In this paper I will demonstrate the use of financial data reported in SEC’s Edgar database and data reported by Finance.Yahoo.com (Figure 2a and 2b) to access the risk and return while accessing EMCOR Group Inc. stock performance and compare the performance of EMCOR with the S&P 500.
EMCOR Group Inc.
EMCOR Group stock prices have fluctuated greatly over the last ten years, the lowest closing stock price occurred in February, 2009 at a rate of $15.41, the highest recorded closing for EMCOR stock occurred in October, 2015 at $50.40. (Table 1) EMCOR has been a publically offered stock since 1994, the year they were founded. EMCOR began paying dividends in January of 1997 and experienced its first stock split in February of 2006 and again in July of 2007. (Figure 1)
Stock and Market Risk and Return
EMCOR has in the last ten years had an average return of 14%, which is significantly higher than the average stock return of 6.9% for the S&P 500.The standard deviation for EMCOR was 24.3%, while the S&P 500 was 18.6%. EMCOR’s standard deviation is in line with publicly traded firms which are typically 20% to 30%. (Brigham & Houston, 2016, pp. 267-268) A lower standard of deviation is generally preferred when investments are expected to generate similar returns, as the stock with a lower standard of deviation is thought to be less risky. However, EMCOR’s coefficient of variation was 1.74 compared to the S&P 500 with a coefficient of variation of 2.71 during the same time period. This
The chart to the left shows the relative return on equity for EBAY and its competitors. It clearly indicates
CHAPTER 1 ................................................................................................................................................... 2 1Bank Statement ........................................................................................................................................... 3 PART 2 .......................................................................................................................................................... 4 1. Define GAAP, the structure
An individual stock's diversifiable risk, which is measured by the stock's beta, can be lowered by adding more stocks to the portfolio in which the stock is held.
But despite all these obstacles, Nucor Corp. still managed to have a five-year sales growth average of 23%, which is 11 percentage points higher than the nearest fast-growing competitor. The company even had a 5-year ROE average growth of 18% which is more than double than the industry average while maintaining a healthy financial condition having 7% debt to capital percentage,
This company experienced an all-time high in March of 2011 when its close price hit an astounding 93.01 but then dropped by nearly 20 three months later when it closed at 76.95 and then 55.44 in September of that same year. They currently hold a return on equity of 9.61% and a return on assets of 5.24%. The industry that this company is in, oil and gas industry, has seen enormous advances in technology and this has helped toward assisting companies in producing more oil and gas. These technology advancements have allowed them to more accurately find and produce resources in order to maximize profit for the companies. Although the technology efficiency is on the rise, trying to maintain a fresh and talented workforce within the industry is an area that is struggling. Another factor hurting this industry is the decrease in activity and transactions, which took a huge plummet in 2013 compared to 2012. Despite these setbacks, the oil and gas business still maintains to be dynamic due to how critical the resources are to the daily lives of everyone in the world.
The accounting system we use today started in Venice in renaissance period over 520 years ago. The trade business increased hugely during this time and all the financial recordings had to be written down to help people see how their business is doing. During that time in 1494 the first book about was published in accounting by Luca Paciolli and was called “The Collected Knowledge of Arithmetic, Geometry, Proportion and Proportionality”. He was called “The father of Accounting” and most of his described principles have been used up until this day.
The standard deviation provides an estimation of how far above or below the expected value the stock will be compared to the expected return, and the beta is the contribution of the stock to risk to a portfolio. In comparing the beta and standard deviation for the firms, we see correlation in some of the findings. CPB has the lowest standard deviation and a low beta from our calculations suggesting that the stock is
Nano-caps are worth less than $50 million. The rate per stock may be less compared to a penny or as much as $5.
Methodology: To prepare this report, the staff of EC=2 gathered most of the information from the Internet, especially the companies' Web pages. In addition, the staff obtained annual reports from the companies and data from both the NYSE and NASDAQ
Financial data from past periods of a company, provides a perspective for future outcomes. Investors give proper attention to different ratios. In this report I am analyzing the financial position and financial performance of AT & T, a US. Telecommunication Company. The objective and conclusion of this analysis will be, if is either good or not to invest in the company.
B) that is created when fair value accounting is adopted but is not subsequently adjusted.
Total assets at the end of its most recent annual reporting period? Why is this important?
The following paper will compare the five-year performance of two apparel manufacturers utilizing the DuPont Framework and Return on Equity. Then a three- year analysis of common-size income statements will be undertaken to explain changes in income and expenses within each company. Jones Apparel Group (JNY) and Liz Claiborne (LIZ) are the industry leaders in the manufacturing of better clothing, footwear, fragrances, and costume jewelry, and the subject of this analysis.
As indicated by the case study S&P 500 index was use as a measure of the total return for the stock market. Our standard deviation of the total return was used as a one measure of the risk of an individual stock. Also betas for individual stocks are determined by simple linear regression. The variables were: total return for the stock as the dependent variable and independent variable is the total return for the stock. Since the descriptive statistics were a lot, only the necessary data was selected (below table.)
Financial Statements basically show the historical performance or record of the company at some previous point of time. By the time when financial statements are made public, changes are many economical areas such as market conditions, currency exchange rate and inflations can change the values of assets and liabilities. In this case there often exist discrepancies between book value of assets and their market values.