Country Road Limited
| 2010 | | |
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Country Road Limited | Business analysis and valuation |
* Table of Contents Executive summary 3 1. The Retail Industry & its Prospects 4
1.1 Current & Future Overview 4 2 Corporate strategy 4 3 Earnings Manipulation Assessment & Findings 5 4 The Facts: Financial Ratio Analysis 6 5 Profitability and Operating management of CR 6
5.1 Dupont System Analysis 6
5.2 CR’s operating management 8 6 Investment management 8
6.1 Working capital management 8
6.2 Long-term assets 9 7 Financial management 10
7.1 Short-term liquidity 10
7.2 Financial structure and long-term solvency 11 8 Dividend payout ratio and Sustainable growth rate 12 9 Cash flow 12 10 Forecasting 13
10.1 Sales Growth 13
10.2 Cash flow forecast 14
10.3 Net Operating Profits after Tax (NOPAT) margins 16
10.4 Working capital to Sales 16
10.5 Long-term assets to Sales 17
10.6 Capital structure 17 11 Company valuation 18
11.1 Estimating cost of capital for Country Road Ltd 18
11.2 Value estimates of Country Road Ltd 19
11.3 Sensitivity analysis 20 Conclusion and recommendation 21 Appendix 1 Country Road, its competitors and retail industry 22 Appendix 2 Financial Strength 23 Appendix 3 Management Strength 24 Appendix 4 Profitability 24 Appendix 5 Investment Management 24 Appendix 6 Accounting Analysis Summary 25 Appendix 7 Calculation of a Beta for Country Road Ltd 26
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* Executive summary
The objective of this report is to provide investment recommendations for Country Road Pty Ltd (CR). CR currently has a strong brand reputation and continues to grow by opening new stores and currently operating in prime retail locations across Australia, New Zealand and South Africa.
The report begins with exploring CR’s internal and external environment and assessing CR’s overall strategic position in the Australian retail environment.
Also the report provides an accounting analysis,
| |
Country Road Limited | Business analysis and valuation |
* Table of Contents Executive summary 3 1. The Retail Industry & its Prospects 4
1.1 Current & Future Overview 4 2 Corporate strategy 4 3 Earnings Manipulation Assessment & Findings 5 4 The Facts: Financial Ratio Analysis 6 5 Profitability and Operating management of CR 6
5.1 Dupont System Analysis 6
5.2 CR’s operating management 8 6 Investment management 8
6.1 Working capital management 8
6.2 Long-term assets 9 7 Financial management 10
7.1 Short-term liquidity 10
7.2 Financial structure and long-term solvency 11 8 Dividend payout ratio and Sustainable growth rate 12 9 Cash flow 12 10 Forecasting 13
10.1 Sales Growth 13
10.2 Cash flow forecast 14
10.3 Net Operating Profits after Tax (NOPAT) margins 16
10.4 Working capital to Sales 16
10.5 Long-term assets to Sales 17
10.6 Capital structure 17 11 Company valuation 18
11.1 Estimating cost of capital for Country Road Ltd 18
11.2 Value estimates of Country Road Ltd 19
11.3 Sensitivity analysis 20 Conclusion and recommendation 21 Appendix 1 Country Road, its competitors and retail industry 22 Appendix 2 Financial Strength 23 Appendix 3 Management Strength 24 Appendix 4 Profitability 24 Appendix 5 Investment Management 24 Appendix 6 Accounting Analysis Summary 25 Appendix 7 Calculation of a Beta for Country Road Ltd 26
*
* Executive summary
The objective of this report is to provide investment recommendations for Country Road Pty Ltd (CR). CR currently has a strong brand reputation and continues to grow by opening new stores and currently operating in prime retail locations across Australia, New Zealand and South Africa.
The report begins with exploring CR’s internal and external environment and assessing CR’s overall strategic position in the Australian retail environment.
Also the report provides an accounting analysis,