Financial Research Report Marquita Jackson Dr. Glenn Stephens Financial Management – FIN 534 March 4, 2014 Abstract Imagine that you are a financial manager researching investments for your client that aligns with its investment goals. Use the Internet or the Strayer Library to research any U.S. publicly traded company that you may consider as an investment opportunity for your client. The assignment will cover the following topics: Rationale for choosing the company for which to invest Ratio Analysis Stock price analysis Recommendations In this paper, provide a rationale for the U.S. publicly traded company that has been selected, indicating the significant factors driving your decision as a financial manager. Determine the profile of …show more content…
In December 2013, Goldman Sachs analysts upgraded the oil giant to a buy rating, citing a “more defensive” posture that is appropriate for 2014. The firm thinks the company will “turn the corner” before rival Chevron when it comes to production growth as well (Schaefer 2013). Determine the profile of the investor for which this company may be a fit, relative to that potential investor’s investment strategy: Big Oil is especially suited for investors looking to enter the Mexican market given their large international operations. Exxon Mobil has a leg up on some of its competitors, such as Chevron, because the company has a history of doing business in Mexico through its chemical division. Exxon Mobil currently has 250 employees in the country. The company operates a lubricant blending plant in Vallejo and a chemical plant in the port of Tuxpan. The company also has offices in Mexico City. Mexico is the world’s 10th largest oil producer. On December 23, 2013, President Enrique Pena Nieto signed into law legislation, which required changing the Mexican constitution, to open Mexico’s energy market to foreign investment (Zacks Equity Research 2014). Exxon Mobil Corp is the easiest oil and gas stock to hide out in and the company remains undervalued. Exxon Mobil is an equity investment meaning that that the money that is invested in a firm by its owners or holders of common stock but which is not
3. Using the cash flow indicator and investment valuation ratios, discuss which company is more likely to have satisfied stockholders.
You would not buy a home, car or other large purchases without researching what product offered you the most for your money. The same is true when investing in a company. Investors do avid research on multiple companies to find what company matches the investors' criteria. In this paper Team C will research both AT&T and Verizon's financial documents. Team C will compare selected ratios, cash flow and make recommendations how both companies can manage cash flow for the future.
Chevron Texaco, or Texaco Shell, is the leading competitor to ExxonMobil. Texaco is in the same areas of business as Exxon. Their petroleum products and lubricants are sold in the same markets, stores, and in many cases opposite street corners from each other. The two companies are very similar, but Exxon’s recent petroleum deals in the Middle East and Africa have allowed its stock price to jump ahead for the time being (1). In the industry, the two companies mainly compete for the ability to negotiate for new production. The competition is not made at the pump or at the local auto store. It seems that it’s more important to control oil than it is to sell it quickly. Because oil has so much value and power in the world, the industry is made of semi-friendly companies. Surviving and making as much profit as possible, is more important than trying to put people out of business.
Industry averages and financial ratio reports determine the financial health of an organization. Solvent, efficiency, and profitability are compared by key financial indicators and ratios that measure several companies within the same industry. The publicly traded company chosen by Team A is ExxonMobil. “The largest publicly traded international oil and gas company in the world. ExxonMobil makes products that drive modern transportation, power cities, lubricate industry, and provide petrochemical building blocks that lead to
When determining which company has the most to offer it is necessary to look at each set of numbers from several different views. For instance this paper will cover vertical and horizontal analysis, profitability, solvency, and liquidity ratios. I will be explaining how each set of results play into the decision making of which company would be best to invest in, by comparing both companies numbers in able to collect the necessary data to make a calculated decision.
1. Based on your review of the most recent annual financial statements and notes only, briefly assess the company’s performance for this potential investor. (Analyze based on data from Financial reports P71, 73, 74)
Review of Financial Research Report: This assignment is an analysis of a US publicly-traded company; its common stock could be a prospective investment. The report is due in Week 10, in needs to be at least 5 pages, and it needs to cover the following topics:
The aim of this report is to recommend whether or not a publicly traded company has been is worth investing in. The company chosen in this case is JPMorgan & Chase which is a large financial institution. This report is going to use a financial rational formed by the analysis of various financial metrics.
You would not buy a home, car or other large purchases without researching what product offered you the most for your money. The same is true when investing in a company. Investors do avid research on multiple companies to find what company matches the investors' criteria. In this paper Team C will research both AT&T and Verizon's financial documents. Team C will compare selected ratios, cash flow and make recommendations how both companies can manage cash flow for the future.
ExxonMobil is a United States based transnational oil and gas corporation. Founded on the 30th of November 1999 after the merger between Exxon and Mobil, reuniting the original breakup of standard oil company (Folsom Jr 1998). It is the world’s largest publicly traded oil and gas company by market value and as of 2016, the sixth largest in terms of revenue at $246 million per year (Decarlo 2016) . ExxonMobil’s oil and gas exploration stretches across six continents with
Exxon and Chevron are no doubt some of the leading incorporated oil companies on the globe. Exxon Corp. is the second largest oil firm after Royal Dutch Shell, it is respected for getting the biggest revenue return in 2008 which no company in the U.S. have ever reported before. According to Wilson (2009) Chevron has managed to show a lot of profitability in the market despite the decease in its oil production. It graded as one of firms which made a billion dollars profit within a week in the period of July to September 2008. Regardless of profitability trends set by the two oil firms in the U.S. market, they have been facing financial decline like the rest of the companies in other industries. The two firms are like two sailing ships which are taking longer time to sink. In the last few years, the production capacity of Chevron and Exxon has decreased and their listings on the stock market have become weak. The continuation of construction and drilling which requires billions of dollars in expense of oil production might make them experience a bigger financial crisis (Wilson, 2009).
One of the most reputable resources that Exxon Mobil has today is a strong brand name. Exxon Mobil operates all over the world and is recognized in every part of the world (Datamonitor, 2008). When people all over the world know who a company is, what they do, and where they are located, the company gains a unique competitive advantage over
Hill Country Snack Foods Company manufactures, markets, and distributes snack foods and frozen treats throughout the United States. Hill Country is overall well performed company. Sales, Net Income, ROE and ROA had increased at a steady rate. Company mainly focused on maximizing the shareholder value by the CEO and other management’s managerial philosophy. Currently, Hill Country uses a risk adverse strategy to choose their business or project. Hill Country’s industry is high competitive but it kept going well with cost efficiency and
Ask employees how they feel about the culture and what would like to see for a change if any.
This report consists of financial analysis of Exxon Mobil Corporation and it is based on the company annual report for the fiscal year ended December 31, 2006, on the company’s official documents placed at their website and on other appropriate sources. For convenience and simplicity, in this report the terms ExxonMobil, Exxon, Esso and Mobil, as well as terms like Corporation, Company, their and its, are sometimes used as abbreviated references to specific affiliates or groups of affiliates.