This week you will examine the company’s per share data and its annual growth rate percentages to get a sense of how well management has increased sales and controlled costs. You will also gain insight into the key risks of the company’s business model.
Essential Resource: The Value Line Research Center
- Using the Stafford Library website, select the Databases option from the tabbed menu
- Select Business, Management and Finance Databases from the category options.
- Select the Value Line Research Center
- Enter the stock’s ticker symbol in the search box located in the upper-right of the screen
- Click on Quote from the hidden menu and browse the pages that follow
- Scroll to the bottom of the page to view the most recent Value Line Company Report
Note: A sample Value Line document is posted in the Content area for this week. Also posted is a guide titled How to Read a Value Line Report. Pages 9-15 of the guide provide an excellent overview of how to read a Value Line company report.
- 10-K Report, Item 1A
Your task is to prepare a report with the required information provided below. Use the same heading names (in bold) before presenting the information as requested.
- Name of Company and Ticker Symbol: Company name, ticker symbol
- 10-K Report: Paste the direct URL to the company’s most recent 10-K Report (1 point)
- Company Website: Paste the URL to the company’s website (1 point)
- Value Line’s Per Share Financial Data: Report the data for each of the last 3 years for which year-end data is available. In other words, stop just short of the Value Line column containing estimated data. The final year of data will be listed in the third column. See the Sample Value Line document in this week’s module to find the data. Format the data using the example below.
- Value Line’s Annual Rates of Change: See the Sample Value Line document to find the data. Format the data using the example below.
Value Line Per Share Financial Data 2012 2013 2014 Average Annual Price/Earnings Ratio — — — Earnings per Share — — — Dividends per Share — — — Cash Flow per Share — — — Value Line Annual Rates of Change Last 10 Years Last 5 years Next 5 Years Annual Rate of Change in Sales — — — Annual Rate of Change in Earnings — — — Annual Rate of Change in Dividends — — —
- Top 5 Risks: Review Item 1A in the 10-K report to identify and discuss what you consider to be the company’s top 5 risks. Try to select risks that are unique to the company’s industry rather than selecting risks that affect all businesses, to some degree or another.
- Evaluation: Using the information you’ve collected, comment on what you have learned about the company this week. Identify and discuss any strengths and/or concerns.
Submit your report: Once you have completed the report, create a discussion post with the name of the company in the Subject line.
Response postings: You are expected to respond to another student’s posting and address any follow-up questions asked in response to your posting. As you prepare your response to another student, consider these questions:
- Does the analysis create follow-up questions that might warrant additional information?
- Are there ‘red flags’ you see in the analysis on which you have thoughts?
- Are there places where additional information might help add context to the discussion?
- Is there something in the analysis from which you might draw different conclusions?