Documente Academic
Documente Profesional
Documente Cultură
Rob Enslin
2/28/2013
INTRODUCTION .....................................................................................................................................2
1.1
1.2
VALUATION ........................................................................................................................................ 27
SOURCES ........................................................................................................................................... 27
APPENDIX .......................................................................................................................................... 28
9.1
FINANCIAL STATEMENTS .................................................................................................................. 28
9.1.1
Income Statement .................................................................................................................... 28
9.1.2
Balance Sheet ......................................................................................................................... 29
9.1.3
Cash Flow Statement ................................................................................................................. 30
9.1.4
Ratios ................................................................................................................................... 30
1|Page
1 Introduction
1.1 Idea Generation:
Screening Tool
Theme
Other
2|Page
The picture below of earnings relative to price over time is supportive of a potential investment opportunitiy with
price recently dipping below earnings.
Spars fundamental scorecard was less impressive, scoring 331/422 overall. It scored weakly on market positioning
and financial strength. Intial perceptions are that its franchise model resulting in lower margins may explain this. A
more in-depth assessment will provide us with more information.
An analysis of risk and liquity indicate a maximum drawdown of 11.61% (suggesting that it is defensive in nature)
and a 30 day value traded percentage of 122.75% relative to Efficient Selects AUM representing a pass on liquidity.
Finally, based on 5 year historic data and an equal weighting towards PE, DY, PS, PB and PCF metrics, fair value was
estimated at 110.45 1/8 analysts had it on a buy rating, 5/8 on a hold rating and 2/8 on a sell rating.
2 Company Overview
2.1 Business Description
Spar Group Ltd. is a wholesaler and distributor of goods and services to SPAR grocery stores, Build It builders
merchandise outlets, and TOPS and SPAR liquor stores. The company operates seven main distribution centers
which are located close to the major metropolitan areas. These distribution centers service SPAR stores, Build It
outlets and TOPS and SPAR stores across South Africa and neighbouring countries.
Spars Business Model
SPAR operates under licence agreement with SPAR International in Amsterdam. This licence agreement covers
South Africa, Botswana, Namibia, Swaziland and Mozambique.
Independent retailers who elect to be part of the SPAR family sign a membership agreement with the Guild which
provides them with:
3|Page
In turn the independent retailers undertake to adhere to certain standards and procedures as laid out in the
membership agreement.
4|Page
2.2 History
Back in 1932 in the Netherlands, a wholesaler named Adriaan van Well, started his organisation DESPAR. The idea
was simple: unite the efforts of both the independent wholesaler and retailer in order to mitigate the effects of
grocery chains which were fast taking over the market. The name of the organisation has changed slightly and it has
spread into 35 countries and 5 continents.
In South Africa, at the beginning of the 1960s, eight wholesalers got together and decided to introduce the SPAR
concept into the country. In 1963 it was launched to service some 500 small retailers and now, 46 years later, the
SPAR Group Ltd. operates out of seven modern distribution centres and services over 800 SPAR stores across
southern Africa.
5|Page
Distribution Centres
DC 1
DC 2
DC 3
DC 4
6|Page
DC 5
DC 6
DC 7
The Group owns three key retail brands that all operate in different spheres, namely SPAR, BUILD IT and TOPS.
7|Page
Distribution
Centre
(100.00%)
As mentioned, the geographic split is based on where the DC is situated. Below is how management reports
geographic segmentation.
8|Page
9|Page
South Africa
(100.00%)
3 Quality Analysis
3.1 Market Positioning
3.1.1 Qualitative Score
3.1.1.1
3.1.1.1.1
Economic Moat
Supplier Power
Supplier power with suppliers is average to above average. Being a large established retailer, it is in the suppliers
best interests to maintain a good working relationship with Spar. There is however demand from Spars
competitors and therefore not complete bargaining power with suppliers.
3.1.1.1.2
Buyer Power
Bargaining power by buyers is high. Cost conscious consumers are sensitive to price changes and have the ability to
shop at Spars competitors with relative ease. Buyer bargaining power is therefore high.
3.1.1.1.3
Degree of Rivalry
Degree of rivalry amongst Spars competitors is fierce. Primary competitors include: Shoprite, Pick n Pay,
Woolworths,Game, Ultra Liquor, Cashbuild and Solly Kramer.
3.1.1.1.4
Threat of new entrants is moderate. Competitors are likely to arise from developed market players seeking new
avenues of growth, similar to what we saw with Walmart-Massmart. Supply-side economies of scale and access to
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supplies products along with large capital requirements in setting up the distribution channels protect Spar
marginally.
3.1.1.1.5
Threat of substitutes
The most likely substitute is online shopping. Whilst the concept has been around for some time, the number of
people switching over to online shopping has started to increase. Technology, including smart phone and tablet
devices, have assisted this change. Spars current structure is however easily adaptive to online sales as it relies on
a centralised distribution model.
3.1.1.1.6
Overall, Spar has a low degree of pricing power. Due to the generic product (i.e. foods) that Spar sells, its pricing
power ability is limited.
3.1.1.2
3.1.1.2.1
Whilst the calculation below is incomplete in that it does not include all competitors, including Spars main
competitors, calulating market share based on revenue shows a healthy pattern for Spar. A similar pattern exists
for Shoprite at the expense of Pick n Pay.
Revenue
Spar
Shoprite
Pick n Pay
Woolworths
2012
43557
20.7%
82731
39.4%
55331
26.3%
28604
13.6%
2011
38814
20.6%
72298
38.3%
51946
27.5%
25582
13.6%
2010
34844
19.3%
67402
37.4%
54735
30.3%
23393
13.0%
2009
31962
19.7%
59319
36.5%
49862
30.7%
21175
13.0%
2008
26742
19.1%
47652
34.1%
45381
32.5%
20065
14.3%
210223
188640
180374
162318
139840
100.0%
100.0%
100.0%
100.0%
100.0%
3.1.1.2.2
Market Concentration
The food retail market in South Africa is concentrated. According to a Thomas White Global Investing Survey in July
2011, Shoprite, Pick n Pay, Spar, Massmart and Metcash constitute 80% of retail sales.
3.1.1.3
3.1.1.3.1
Financial Comparison
5 Year Margin Analysis
Operating margins have improved over the past 5 years whilst net profit margin has been flat/marginally weaker.
This a positive signal as Spar has also been able to grow market share over the period.
Gross Margin (%)
Operating Margin (%)
Pretax Margin (%)
Net Margin (%)
5 Yr. Av.
8.30
3.01
3.63
2.48
Sep '12
8.52
3.46
3.48
2.43
Sep '11
8.96
3.60
3.62
2.45
Sep '10
7.92
2.84
3.75
2.63
Sep '09
8.04
2.46
3.59
2.33
Sep '08
8.08
2.70
3.73
2.55
11 | P a g e
3.1.1.3.2
Return on equity (ROE) over the past 5 years has been strong, averaging 40.33%. Net income has grown slower
relative to equity, indicating that Spars high ROE is not a function of gearing with debt.
5 Yr. Av.
Net Income
% growth
9.21%
Sept '12
Sept' 11
Sept '10
Sept' 09
Sept '08
1058.9
952.6
915.8
745.2
681.6
11.16%
4.02%
22.89%
9.33%
2838
2490
2187
1940
13.98%
13.85%
12.73%
30.38%
41.87%
38.41%
Equity
% growth
ROE
13.78%
1488
45.81%
3.1.1.3.3
Return on assets (ROA) has been stable over the past 5 years with assets growing at an average pace of 11.48%
compared to net income growth of 9.21%.
5 Yr. Av.
Sept '12
1058.9
952.6
9.21%
11.16%
4.02%
9895
8302
7529
6540
11.14%
19.19%
10.27%
15.12%
12.10%
11.48%
10.70%
11.47%
12.16%
11.39%
Net Income
% growth
Assets
% growth
ROA
Sept' 11
Sept '10
Sept' 09
Sept '08
915.8
745.2
681.6
22.89%
9.33%
5834
11.68%
3.1.1.3.4
Five year earnings growth has been good. Diluted EPS has grown at a 5 year average growth rate of 16.7%. What is
also impressive is that earnings growth has been positive for all 5 years even during the financial crisis, reflecting its
defensive characteristics.
5 Yr. Av.
EPS (diluted)
EPS (diluted) Growth (%)
16.67
EPS (basic)
EPS (basic) Growth (%)
17.43
Sep '12
Sep '11
Sep '10
Sep '09
Sep '08
Sep '07
5.71
5.21
5.06
4.26
3.91
2.99
9.44
3.00
18.83
9.09
30.60
29.05
6.16
5.56
5.36
4.39
4.07
3.13
10.82
3.66
21.98
8.09
29.87
30.15
3.1.1.4
Conclusion
Evidence above suggests good market positioning. On all factors analysed above, Spar measures satisifactory to
well.
12 | P a g e
Spar makes use of a decentralised distribution model. As mentioned above, Spar operates seven main distribution
centres which are located close to the major metropolitan areas.
3.2.1.2
Ease of understanding
Spar Group has a very understandable business model. It can be discribed as a whole distribution business with 7
distribution centres. Its stores are franchised out. This has allowed the Group to achieve scale as well as owner
managed businesses therefore the incentive and customisation of each owner is high.
3.2.1.3
Yes through its distribution system, in-store restuarants and recently added Tops bottle stores and Build-it stores.
3.2.1.5
Conclusion
Spars business model can be summarised as effective and well structured for fast expansion if applied outside of
RSA. Its owner managed businesses model acts as an inherant quality control. It is less profitable than owning the
stores 100% but benefits as a differenciated product offering (i.e. each Spar store is unique and suited to the
region).
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3.3 Management
3.3.1 Qualitative Score
3.3.1.1
Corporate Governance
14 | P a g e
3.3.1.2
Ownership Structure
3.3.1.3
Track-record
Managements Experience
The Spars management is the executive committee of Spar responsible for ensuring the development,
implementation and execution of Group strategy. The SMB meets 3 times a year.
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3.3.1.5
Conclusion
Spar Group meets the requirements of the new Companies Act and have applied the principles contained in the
King Report (King III). The structuring of the board and committees are all also within reason. The only aspect of the
management and the board of directors is surrounding remuneration, where there is less transparency.
20 | P a g e
Revenue growth
Sep '11
Sep '10
Sep '09
Sep '08
Sep '07
Sep '06
Sep '05
Sep '04
Sep '03
43 557.40 38 814.00 34 844.20 31 962.10 26 742.20 21 704.00 17 009.60 13 598.96 11 985.15 10 121.05
12.2%
11.4%
9.0%
19.5%
23.2%
27.6%
25.1%
13.5%
18.4%
3.4.1.2
Margin analysis
Margins have remained relatively stable over the past 5 years, with its operating margin improving. Notice the
colour chart regarding direction: FYE 2011 was the peak. Margins overall are thin typical of a food retail business,
high volumes, small margins.
5 Yr AVG
Sep '12
Sep '11
Sep '10
Sep '09
Sep '08
Sep '07
8.30
8.52
8.96
7.92
8.04
8.08
8.19
3.01
3.46
3.60
2.84
2.46
2.70
2.65
3.63
3.48
3.62
3.75
3.59
3.73
3.66
2.48
2.43
2.45
2.63
2.33
2.55
2.41
Profitability
3.4.1.3
Financial Leverage
Below are the 5 year average numbers used as inputs to calculate operating leverage, financial leverage and
subsquently, total leverage. Total leverage of the income statement is low at 1.02. Financial leverage is low.
As a cross-check, Spar has a 5 yr Avg Debt/Assets ratio of 3.8%.
Degree of Operating Leverage
=
=
=
=
=
% change in EPS
% change in EBIT
102.47
162.12
21 | P a g e
0.63
% change in EPS
% change in sales
102.47%
100.69%
3.4.1.4
Ratio Analysis
3.4.1.4.1
1.02
Du Pont Analysis
Sales
Sales
Assets
Assets
ROE
Equity
2008
2.5
4.40
3.49
38.4
2009
2.3
4.68
3.33
35.8
2010
2.6
4.63
3.44
41.4
2011
2.5
4.89
3.37
41.2
2012
2.4
4.58
3.92
43.1
5 Yr. Av.
2.46
4.64
3.51
39.99
3.4.1.4.2
Profitability Analysis
Overall assessment of figures below are good with the caveat that margins are thin. ROA, ROE and ROC are
impressive.
5 Yr. Av.
Sep '12
Sep '11
Sep '10
Sep '09
Sep '08
Sep '07
8.30
8.52
8.96
7.92
8.04
8.08
8.19
3.01
3.46
3.60
2.84
2.46
2.70
2.65
3.63
3.48
3.62
3.75
3.59
3.73
3.66
2.48
12.25
2.43
11.64
2.45
12.03
2.63
13.02
2.33
12.04
2.55
12.52
2.41
12.17
44.17
39.76
40.74
44.38
43.48
52.48
52.25
38.53
38.92
35.79
36.56
36.45
44.93
47.21
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3.4.1.4.3
Solvency Analysis
Solvency ratios vary by industry, however a solvency ratio above 20.0% is considered financially sound. Spars
solvency ratio of 17.95% is therefore on the threshold of what is considered acceptable.
5 year Average Solvency Ratio
=
=
=
3.4.1.4.4
Liquidity Analysis
Current ratio: improving but still below acceptable 2:1, it is something to highlight
Cash ratio: improving but below the 0.5:1 acceptable level, therefore it is a flag.
Overall, liquidity and solvency ratios have been on the threshold of acceptable and worthy of keeping an eye on.
Industry charateristics are partly justifiable for lower readings.
5 Yr. Av.
Sep '12
Sep '11
Sep '10
Sep '09
Sep '08
Sep '07
42.46
43.15
44.06
42.87
40.61
41.61
41.12
10.67
11.68
10.82
10.31
10.24
10.32
9.56
40.45
44.67
40.16
37.45
37.01
42.93
48.88
12.69
10.16
14.71
15.73
13.83
9.00
1.80
Current Ratio
1.08
1.12
1.10
1.08
1.07
1.02
1.01
Quick Ratio
0.88
0.92
0.90
0.89
0.87
0.83
0.85
Cash Ratio
0.04
0.12
0.02
0.02
0.02
0.01
0.12
Gross Margin
Operating Margin
Debt/Assets
ROE
ROA
ROIC
EPS Growth
Spar
8.3
3.01
3.82
44.17
12.25
43.72
13.8
Shoprite
17.08
2.85
5.98
37.97
12.43
36.76
23.7
Pick n Pay
9.2
1.72
9.93
58.88
9.79
40.17
-0.2
Woolworths
28.86
5.83
13.69
39.76
14.93
31.69
14.8
Massmart
9.89
3.92
7.05
39.08
8.65
34.89
0.7
Cashbuild
21.76
5.01
0.12
30.22
10.73
30.11
18.6
23 | P a g e
Relative to its competitors, Spar scores well on most metrics. Its gross margin is lower compared to peers due to its
franchise model, however operating margin quickly improves. All other metrics are scored on the upper end of
favourable compared to peers.
3.4.1.6 Conclusion
Spars financial position is good. It scores well compared to its peers. One exception to highlight is solvency and
liquidity metrics scoring just below what is considered acceptable. It is important to highlight though that limits
vary from industry to industry.
4 SWOT ANALYSIS
4.1 Strengths
Spar has been able to maintain food market share and grow already-dominant shares in liquor and building
materials.
Groups warehouse capacities are more than strong enough to support future growth.
Due to the companys owner managed format, unions have found it harder to unionise Spars staff.
More customised store offering based on demographics of store location.
4.2 Weaknesses
Spar, along with other food retailers, is subject to food inflation which can be volatile.
Spars wholesale distributor model should struggle to be as cheap on price of its goods as its competitors in
theory.
4.3 Opportunities
Spar holds rights to operate in Mozambique with developments taking place in Mozambique and Spars
Nelspruit warehouse well positioned to distribute into the country, there is an opportunity for growth.
Spar also operates in Namibia, Botswana and Zimbabwe.
Higher food inflation positively impacts revenues and ultimately profits.
4.4 Threats
24 | P a g e
5 INDUSTRY OUTLOOK
5.1 Industry life-cycle classification
Spar is considered to be in the mature stage of the industry life-cycle. The most obvious second wave of growth will
come from expansion into surrounding African countries.
BUSINESS DRIVERS
Positive food inflation
Disposable income trends
African expansion
25 | P a g e
Score
poor
below average
average
above average
excellent
poor
below average
average
above average
excellent
Degree of Competion
high
fairly high
moderate
fairly low
low
high
fairly high
moderate
fairly low
low
Threat of Substitutes
high
fairly high
moderate
fairly low
low
Decreased
Marginally Decreased
Flat
Marginally Increased
Increased
Market Concentration
low
fairly low
average
fairly high
high
poor
poor
poor
poor
below average
below average
below average
below average
average
average
average
average
above average
above average
above average
above average
excellent
excellent
excellent
excellent
3
4
4
3
poor
below average
average
above average
excellent
1
complex
weak
high
poor
2
fairly complex
fairly weak
fairly high
below average
3
average
average
average
average
4
fairly simple
fairly strong
fairly low
above average
5
simple
strong
low
excellent
Score
5
4
3
3
poor
below average
average
above average
excellent
1
poor
poor
poor
poor
poor
2
below average
below average
below average
below average
below average
3
average
average
average
average
average
4
above average
above average
above average
above average
above average
5
excellent
excellent
excellent
excellent
excellent
Score
4
4
4
4
3
poor
below average
average
above average
excellent
1
strongly disagree
strongly disagree
strongly disagree
strongly disagree
strongly disagree
strongly disagree
strongly disagree
2
disagree
disagree
disagree
disagree
disagree
disagree
disagree
3
neutral
neutral
neutral
neutral
neutral
neutral
neutral
4
agree
agree
agree
agree
agree
agree
agree
5
strongly agree
strongly agree
strongly agree
strongly agree
strongly agree
strongly agree
strongly agree
Score
4
4
3
4
4
2
2
poor
below average
average
above average
excellent
poor
below average
average
above average
excellent
Ease of Understanding
Forward looking strategy
Execution risk associated with strategy
Vertical intergration of the value chain
3.3. Management
3.2.2. Qualitative
3.3.2.1. Corporate Governance
3.3.2.2. Ownership Structure
3.3.2.3. Track Record
Corporate Governance
Management's ownshership in the company is acceptable
Mangement has created shareholder wealth
Management has delivered on expectations
Management are highly experienced in their field of expertise
Overall
Screening Tools
Theme
Other
Weak
Average
Strong
Houseview
Call
Equity
Sector
Economic Cycle View
Negative
Negative
Negative
Early Recovery
Stable Negative
Stable Negative
Stable Negative
Mid Recovery
Stable
Stable
Stable
Late Recovery
Stable Positive
Stable Positive
Stable Positive
Recession
Positive
Positive
Positive
Industry Outlook
Stock Classifaction
Industry life-cycle Classification
Stock Market Cycle Analysis: When does the stock perform best
Turn Around
Introduction
Early Recovery
Slow Grower
Growth
Mid Recovery
Stalwart
Mature
Late Recovery
Cyclical
Decline
Recession
Fast Grower
Business Drivers
1)
2)
3)
4)
Final Comments
26 | P a g e
7 VALUATION
Please find below a summary of the Spar Valuation. For a more detailed breakdown, please refer to valuation
template.
Weighted Valuation
Historical Valuation
Relative Valuation
Weight
60%
40%
Buy Price
126.07
128.78
Target Price
198.68
149.54
Sell Price
181.32
136.48
Weighted Valuation
100%
127.16
179.02
163.38
8 SOURCES
Nedbank
UBS
Factset
Spar company website
27 | P a g e
9 APPENDIX
9.1 FINANCIAL STATEMENTS
9.1.1 Income Statement
Sep-12
Sep-11
Sep-10
Sep-09
Sep-08
Sep-07
Final
Final
Final
Final
Final
Final
Sales/Revenue
43557.40
38814.00
34844.20
31962.10
26742.20
21704.00
39846.70
35336.60
32083.70
29393.00
24582.50
19926.90
Gross Income
3710.70
3477.40
2760.50
2569.10
2159.70
1777.10
SG&A Expense
2188.70
2065.70
1759.60
1648.10
1437.70
1201.40
13.00
12.90
13.00
136.20
0.00
0.00
1509.00
1398.80
987.90
784.80
722.00
575.70
32.30
34.20
340.00
390.40
297.30
229.80
Interest Expense
26.00
24.70
20.90
29.50
19.30
10.30
0.10
3.70
#N/A
-1.00
1.50
0.50
Pre-tax Income
1515.20
1404.60
1307.00
1146.70
998.50
794.70
Income Taxes
459.80
452.00
391.60
401.50
316.90
271.70
3.50
0.00
0.40
0.00
0.00
#N/A
1058.90
952.60
915.80
745.20
681.60
523.00
0.00
0.00
0.00
0.00
0.00
0.00
Net Income
1058.90
952.60
915.80
745.20
681.60
523.00
1058.90
952.60
915.80
745.20
681.60
523.00
EPS (recurring)
5.71
5.23
5.06
4.26
#N/A
2.99
EPS (basic)
6.16
5.56
5.36
4.39
4.07
3.13
EPS (diluted)
5.71
5.21
5.06
4.26
3.91
2.99
EBITDA
1634.40
1521.30
1096.20
877.20
795.00
629.10
28 | P a g e
Sep-11
Sep-10
Sep-09
Sep-08
Sep-07
Final
Final
Final
Final
Final
Final
841.60
96.40
85.20
68.50
57.90
453.50
5379.80
4919.80
4449.90
3735.60
3376.20
2721.50
Inventories
1415.60
1135.00
959.20
853.10
795.70
594.50
35.80
26.60
28.60
26.40
24.20
45.50
7672.80
6177.80
5522.90
4683.60
4254.00
3815.00
1588.00
1550.40
1521.00
1425.80
1083.30
736.20
60.90
23.60
41.50
17.30
56.10
117.50
171.70
154.10
139.10
143.30
145.60
124.60
Intangible Assets
391.00
381.90
299.70
245.60
245.60
245.60
10.90
13.20
3.20
22.00
15.70
14.50
Other Assets
0.00
0.60
1.50
2.20
33.60
4.10
Total Assets
9895.30
8301.60
7528.90
6539.80
5833.90
5057.50
0.00
114.90
531.10
351.00
310.00
11.30
Accounts Payable
5513.90
4308.90
3506.60
3099.60
2873.50
2956.60
6.70
40.60
0.40
2.30
121.30
71.30
1300.80
1131.20
1094.10
937.20
856.60
738.80
6821.40
5595.60
5132.20
4390.10
4161.40
3778.00
Long-Term Debt
0.00
0.00
0.00
0.00
0.00
115.00
103.40
85.50
75.10
67.90
60.80
54.80
3.90
0.60
#N/A
#N/A
#N/A
#N/A
Other Liabilities
129.00
130.40
134.40
141.50
123.90
0.00
Total Liabilities
7057.70
5812.10
5341.70
4599.50
4346.10
3947.80
Common Equity
2837.60
2489.50
2187.20
1940.30
1487.80
1109.70
2837.60
2489.50
2187.20
1940.30
1487.80
1109.70
0.00
0.00
0.00
0.00
0.00
0.00
Total Equity
2837.60
2489.50
2187.20
1940.30
1487.80
1109.70
9895.30
8301.60
7528.90
6539.80
5833.90
5057.50
Assets
29 | P a g e
Sep-11
Sep-10
Sep-09
Sep-08
Sep-07
Final
Final
Final
Final
Final
Final
1510.20
1404.40
1303.30
1141.30
971.90
774.70
125.40
122.50
108.30
92.40
73.00
53.40
Other Funds
0.00
0.00
0.00
0.00
0.00
0.00
1201.60
1158.00
1074.90
846.70
845.80
649.10
622.40
204.30
-257.50
-163.60
-870.10
521.90
1824.00
1362.30
817.40
683.10
-24.30
1171.00
Capital Expenditures
-74.10
-41.50
-36.30
-51.10
-60.80
-38.70
-9.10
-82.20
-54.10
0.00
0.00
0.00
2.30
4.90
2.00
100.60
5.20
18.00
Purchase/Sale of Investments
-141.10
-135.40
-183.90
-390.40
-365.30
-275.90
Other Funds
0.00
0.00
-8.70
72.40
64.60
-97.20
-268.50
-356.30
-393.80
Operating Activities
Investing Activities
-222.00
-254.20
-281.00
Financing Activities
Cash Dividends Paid
-670.50
-624.60
-578.50
-467.70
-355.40
-246.30
-71.40
-56.10
-121.30
22.60
29.60
-80.50
0.00
0.00
0.00
41.00
-0.40
-37.60
Other Funds
0.00
0.00
0.00
0.00
0.00
0.00
-680.70
-699.80
-404.10
-326.20
-364.40
-741.90
0.00
0.00
0.00
0.10
1.20
-0.80
860.10
427.40
-163.40
10.60
-705.60
412.00
1749.90
1320.80
781.10
632.00
-85.10
1132.30
9.1.4 Ratios
Sep-12
Sep-11
Sep-10
Sep-09
Sep-08
Sep-07
Price/Earnings (x)
20.79
17.33
17.33
14.72
12.42
17.61
Price/Sales (x)
0.51
0.43
0.46
0.34
0.32
0.42
7.78
6.65
7.27
5.69
5.77
8.44
Valuation
30 | P a g e
13.02
12.91
20.56
16.57
-363.40
8.23
14.06
11.85
16.55
14.42
12.24
15.70
12.99
10.89
10.89
14.91
11.11
14.37
0.49
0.43
0.47
0.35
0.33
0.42
0.00
5.71
0.01
5.23
0.03
5.06
0.03
4.26
0.04
#N/A
0.01
2.99
EPS (basic)
6.16
5.56
5.36
4.39
4.07
3.13
EPS (diluted)
5.71
5.21
5.06
4.26
3.91
2.99
DPS
4.30
3.77
3.62
3.22
3.22
1.85
3.36
3.92
3.90
4.98
5.05
3.36
69.84
67.85
67.54
73.28
62.73
59.11
8.52
8.96
7.92
8.04
8.08
8.19
5.02
5.32
5.05
5.16
5.38
5.54
3.46
3.60
2.84
2.46
2.70
2.65
3.48
3.62
3.75
3.59
3.73
3.66
2.43
2.45
2.63
2.33
2.55
2.41
11.64
12.03
13.02
12.04
12.52
12.17
39.76
40.74
44.38
43.48
52.48
52.25
38.92
35.79
36.56
36.45
44.93
47.21
39.76
40.74
44.38
43.48
50.26
49.03
39.76
40.74
44.38
43.48
52.48
52.25
Revenue/Employee
11.16
10.17
12.91
12.11
10.41
9.07
Net Income/Employee
0.27
0.25
0.34
0.28
0.27
0.22
8.46
8.29
8.51
8.99
8.77
8.88
43.15
44.06
42.87
40.61
41.61
41.12
31.24
33.75
35.41
35.65
35.37
38.18
11.68
10.82
10.31
10.24
10.32
9.56
8.17
9.09
9.75
9.86
8.50
7.47
44.67
40.16
37.45
37.01
42.93
48.88
10.16
14.71
15.73
13.83
9.00
1.80
4.40
4.68
4.63
4.89
4.58
4.29
51.16
66.67
89.18
108.90
288.79
586.59
Current Ratio
1.12
1.10
1.08
1.07
1.02
1.01
Quick Ratio
0.92
0.90
0.89
0.87
0.83
0.85
Cash Ratio
0.12
0.02
0.02
0.02
0.01
0.12
Profitability
Efficiency
Liquidity
31 | P a g e
Credit Analysis
Net Debt/EBITDA (x)
-0.51
0.01
0.41
0.32
0.32
-0.52
-0.54
0.01
0.42
0.27
0.34
-0.55
0.00
0.08
0.48
0.40
0.39
0.20
62.86
61.59
52.45
29.74
41.19
61.08
58.04
56.63
47.27
26.60
37.41
55.89
58.04
56.63
47.27
26.60
37.41
55.89
70.15
55.15
39.11
23.16
-1.26
113.69
LT Debt/EBITDA (x)
0.00
0.00
0.00
0.00
0.00
0.18
LT Debt/Equity (%)
0.00
0.00
0.00
0.00
0.00
10.36
0.00
0.00
0.00
0.00
0.00
9.30
0.00
0.00
0.00
0.00
0.00
2.27
0.00
4.62
24.28
18.09
20.84
11.38
0.00
1.38
7.05
5.37
5.31
2.50
-29.66
0.71
16.40
12.33
14.02
-26.47
0.00
4.41
19.54
15.32
17.24
10.22
-0.70
0.02
0.41
0.33
0.30
-0.50
LT Debt/FFO (x)
0.00
0.00
0.00
0.00
0.00
0.18
#N/A
11.50
1.47
1.80
-0.27
8.97
#N/A
11.86
1.54
1.95
-0.08
9.27
32 | P a g e