035115 X
Page 197 and 198:
Total 71 0.987349 Intercept X Vari
Page 199 and 200:
Total 35 0.775347 Intercept X Vari
Page 201 and 202:
Total 59 1 2 0.939751 Coefficients
Page 203 and 204:
Total 23 3 5 0.624714 Coefficients
Page 205 and 206:
Residual Total 46 47 0.624852 0.848
Page 207 and 208:
Residual Total 70 71 1 1 6 0.7615
Page 209 and 210:
Residual Total 34 35 0.519917 0.775
Page 211 and 212:
Price Earnings Growth(P.E.G.)Compan
Page 213 and 214:
Discounted Free Cash Flowt 0 1 2 3
Page 215 and 216:
Price(11/1/1988)Initial Costof Equi
Page 217 and 218:
Figures in Millions (Except per S
Page 219 and 220:
Growth Rate RestatedReturn on Equit
Page 221 and 222:
Return on EquityGrowth RateKe -30%
Page 223 and 224:
Schweitzer-‐Mauduit Restated
Page 225:
Heakal, Reem. "What Are Economies o
show all

SWM - Mark Moore

Create successful ePaper yourself

Delete template?

Save as template?