- Income statement analyses of the companies have different ratios in total, which predominantly are net profit margin (NPM) and gross profit margin (GPM). These are some important ratios of income statement to analyze the financial strength of a company. The NPM of the selected companies are mentioned below,
DuPont Composition Analysis
The DuPont Composition is basically the segregation of different ratios
The average ROE of Aecon Gr. is 11.72%, while it is 25.77% for Bird Construction and 14.65% for Boyuan Constructions, therefore it could be said that the DuPont decomposition of Bird Construction Inc is the highest manifesting a net figure of 25.77%, followed by Boyuan Construction and Aecon Gr on second and third place as 14.65% and 11.72% respectively.
Cash Flow from operation is basically an indication that the company has enough cash available from their sales.
- Stock Pricing is one of the most important things from the viewpoint of an organization and it is an important measure through which the financial position of an organization would have been analyzed accordingly. The comparison of the stock price, along with its high and low price has been mentioned in the table and graph format as well.
Likewise, the financial position, the share price of Bird Corporation is also high as compared to other two companies, which is showing that the power of Bird Corporation in terms of financial competitiveness is higher than the other two companies. It can be seen that the companies are adhering to the industry
- Financial forecasting could be extremely important and vital for an organization as it gives a sort information and knowledge to the companies from which the financial position of a company could be analyzed accordingly. In this section, it is required to forecast the sales, EPS, Dividend Per Share, P/E and Share Price of the selected companies and all of the forecasted information has been mentioned in the below mentioned table
Relevant percentages have been applied on each of the element, like share, EPS, P/E and others. The sales have been increased by 8% in total.
- In the technical analysis, we have taken into consideration the information of two months of information. The two technical tools which have been used for the same purpose are mean and standard deviation. The information along with the application of tool of the same are mentioned below in the table format.
- Share Price Analysis is one of the most important financial analytical tool which would be used for different purposes in total. There are number of tools which could be used for the same purpose, like DDM, RIM and Share Price and we are using the DDM method for the same. DDM is an acronym of Dividend Discount Model and the analysis of each one is mentioned below
Pe = do / Ke – g
Share Price of Aecon is = 12.34
Share Price of Bird Corporation is = 16.67
Share Price of Aecon is = 0.21
All of the three stocks have high potential to flourish in the market; hence I would recommend a strong buy strategy for all of these stocks in particular.
Work Cited
Aecon Group Inc (2012), [Online], retrieved from <http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=2AE:GR&dataset=cashFlow&period=A¤cy=native>, Accessed on 2013-Nov-09th
Bird Construction Inc (2012), [Online], retrieved from <http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=BDT:CN&dataset=cashFlow&period=A¤cy=native >, Accessed on 2013-Nov-09th
Boyuan Construction Group In (2012), [Online], retrieved from <http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=BYGRF&dataset=cashFlow&period=A¤cy=native >, Accessed on 2013-Nov-09th
