Category Archives: Case Studies
Operating Cash Flow has exceeded Net Income in each of the past five years. This positive cash flow is a reliable indication of profitability. Cash flow shows little sign of a weakening trend.
Working Capital Position: The current position of the company has actually improved. There is a stronger ability to convert current assets to cover current liabilities than was the case five years ago.
Loblaw Companies has been trying to navigate its way through some rough retailing waters lately. Canada’s dominant supermarket chain has seen share prices eroded and a shiny image tarnished by a series of poor results. It is
Gross Profit Margin (GPM): After consistently operating at a range of around 7.5% the company slipped to 6 in 2006. The grocery business is known for operating on tight margins so these are not low, however a
Higher operating costs caused by re-structuring cause a 20% drop in share prices.(Mar 2006) Meanwhile CTC stock doubled over 2 ½ years and RONA tripled over 3.
Summary: All indications are that informed investors would consider this an under valued stock.
What ever did happen to financial statement analysis during this market? Health of a company somehow became interpreted as the percentage of market or market share the company possessed. There is not any quantitative, financially correct value
In other themes on this site, we have focused considerable attention upon the importance of proper financial statement analysis and share price analysis to aid prospective investors in their decision making processes. There are many examples of
Nortel experienced much of its corporate expansion and nearly all its share price growth during the time of an exuberant bull market. This was a period in time when companies engaged in the business of new communications
