Fin433 Report

Table of Contents
Acknowledgement & Introduction.......................................................................................................... 2

Analyzing the Companies........................................................................................................................ 3
AmBev ................................................................................................................................................. 3
American Eagle Outfitters .................................................................................................................... 5
Avon Products Inc. .............................................................................................................................. 7
Corning Inc. ........................................................................................................................................ 9
General Electric Co ............................................................................................................................ 11
The Kroger Co .................................................................................................................................... 13
NRG Energy Inc. ................................................................................................................................. 15
Oracle Corp. ...................................................................................................................................... 17
Petrobras........................................................................................................................................... 19
Pfizer Inc............................................................................................................................................ 21
Vale SA (Mining Company)................................................................................................................. 23
Xerox Corporation ............................................................................................................................. 25
Ranking. ............................................................................................................................. 27
Conclusion............................................................................................................................................. 30
References ............................................................................................................................................ 30
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Acknowledgement:
We would like to acknowledge to our honorable course lecturer, Mr. Abdullah Al
Mamun, faculty member of school of Business in North South University for
giving us the Opportunity to work on this project. His valuable suggestion,
successful Guidelines and helpful advice throughout the project helped a lot to
complete this project. At last once again we like to praise those persons whoever
comprehends this project with the name of Almighty.
Introduction
In this assignment we were instructed to do qualitative and quantitative analysis of
12 companies from New York Stock Exchange (NYSE). We were also asked to
make a ranking among the selected companies. For our project we have selected
AmBev ADR (ABEV), American Eagle Outfitters (AEO), Avon Products (AVP),
Corning Inc. General Electric (GE), Kroger (KR), NRG Energy (NRG), Oracle
(ORCL), Petroleo Brasileiro ADR (PBR), Pfizer (PFE), ADR (VALE),Xerox
(XRX). We have worked on few ratios to analysis the companies.
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Analyzing the Companies
AmBev
AmBev is a Brazilian brewing company. It is the biggest brewery in Latin America and the fifth
in the world. It was founded on July 1, 1999, with the merger of two breweries, Brahma and
Antarctica. The merger was approved by the Brazilian Board of Directors of Economic Defense
(CADE) on March 30, 2000.Ambev operates in 14 countries in the Americas. As the largest
PepsiCo bottler outside United States, it sells and distributes PepsiCo products in Brazil and
other Latin American countries, includes Pepsi, Lipton Ice Tea and Gatorade by agreement of
franchising.
Ratios
Current Ratio
Quick Ratio
Price Earnings Ratio
Earnings Per Share (EPS)
Return on Equity (ROE)
Return on Asset (ROA)
Book Value Per Share
Dividend Yield %
Debt To Equity Ratio
Profit Margin %
Data
0.95
0.79
17.85
0.76
28.37
17.14%
1.01
0.73%.
0.064
28.59%
Quantitative Analysis:
The price earnings ratio of AmBev is $17.85 which means that an investor is willing to pay
$17.85for $1 of current earnings. The EPS of AmBev is $0.76; the interpretation is that the
investors are getting $0.76 for investing $1. A lower EPS is the sign of lower earnings; therefore
it shows a poor financial position.
The profit margin of AmBev is 28.59%; which investors can check out from a profit margin
analysis in an income statement that determine a net profit margin. Profit margin of 28.59%
indicates that the company has $0.2859for every $1 of sale. The return on assets is 17.14%which
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shows the relative change in total asset due to the relative change in net profit. The higher the
ROA number, the better, because the company is earning more money on less investment
The return on equity is 28.37% indicating that the company is earning $0.2837 for every $1 of
money of shareholders' investments. Usually a high debt/equity ratio means that a company is
financing its growth with debt. From a pure risk perspective, lower ratios (0.4 or lower) are
considered better debt ratios. Here the company's ratio is only 0.064 indicating that the company
is financing it's almost all of its assets through equity.
The dividend yield ratio is 0.73%which means that AmBev share is paying dividend of $0.073
for every $1 investment. The book value per share is 1.01which indicates the dollar value
remaining for common shareholders after all assets are liquidated and all debtors are paid.
Qualitative Analysis:
World Cup 2014 had a great impact on AmBev profit margin. On Thursday, 30th July, the
Company reported an increase in its net profit in the second quarter of 2014 as its sales were
fueled by the World Cup in June. The brewer of such beer brands as Skol and Brahma posted a
second-quarter net profit of 2.22 billion reais ($988.7 million), up from 1.9 billion reais ($846.2
million) in the year-ago period. As the greatest show in the earth took place on Brzail, the soccer
fans from around the world celebrated the event with their loved beer brands in their homes, bars
and thousands of programmers organized around the country. The revenue increase so much that
the company said in a statement that June 11 was "the best-selling day in our history, " with
more than 400,000 hectoliters (10.6 million gallons) of beer sold in Brazil.The company's
revenue increased 9.2% to 8.17 billion reais in the second quarter. Commercial expenses totaled
2.34 billion reais in the period, up from 2.1 billion reais a year earlier. AmBev reported that
earnings before interest, taxes, depreciation and amortization totaled 3.32 billion reais in the
second quarter, up from 3.23 billion reais in the second quarter of 2013.
For this reason AmBev share price increased. Because their revenue was increased in second
quarter at 9.2%, so the stock holder hopes for dividend in that year. So demand was high. It is the
because of increasing the share price of AmBev.
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American Eagle Outfitters

American Eagle Outfitters is an American clothing and accessories retailer, headquartered in the
Southside Works Neighborhood of Pittsburgh, Pennsylvania. It was founded in 1977 by brothers
Jerry and Mark Silverman as a subsidiary of Retail Ventures, Inc., a company which also owned
and operated Silverman's Menswear. The Silverman's sold their ownership interests in 1991 to
Jacob Price of Knoxville. American Eagle Outfitters is the parent company of Aerie and
formerly of 77 kids.
Ratios
Current Ratio
Quick Ratio
Earnings Per Share
Return on Equity (ROE)
Return on Asset (ROA)
Dividend Yield
Debt to Equity Ratio
Profit Margin %
Data
1.70
0.61
21.2
0.43
4.81
4.81
6.19
3.19%
0.00
0.73%
The price earnings ratio for American Eagle Outfitters is $21.20 which means that an investor is
willing to pay $21.20for $1 of current earnings. The EPS of American Eagle Outfitters is $0.43;
the interpretation is that the investors are getting $0.43 for investing $1. A lower EPS is the sign
of lower earnings; therefore it indicates a very poor financial position.
The profit margin of American Eagle Outfitters is 0.73%; which investors can check out from a
profit margin analysis in an income statement that determines a net profit margin. Profit margin
of 0.73% indicates that the company has .0073 for every $1 of sale which is very bad for any
company. The return on assets is 4.81which shows the relative change in total asset due to the
relative change in net profit. The higher the ROA number, the better, because the company is
earning more money on less investment.
Return on equity is 4.81% indicates that a company is earning $0.0481 for every $1 of money
shareholders have invested. Usually a high debt/equity ratio means that a company is financing
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its growth with debt. From a pure risk perspective, lower ratios (0.4 or lower) are considered
better debt ratios. Here the company's ratio is only 0.00which is the best as the company is
financing it's all of its assets through its equity.
The dividend yield ratio is 3.19%which means that American Eagle Outfitters share is paying
dividend of $0.0319 for every $1 investment. The book value per share is $6.19 which indicates
the dollar value remaining for common shareholders after all assets are liquidated and all debtors
are paid.
Shares of teen apparel retailer American Eagle Outfitters fell by more than 5% after its Q1 fiscal
2014 earnings per share missed the consensus estimates and it issued a conservative guidance for
the first quarter. The retailers earnings per share for the first quarter remained low at 5 cents,
which was well below the expected figure of 26 cents. Also, its revenues declined by almost 7%
to $1.04 billion due to weak consumer spending and low store traffic on account of extreme cold.
For the entire year, American Eagles revenues fell by 5% and its operating income stumbled by
47%. Throughout fiscal 2013, the company struggled for growth due to the sluggish economic
environment, low brand loyalty, weak mall traffic, missed fashion calls and fierce competition
from fast fashion brands such as Forever 21 and H&M and its impact is still on 2014.
While American eagle expects to continue facing challenges in the first quarter due to extreme
weather, we believe that its growth can pick up gradually. The retailers efforts to improve its
brand image can yield fruitful results as it has been one of the most popular teen apparel brands
in the past. As the company is strengthening its omni-channel platform to provide a seamless
shopping experience, its store and web traffic should improve going forward. Our price estimate
for American Eagle Outfitters stands at $18.88, implying a premium of about 45% to the market
price. However, we are in the process of updating our model in light of the recent earnings
release.
In first quarter of the year, company faces lots of challenges which decline its stock price but that
dont have any negative effect on their future stock price. Because it pick up and improve their
condition. It can assume that their share price will increase in next fiscal year.
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Avon Products Inc.

Avon Products, Inc, known as Avon, is an American international manufacturer and direct
selling company in beauty, household, and personal care categories. Avon had annual sales of
$10.0 billion worldwide in 2013.It is the fifth-largest beauty company and second largest direct
selling enterprise in the world, with 6.4 million representatives.
Ratios
Current Ratio
Quick Ratio
Earnings Per Share
Return on Equity (ROE)%
Return on Asset (ROA)%
Dividend Yield
Profit Margin
Data
1.45
1.05
26.30
0.88
55.52
6.48
2.09
5.50%
.74
-4.17%
The price earnings ratio for Avon Products Inc. is $26.30; the interpretation is that an investor is
willing to pay $26.30for $1 of current earnings. The EPS of Avon Products Inc. is -$0.88; the
interpretation is that the investors are getting -$0.88 for investing $1. It is very low. The investor
cannot get any profit from the investment.
The profit margin of Avon Products Inc. is -4.17% which investors can easily see from a
complete profit margin analysis that there is no income from the profit. Because of company's
loss the return on assets is -6.48%which shows the relative change in total asset due to the
relative change in net profit.
The return on equity is -55.52% indicates that a company is earning -$0.5552 for every $1 of
money shareholders has invested. The dividend yield ratio is 5.50%which means that Avon
Products Inc. share is paying dividend of $0.0550 for every $1 investment. The book value per
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share is $2.09 which indicates the dollar value remaining for common shareholders after all
assets are liquidated and all debtors are paid.
On December 2014, Avon Products Inc. entered into agreements with the U.S. Department of
Justice (DOJ) and the Securities and Exchange Commission (SEC) related to the previously
disclosed Foreign Corrupt Practices Act (FCPA) investigations. Terms of agreements are in line
with the expected terms the company previously reported. Agreements include aggregate
payments of $135 million to two U.S. govt. agencies, with $68 million in fines payable to the
DOJ and $67 million in disgorgement and prejudgment interest payable to SEC, in connection
with charges it violated books and records and internal controls provisions of FCPA. Under a
deferred prosecution agreement (DPA), which received court approval today, the DOJ will defer
criminal prosecution of the company for a period of three years in connection with the alleged
violations of the FCPA.
It seems a positive agreement for the company. It will increase their reputation and goodwill.
That will increase their stock demand and stock price as well.
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Corning Inc.
Corning Incorporated is an American manufacturer of glass, ceramics, and related materials,
primarily for industrial and scientific applications. The company was known as Corning Glass
Works until 1989, when it changed its name to Corning IncorporatedIn1998, Corning divested
itself of its consumer lines of Corning Ware and Corelle tableware and Pyrex cookware selling
them to World Kitchen, but still holds an interest of about 8%. As of 2014, Corning had five
major business sectors: Display Technologies, Environmental Technologies, Life Sciences,
Optical Communications, and Specialty Materials.
Ratios
Current Ratio
Quick Ratio
Earnings Per Share
Dividend Yield
Profit Margin
Data
4.41
3.84
10.98
1.73
12.23
8.45
15.29
2.71%
0.16
25.24%
The price earnings ratio for Corning Inc is $10.98 which means that an investor is willing to pay
$10.98for $1 of current earnings. The EPS of Corning Inc is $1.73; the interpretation is that the
investors are getting $1.73 for investing $1. A higher EPS is the sign of higer earnings; therefore
it shows a good financial position.
The profit margin of Corning Incis 25.24%which investors can check out from a profit margin
analysis in an income statement that determine a net profit margin. Profit margin of 25.24%
means a company has $0.2524 for every $1 of sale. The return on assets is 8.45%which shows
the relative change in total asset due to the relative change in net profit. The higher the ROA
number, the better, because the company is earning more money on less investment
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The return on equity is 12.23% indicates that a company is earning $0.1223 for every $1 of
money shareholders have invested. Usually a high debt/equity ratio means that a company is
considered better debt ratios. Here the company's ratio is only 0.16 which is not that bad.
The dividend yield ratio is 2.71%which means that Corning Inc. share is paying dividend of
$0.0271 for every $1 investment. The book value per share is $15.29 which indicates the dollar
value remaining for common shareholders after all assets are liquidated and all debtors are paid.
Shares of Corning Incorporated (NYSE:GLW) rose by 5.86% in the past week and 7.84% for the
last 4 weeks. In the past week, the shares have outperformed the S&P 500 by 2.51% and the
outperformance increases to 7.12% for the last 4 weeks.
Corning Incorporated (NYSE:GLW) witnessed a decline in the market cap on Friday as its
shares dropped 0.05% or 0.01 points. After the session commenced at $18.99, the stock reached
the higher end at $19.1099 while it hit a low of $18.93. With the volume soaring to 9,289,798
shares, the last trade was called at $18.98. The company has a 52-week high of $25.16. The
company has a market cap of $22,453 million and there are 1,182,984,480 shares in outstanding.
The 52-week low of the share price is $15.42.On the other hand company has total of 35,820
shares been purchased at a price of $16.67 per share. The information is based on open market
trades at the market prices. Option exercises are not covered. Currently the company Insiders
own 0.61% of Corning Incorporated shares according to the proxy statements. Institutional
Investors own 79.97% of Corning Incorporated shares.
Corning Incorporated (Corning), is a global, technology-based corporation. The Company
operates in five segments: Display Technologies, Telecommunications, Environmental
Technologies, Specialty Materials and Life Sciences. During the year ended December 31, 2011,
Corning launched Corning Lotus Glass, an environmentally friendly, display glass developed to
enable technologies, including organic light-emitting diode (OLED) displays and next generation
liquid crystal displays (LCD). Corning Lotus Glass helps support the demanding manufacturing
processes of both OLED and liquid crystal displays for portable devices, such as smart phones,
tablets, and notebook computers. During the year ended December 31, 2011, Corning introduced
Corning Gorilla Glass 2, the next generation in its Corning Gorilla Glass suite of products. In
May 2014, Mitsui Chemicals Inc. announced the acquisition of Corning Incs Sun Sensors
operations.
According to the news above, we can see company is rapidly increasing its operational activities
and process. And that has a positive effect on the company. It seems that they have huge chance
to increase their stock price in future.
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General Electric Co
General Electric (GE) is an American multinational conglomerate corporation incorporated in
New York. As of 2015, the company operates through the following segments: Appliances,
Power and Water, Oil and Gas, Energy Management, Aviation, Healthcare, Transportation and
Capital which cater to the needs of Home Appliances, Financial services, Medical device, Life
Sciences, Pharmaceutical, Automotive, Software Development and Engineering industries.
Ratios
Current Ratio
Quick Ratio
Earnings Per Share
Dividend Yield
Profit Margin%
Data
2.97
2.82
19.52
1.50
11.78
2.33
13.42
3.04%
2.38
10.11%
The price earnings ratio for General Electric Co is $19.52which means that an investor is willing
to pay $19.52for $1 of current earnings. The EPS of General Electric Co is $1.50; the
interpretation is that the investors are getting $1.50 for investing $1.
The profit margin of General Electric Co is 10.11%which investors can check out from a profit
margin analysis in an income statement that determine a net profit margin. Profit margin of
10.11%means a company has $0.1011for every $1 of sale. The return on assets is 2.33%which
shows the relative change in total asset due to the relative change in net profit. The higher the
ROA number, the better, because the company is earning more money on less investment
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financing its growth with debt. Here the company's ratio is only 2.38 which is not that good at
all.
The dividend yield ratio is 3.04%which means that General Electric Co share is paying dividend
of $0.0304 for every $1 investment. The book value per share is $13.42 which indicates the
dollar value remaining for common shareholders after all assets are liquidated and all debtors are
paid.
Investors are pulling money out of General Electric Company at a rapid pace as -299.11 million
of U.S. dollars were pulled out of it, according to data provided by the Wall Street Journal. A
stock can only have a downtick if enough investors move away from buying it at a given point in
time. For this company, $169.96 million shares traded on an uptick (meaning buyers lifted an
offer) and $469.06 million traded on downtick trades (sellers). The up/down ratio, the value of
uptick trades relative to the value of downtick trades, came to 0.36. After the end of last trading
session, block money flow appeared at $-268.19 million with overall inflows reaching $33.37
million and reported an outflow of $301.56 million. In that case, the up/down ratio was at 0.11.
According to the news above, company is continuously not doing good or bad and that is not
good for companys stock. It can be a reason for declining stock price.
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The Kroger Co
The Kroger Company is an American retailer founded by Bernard Kroger in 1883 in Cincinnati,
Ohio. It is the country's largest supermarket chain by revenue ($103,033,000,000 for 2014),]
second-largest general retailer (behind Walmart), and twenty-third largest company. Kroger is
also the fifth largest retailer in the world. As of February 2013, Kroger operates, either directly
or through its subsidiaries, 2,774 stores. .
Ratios
Current Ratio
Quick Ratio
Earnings Per Share
Dividend Yield
Profit Margin%
Data
0.78
0.28
19.35
1.45
31.68
5.63
4.82
0.98%
2.22
1.54%
The price earnings ratio for The Kroger Company is $19.75which means that an investor is
willing to pay $19.75for $1 of current earnings. The EPS of The Kroger Company is $1.45; the
interpretation is that the investors are getting $1.45 for investing $1. A lower EPS is the sign of
lower earnings but $1.45 is not bad.
The profit margin of The Kroger Company is 1.54%which investors can check out from a profit
margin analysis in an income statement that determines a net profit margin. Profit margin of
1.54%means the company has $0.0154 for every $1 of sale. The return on assets is 5.63%which
shows the relative change in total asset due to the relative change in net profit. It shows how
much of each dollar of sales, a company actually keeps in earnings.
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money shareholders have invested. Generally a high debt/equity ratio means that a company is
financing its growth with debt. Here the number is 2.22 which is not that good after all. The
dividend yield ratio is 0.98% which means that The Kroger Company share is paying dividend of
$0.0098 for every $1 investment. The book value per share is $4.82 which indicates the dollar
Kroger Co (NYSE:KR) today reported net earnings of $428 million, or $0.43 per diluted share,
and identical supermarket sales growth, without fuel, of 5.4% in the third quarter of fiscal
2015.Net earnings in the same period last year were $362 million, or $0.36 per diluted share,
including the benefit of certain tax items. Excluding this, Krogers adjusted net earnings were
$345 million, or $0.35 per diluted share, for the third quarter of fiscal 2014.
As a result of lower retail fuel prices, total sales increased 0.4% to $25.1 billion in the third
quarter compared to $25.0 billion for the same period last year. Total sales, excluding fuel,
increased 5.5% in the third quarter over the same period last year. Kroger recorded a $9 million
LIFO charge during the third quarter compared to an $85 million LIFO charge in the same
quarter last year.
Kroger Co (NYSE:KR) reported the gain of 4.45% and is at $39.81 with the total traded volume
of 5.28 million shares. Its market capitalization is $37.13B. Its 52-week range is $ 27.32
$39.91.
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NRG Energy Inc.

NRG Energy, Inc. is a large American energy company, dual-headquartered in West Windsor
Township, New Jersey, and Houston, Texas. It was formerly the wholesale arm of Xcel Energy,
and was spun off in bankruptcy in 2004.
Ratios
Current Ratio
Quick Ratio
Earnings Per Share
Dividend Yield
Profit Margin%
Data
1.77
1.51
131.46
0.23
0.81
0.21
29.52
6.15%
1.99
0.56%
The price earnings ratio for NRG Energy Inc. is $131.46which means that an investor is willing
to pay $131.46 for $1 of current earnings, which is not good for any investor. The EPS of NRG
Energy Inc. is $0.23; the interpretation is that the investors are getting $0.23 for investing $1. A
lower EPS is the sign of lower earnings; therefore it shows a poor financial position.
The profit margin of NRG Energy Inc. is was 0.56% which investors can check out from a profit
margin analysis in an income statement that determines a net profit margin. Profit margin of
0.56%means the company has $0.0056 for every $1 of sale. The return on assets is 0.21%which
The return on equity is 0.81% indicates that a company is earning $0.0081for every $1 of money
its growth with debt. Here the company's ratio is 1.99 which is not good at all.
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The dividend yield ratio is 6.15% which means that NRG Energy Inc. share is paying dividend of
$0.0615 for every $1 investment. The book value per share is $29.52which indicates the dollar
NRG Energy Inc. (NYSE:NRG) has today announced that they have sold two of their power
plants for $138 million. The 525 MW Seward plant and the 352 MW Shelby County plant have
been purchased by two separate companies. The news has sent the stock tumbling.
An affiliate of Rockland Capital LLC has agreed to acquire the Shelby County power plant while
Seward Generation LLC will acquire the other facility. The move is part of a larger restricting
plan that NRG Energy Inc. (NYSE:NRG) has established in order to cut costs by $150 million in
2016.
Operating a diverse generation fleet is a key component of NRGs continued success in every
region in which we operate, Mauricio Gutierrez, COO of NRG, explained. As part of our asset
optimization initiative, weve identified a few specific facilities that would be better suited in
other hands in markets where we can transact at good value while avoiding future capital
expenditures.
The stock is down 12.55% or $1.55 following the news, hitting $10.8 per share. About 11.52
million shares traded hands or 64.57% up from the average. NRG has declined 51.87% since
April 29, 2015 and is down trending. It has underperformed the S&P500 by 51.67%
This news definitely decries their share price. This news decries their stock in 12.55% and down
the share price $10.8 per share. So this is shocking news for the shareholders. They didnt accept
any dividend. So shareholders might lose their interest of this company share
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Oracle Corp.
The Oracle Corporation is an American global computer technology corporation, headquartered
in Redwood City, California. The company primarily specializes in developing and marketing
computer hardware systems and enterprise software products particularly its own brands of
database management systems. In 2011 Oracle was the second-largest software maker by
revenue, after Microsoft.
Ratios
Current Ratio
Quick Ratio
Earnings Per Share
Dividend Yield
Profit Margin%
Data
3.35
3.12
17.60
2.38
23.94
12.73
10.02
1.48%
0.60
27.81%
The price earnings ratio for Oracle Corporation is $17.60; the interpretation is that an investor is
willing to pay $17.60for $1 of current earnings. The EPS of Oracle Corporation is $2.38; the
The profit margin of Oracle Corporation is 27.81%which investors can check out from a profit
27.81%means a company has $0.2781 for every $1 of sale. The return on assets is 12.73%which
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considered better debt ratios. Here the company's ratio is only 0.60indicating that the company is
financing it's almost 60% of its assets through debt which is not good.
The dividend yield ratio is 1.48% which means that Oracle Corporation share is paying dividend
of $0.0148 for every $1 investment. The book value per share is $10.02which indicates the dollar
Oracle Corporation is a provider of enterprise software and computer hardware products and
services. The Company provides cloud services as well as software and hardware products to
other cloud service providers, both public and private. The Companys software business
consists of two segments: new software licenses and cloud software subscriptions and software
license updates and product support. The Companys hardware systems business consists of two
operating segments: hardware systems products and hardware systems support. The Companys
services business consists of the remainder of its operating segments and offers consulting
services, managed cloud services and education services. Effective February 6, 2014, Oracle
Corp acquired the entire share capital of Responsys Inc. Effective June 2, 2014; Oracle Corp
acquired Green Bytes Inc. a Providence-based developer of software. In September 2014, Oracle
Corp completes acquisition of MICROS Systems.
Last year technology of software and hardware system was improved in a remarkable sing. All
the company follows and develops their technology in a nanotechnology system. And Oracle
Company plays a great role in this sector. So shareholder hope that share price of the company
would increase because the company is moving day by day.
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Petrobras
Petrobras was founded in 1953. While the company ceased to be Brazil's legal monopolist in the oil industry in
1997, it remains a significant oil producer, with output of more than 2 million barrels (320,000 m3) of oil
equivalent per day. The company owns oil refineries, oil tankers, and is a major distributor of oil products.
Petrobras is a world leader in development of advanced technology from deep-water and ultra-deep water oil
production. In September 2010,Petrobras conducted the largest share sale in history, when US$72.8 billion
worth of shares in the company were sold on the BM&F Bovespa stock exchange. Upon the sale, Petrobras
immediately became the fourth-largest company in the world measured by market capitalization
Ratios
Current Ratio
Quick Ratio
Earnings Per Share
Dividend Yield
Profit Margin%
Data
1.78
1.37
9.56
1.12
5.56
2.37
25.11
0.00%
0.96
-6.04%
The price earnings ratio for Petrobras is $9.56which means that an investor is willing to pay
$9.56for $1 of current earnings. The EPS of Petrobras is -$1.12;
The profit margin of Petrobras is -6.04%.which means company has no profit at all. The return on
assets is -2.37%which shows the relative change in total asset due to the relative change in net
profit.
The return on equity is -5.56% indicates that a company cannot earn money from the
shareholders have invested. The dividend yield ratio is 0.00%which means that Petrobras does not
have any dividend payment. The book value per share is $25.11which indicates the dollar value
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Usually a high debt/equity ratio means that a company is financing it's growth with debt. From a
pure risk perspective, lower ratios (0.4 or lower) are considered better debt ratios. Here the
company's ratio is only 0.96 indicating that the company is financing it's almost all of its assets
through debt which is very bad for any kind of companies.
After a dramatic 10-hour boardroom showdown, the number would be included in a note to
Petrobrass overdue third-quarter earnings but it would be costly to Foster. On Feb. 6, Rousseff
replaced her with Aldemir Bendine, CEO of state-run Banco do Brasil SA -- a government
executive popular with Rousseffs leftist Workers Party.
The appointment sent the shares of the company formally known as PetroleoBrasileiro SA down
6.9 percent that day. To critics, Rousseffs actions show she is caught between her populist
leanings to continue to run Petrobras as an energy adjunct of the state and the need to right the
badly damaged company as a key component in reviving Brazils faltering economy. Some
doubt Petrobras can reach its ultimate potential without resolution of this conflict.
Look at all the government interference -- the market was expecting a more independent
management to restore credibility, said Marcos Duarte, a portfolio manager at Rio de Janierobased Polo Capital Gestao de Recursos Ltda. His appointment didnt help.
For the government interference their stock sell was decreases 6.9%. This is really shocking
news for the company as well as shareholders. Shareholders expectation did not fulfill for the
reason of government interference in Brazil. So there is a high chance to decrease the price of the
share.
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Pfizer Inc.
Pfizer Incis an American multinational pharmaceutical corporation headquartered in New York
City, with its research headquarters in Groton, Connecticut. It is among the world's largest
pharmaceutical companies. Pfizer is listed on the New York Stock Exchange, and its shares have
been a component of the Dow Jones Industrial Average since 2004.
Ratios
Current Ratio
Quick Ratio
Earnings Per Share
Dividend Yield
Profit Margin%
Data
2.67
2.41
21.89
1.42
12.38
5.35
12.39
3.43%
0.49
18.56%
The price earnings ratio for Pfizer Inc. is $21.89which means that an investor is willing to pay
$21.89for $1 of current earnings. The EPS of Pfizer Inc. is $1.42; the interpretation is that the
investors are getting $1.42 for investing $1.
The profit margin of Pfizer Inc. is 18.56%which investors can check out from a profit margin
analysis in an income statement that determine a net profit margin. Profit margin of
shows the relative change in total asset due to the relative change in net profit.
The return on equity is 12.38% indicates that a company is earning $0.1238for every $1 of
money shareholders have invested. Generally a high debt/equity ratio means that a company is
21 | P a g e
considered better debt ratios. Here the company's ratio is only 0.49 indicating that the company
is financing it's half of assets through its equity which is not bad but not good at all.
The dividend yield ratio is 3.43% which means that Pfizer Inc. share is paying dividend of
$0.0343 for every $1 investment. The book value per share is $12.39which indicates the dollar
Pfizer Inc is currently valued at $202.41 billion. The company has 6.17 billion shares
outstanding and 74.10% shares of the company were owned by institutional investors. The
company has 4.22 value in price to sale ratio while price to book ratio was recorded as 3.03. The
company exchanged hands with 42.91 million shares as compared to its average daily volume of
39.63 million shares. It beta stands at 0.90. The mean estimate for the short term price target
for Pfizer Inc. stands at $40.47 according to 15 Analysts. The higher price target estimate for the
stock has been calculated at $52.00 while the lower price target estimate is at $34.00. Pfizer Inc.
is a global biopharmaceutical company. The Company is engaged in discovering, developing and
manufacturing of healthcare products. Its products include Lyrica, the Prevnar family of
products, Enbrel, Celebrex, Lipitor, Viagra, Zyvox, Sutent, EpiPen, Toviaz, Tygacil, Rapamune,
Xalkori, Inlyta, Norvasc, BeneFIX, Genotropin and Enbrel, among others.
This company produce biopharmaceutical product. They are discovering, developing and
manufacturing of healthcare product. Though there revenue increased they wont be able to pay
dividend among the shareholders. So for the common shareholders lost their interest of this
share. so demand might be decrease. Then share price might decrease.
22 | P a g e
Vale SA (Mining Company)

Vale SA is Brazilian multinational diversified metals and Mining Corporation and one of the
largest logistics operators in Brazil, in addition to being the third-largest mining company in the
world. Vale is also the largest producer of iron ore, pellets, and second largest of nickel. Vale
also produces manganese, ferroalloys, copper, bauxite, potash, kaolin, alumina and aluminum. In
the electric energy sector, the company participates in consortia and currently operates nine
hydroelectric plants.
Ratios
Current Ratio
Quick Ratio
Earnings Per Share
Dividend Yield
Profit Margin%
Data
2.21
1.91
3.98
0.13
1.81
0.55
7.57
2.99%
0.49
1.16%
The price earnings ratio for Vale SA is $3.98which means that an investor is willing to pay
$3.98for $1 of current earnings. The EPS of Vale SA is $0.13; the interpretation is that the
investors are getting $0.13 for investing $1.
The profit margin of Vale SA is 1.16%which investors can easily see from a complete profit
margin analysis that there are several income and expense operating elements in an income
statement that determine a net profit margin. Profit margin of 1.16%means a company has
$0.0116 for every $1 of sale. The return on assets is 0.55%which shows the relative change in
total asset due to the relative change in net profit.
23 | P a g e
shareholders have invested.
Generally a high debt/equity ratio means that a company is financing its growth with debt. From
a pure risk perspective, lower ratios (0.4 or lower) are considered better debt ratios. Here the
company's ratio is only 0.49 indicating that the company is financing it's half of assets through its
equity which is not bad but not good at all.
The dividend yield ratio is 2.99% which means that Vale SA share is paying dividend of $0.0299
for every $1 investment. The book value per share is $7.57which indicates the dollar value
VALE has market value of $16.12 billion. The stock has 3.19 billion shares outstanding while
18.70% shares of the company were owned by institutional investors. In the profitability
analysis, the company has gross profit margin of 22.70% while net profit margin was -19.10%.
Beta value of the company was 1.39; beta is used to measure riskiness of the security. The mean
estimate for the short term price target for Vale SA (ADR) (NYSE:VALE) stands at $5.75
according to 28 Analysts. The higher price target estimate for the stock has been calculated at
$10.00 while the lower price target estimate is at $3.00 Vale SA (ADR) (NYSE:VALE) is a
metals and mining company. The Company is also a producer of iron ore and iron ore pellets,
and nickel. The Company also produces manganese ore, ferroalloys, metallurgical and thermal
coal, copper, platinum group metals (PGMs), gold, silver, cobalt, potash, phosphates and other
fertilizer nutrients
Share price would decreases. The company produced gold, silver etc. The price of gold is
decreasing day by day in recent year. Share holder must think that share price would decrease
because gold price was decrease and revenue of the company also decreases.
24 | P a g e
Xerox Corporation
Xerox Corporation is a U.S. based global corporation that sells business services and document
technology products to businesses and governments of all sizes. Xerox is headquartered in
Norwalk, Connecticut .On September 28, 2009; Xerox announced the intended acquisition of
Affiliated Computer Services for $6.4 billion. The deal closed on February 8, 2010. As a large
developed company, it is consistently placed in the list of Fortune 500 companies.
Ratios
Current Ratio
Quick Ratio
Earnings Per Share
Dividend Yield
Profit Margin%
Data
1.46
1.31
17.17
0.81
8.58
3.42
10.57
2.61%
0.66
4.98%
The price earnings ratio for Xerox Corporation is $17.17which means that an investor is willing
to pay $17.17for $1 of current earnings. The EPS of Xerox Corporation is $0.81; the
The profit margin of Xerox Corporation is 4.98%which investors can check out from a profit
shows the relative change in total asset due to the relative change in net profit. It shows much of
each dollar of sales, a company actually keeps in earnings.
25 | P a g e
its growth with debt. From a pure risk perspective, lower ratios (0.4 or lower) are considered
better debt ratios. Here the company's ratio is only 0.66 indicating that the company is financing
it's more than half of assets through its debt which is bad.
The dividend yield ratio is 2.61% which means that Xerox Corporation share is paying dividend
of $0.0261 for every $1 investment. The book value per share is $10.57which indicates the dollar
Xerox shareholders have waited a long time to see signs of life in this stock. The past year has
been one of Xerox's best this century, but if the reasons I've highlighted here hold true, 2014
could be only the starting point for a long-term Xerox revival. Stock is perfect, but for many
shareholders, Xerox's turnaround has been the right move at the right time. The world's biggest
tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't
miss a beat: There's a small company that's powering their brand-new gadgets and the coming
revolution in technology. And we think its stock price has nearly unlimited room to run for earlyin-the-know investors.
Xerox introduced a brand new gadgets and the hope that this gadgets will make a revolution in
technology. So the stock holder hopes that those gadgets would increase their revenue. So
demand will increase and the stock price would increase.
26 | P a g e
Ranking
We were asked to make a ranking of selected companies based on the analysis. We have
considers all the ratios, dividend payment, profit earning etc. while making the raking. It was
really a difficult to choose because all the companies are one of the bests of the world; they may
run bad for some time but they have the capability of overcome. a So after analyzing all the
things
we
have
come
up
with
the
ranking
shown
below:
Rank Number
1
2
3
4
5
6
7
8
9
10
11
12
Company Name
Oracle Corp
Corning Inc.
Pfizer Inc.
General Electronics Co
AmBev
Xerox Corporation
Vale SA
American Eagle Outfitters
NRG Energy Inc.
The Kroger Co
Petrobras
Avon Products Inc.
27 | P a g e
Reasons behind our Ranking:

1. Oracle Corp.
Because of its current ratio, quick ratio is good ROE, ROE is also very good. Profit margin is
higher and a lower debt to equity ratio. Have a good dividend payment history. So this is the
safest investment for anyone.
2. Corning Inc.
Just behind the Oracle Corp. Because of its current ratio, quick ratio is good ROE, ROE is also
very good. Profit margin is higher and a lower debt to equity ratio. One of the safest investments.
3. Pfizer Inc.
Because of its current ratio, quick ratio is good ROE, ROE is also very good. Profit margin is in
3rd position and their share price will decrease but this is not a great problem.
4. General Electric Co
Because General Electric Co is a highly reputed company we have selected this one in the 4.
But it also has good current ratio, quick ratio is good ROE, ROE is also good. Profit margin is
not bad. Everyone loves to invest in reputed company as well.
5. AmBev
Good current ratio, quick ratio is. ROE, ROE is also average. Profit margin is not so good and
we hope that their share price will increase in the future. Not a bad investment at all.
6. Xerox Corporation
Though the current ratio is not that good but quick ratio is better. ROE, ROE is also average.
Profit margin is not bad at all and we hope that their share price will increase in the near future
because of good management.
28 | P a g e
7. Vale SA (Mining Company)

Vale is in the number 7 because though it has a good current ratio, quick ratio. ROE, ROE is also
a useful measurement and which not so that catching. Profit margin is average and their share
price may decrease. So it is ranked 7th
8. American Eagle Outfitters

Because, current ratio, quick ratio is not so good ROE, ROE is also in average. Have a good
reputation for their products. Profit margin is in margin position and their share price may
increase
9. NRG Energy Inc.

Because of its bad current ratio, quick ratio it is ranked 9th. We also considered other rations as
well which are also not that good as well. Profit Margin is also not very much. SO we do not
think it is a very good investment for anyone.
10. The Kroger Co

This one could rank average in anywhere but we could not consider this as a safe investment
because of its lower rations compared to other companies.
11. Petrobras
Because of its lower current ratios we ranked the company in the bottom side. The Profit margin
(negative) is also the lowest among the companies. Their share price would decrease which is
not a good sign for any company.
12. Avon Products Inc.

This company is in our first choice before doing the project but we are disappointed to rank this
at the lowest level because of its poor rations among others. Profit margin is in the 2nd lowest
among the companies and the number is also negative.
29 | P a g e
Conclusion
It is to be concluded for this study that, this is a very difficult to make decision about any of the
firms performance and the measurement tools, because all the formulas and functions are applied
to attain an specific requirement of the firm as the part of the firms financial strategy. So, the
other related information will also need to understand the purpose of the firm to use any of the
tools to measure their performance. Finally it could be recommended that, the importance of the
ratio analysis depends on the stakeholders specific need and the situational requirements
References
Official websites for all the firms
Financial Reports and analysis from - http://www.morningstar.com
Ratio definition and understating from - http://www.investopedia.com/
30 | P a g e

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Table of Contents

Acknowledgement & Introduction.......................................................................................................... 2

Analyzing the Companies

American Eagle Outfitters

Avon Products Inc.

NRG Energy Inc.

Vale SA (Mining Company)

Reasons behind our Ranking:

7. Vale SA (Mining Company)

8. American Eagle Outfitters

9. NRG Energy Inc.

10. The Kroger Co

12. Avon Products Inc.

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