Analyze the market valuations of the two companies. Metro and Empire. Complete the provided template B...

 

 

 

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Analyze the market valuations of the two companies. Metro and Empire. Complete the provided template B for BOTH companies. Write a half-page summary comparing both companies which should include; o What has been the trading range of each company? o What company has a more attractive valuation? o What company has a more attractive dividend policy? FIN 2500 Assignment #1 FINANCIAL TEMPLATE B Part 1 - 5-year P/E trend using closing price (use Empire pg 90 and Metro pg 3) EMPIRE EPS-adjusted Share Price-High Share Price-Low P/E-High P/E-Low F2020 EMPIRE F2020 F2019 DPS Dividend Growth (5) Payout ratio (%) Dividend Yield* (%) *NOTE: use year end share price Part 2 - Dividend analysis - 5-year trend (use Empire pg 90 and Metro pg 3) F2018 F2019 F2017 F2018 F2016 F2017 F2016 METRO EPS-adjusted Share Price-High Share Price - Low P/E-High P/E-Low F2019 METRO DPS Dividend Growth (5) Payout ratio (%) Dividend Yield (5) *NOTE: use year end share price F2019 F2018 F2018 F2017 F2017 F2016 F2016 F2015 F2015 Eleven-Year Financial Review SUPPLEMENTARY INFORMATION - UNAUDITED Year Ended Financial Results ($ in millions) Sales Operating income (loss) Adjusted operating income EBITDA Adjusted EBITDA Finance costs, net Income tax expense (recovery) Non-controlling interest Net earnings (loss) Adjusted net earnings Financial Position (5 in millions) Total assets Long-term debt (excluding current portion) Shareholders' equity Per Share Data on a Fully Diluted Basis ($ per share) Net earnings doss) Adjusted net earnings Dividends Non-Vating Class A shares Class B common shares Book value Share Price, Non-Voting Class A Shares ($ per share) High Low Close S 2020 26,588.2 $ 1,111.8 1,130.1 1,892.4 1,892.4 279.1 219.9 29.3 583.5 596.8 14,632.9 1,105.2 3,924.6 2.15 2.20 0.480 0.480 14.51 37.36 24.29 31.01 271.4 2019 25,142.0 $ 652.3 683.6 1,069.5 1,076.2 91.6 1443 29.1 387.3 410.0 9,602 4 1,984.4 4,003 3 1.42 1.50 0.440 0.440 14.72 31,11 22.69 29.94 2018 24,214.6 346.5 601.7 785.7 1,014.7 1105 56.2 20.3 159.5 344 3 8,662.0 1,139.5 3,702.8 0.59 1.27 0.420 0.420 13.62 26.15 18.74 25.01 2017 $ 23,806.2 333.0 378 5 777 2 796 9 118.0 425 14.0 158.5 191.3 8,695.5 1,736.8 3,644 2 0.58 0.70 0.410 0.410 13.40 22.56 15.00 21.50 272.6 272.1 2720 Diluted weighted average number of shares outstanding (in millions) (1) Fiscal years and the first Saturday in May, consistent with the fiscal year-end of Sobeys Inc. Financial data for fiscal 2010 with the exception of the balances noted for financial position for fiscal 2010, were prepared using CGAAP and have not been restated to IFRS Fiscal 2011 and 2016 are 53-week years Attributable to owners of the Company (3) Net of non-controlling interest S 2016 24,618.8 $ 23,928.8 $ (2,418.5) 7424 7137 867.0 (1,944.7) 1,224.9 1,161.4 1,321.9 137.4 155.1 (441.3) 164 (2,131.0) 410.2 9,138.5 2,017.0 3,623.9 (7.78) 1.50 0400 0400 13.23 2015 30.79 20.23 21.09 2740 150.4 17.9 419.0 511.0 11,497.2 2,230.2 5,9867 1.51 1.84 0.360 0.360 21.61 31.60 21.67 29.15 277:2 2014 1,052 8 131.4 36.3 20,957.8 $ 17,343.9 $ 16,249.1 S 326.7 573.2 534.3 639.7 513.9 753.5 8766 8562 59.9 8.0 235.4 390.6 12,236.6 3,282.1 5,700.5 0.98 1.62 0.347 0347 20.59 2013 27.75 21.68 22.88 2406 553.4 918.1 942.9 55.4 136.4 9.1 379.5 390.7 7,140.4 915.9 3,724 8 1.86 1.91 0.320 0.320 18.27 2012 22.88 17:85 22.86 204 2 1223 127 339.4 322.7 6,913.1 889.1 3,396 3 1.66 1.58 0.300 0.300 16.66 21.00 17.57 19.21 204 2 2011 15,956.8 $ 15,516.2 525.7 479.7 500.4 863.0 837.7 75.4 122.0 9.0 400.6 303.2 6,518.6 1,090.3 3,162.1 1.96 1.48 0.267 0.267 15.49 2010 19.71 17.02 18.05 204 6 479.7 819.4 819.4 72.5 99.1 5.6 301.9 284.5 6,248.3 821.6 2,9524 1.47 1.39 0.247 0.247 14.36 17.98 13:23 17.66 205.4 Analyze the market valuations of the two companies. Metro and Empire. Complete the provided template B for BOTH companies. Write a half-page summary comparing both companies which should include; o What has been the trading range of each company? o What company has a more attractive valuation? o What company has a more attractive dividend policy? FIN 2500 Assignment #1 FINANCIAL TEMPLATE B Part 1 - 5-year P/E trend using closing price (use Empire pg 90 and Metro pg 3) EMPIRE EPS-adjusted Share Price-High Share Price-Low P/E-High P/E-Low F2020 EMPIRE F2020 F2019 DPS Dividend Growth (5) Payout ratio (%) Dividend Yield* (%) *NOTE: use year end share price Part 2 - Dividend analysis - 5-year trend (use Empire pg 90 and Metro pg 3) F2018 F2019 F2017 F2018 F2016 F2017 F2016 METRO EPS-adjusted Share Price-High Share Price - Low P/E-High P/E-Low F2019 METRO DPS Dividend Growth (5) Payout ratio (%) Dividend Yield (5) *NOTE: use year end share price F2019 F2018 F2018 F2017 F2017 F2016 F2016 F2015 F2015 Eleven-Year Financial Review SUPPLEMENTARY INFORMATION - UNAUDITED Year Ended Financial Results ($ in millions) Sales Operating income (loss) Adjusted operating income EBITDA Adjusted EBITDA Finance costs, net Income tax expense (recovery) Non-controlling interest Net earnings (loss) Adjusted net earnings Financial Position (5 in millions) Total assets Long-term debt (excluding current portion) Shareholders' equity Per Share Data on a Fully Diluted Basis ($ per share) Net earnings doss) Adjusted net earnings Dividends Non-Vating Class A shares Class B common shares Book value Share Price, Non-Voting Class A Shares ($ per share) High Low Close S 2020 26,588.2 $ 1,111.8 1,130.1 1,892.4 1,892.4 279.1 219.9 29.3 583.5 596.8 14,632.9 1,105.2 3,924.6 2.15 2.20 0.480 0.480 14.51 37.36 24.29 31.01 271.4 2019 25,142.0 $ 652.3 683.6 1,069.5 1,076.2 91.6 1443 29.1 387.3 410.0 9,602 4 1,984.4 4,003 3 1.42 1.50 0.440 0.440 14.72 31,11 22.69 29.94 2018 24,214.6 346.5 601.7 785.7 1,014.7 1105 56.2 20.3 159.5 344 3 8,662.0 1,139.5 3,702.8 0.59 1.27 0.420 0.420 13.62 26.15 18.74 25.01 2017 $ 23,806.2 333.0 378 5 777 2 796 9 118.0 425 14.0 158.5 191.3 8,695.5 1,736.8 3,644 2 0.58 0.70 0.410 0.410 13.40 22.56 15.00 21.50 272.6 272.1 2720 Diluted weighted average number of shares outstanding (in millions) (1) Fiscal years and the first Saturday in May, consistent with the fiscal year-end of Sobeys Inc. Financial data for fiscal 2010 with the exception of the balances noted for financial position for fiscal 2010, were prepared using CGAAP and have not been restated to IFRS Fiscal 2011 and 2016 are 53-week years Attributable to owners of the Company (3) Net of non-controlling interest S 2016 24,618.8 $ 23,928.8 $ (2,418.5) 7424 7137 867.0 (1,944.7) 1,224.9 1,161.4 1,321.9 137.4 155.1 (441.3) 164 (2,131.0) 410.2 9,138.5 2,017.0 3,623.9 (7.78) 1.50 0400 0400 13.23 2015 30.79 20.23 21.09 2740 150.4 17.9 419.0 511.0 11,497.2 2,230.2 5,9867 1.51 1.84 0.360 0.360 21.61 31.60 21.67 29.15 277:2 2014 1,052 8 131.4 36.3 20,957.8 $ 17,343.9 $ 16,249.1 S 326.7 573.2 534.3 639.7 513.9 753.5 8766 8562 59.9 8.0 235.4 390.6 12,236.6 3,282.1 5,700.5 0.98 1.62 0.347 0347 20.59 2013 27.75 21.68 22.88 2406 553.4 918.1 942.9 55.4 136.4 9.1 379.5 390.7 7,140.4 915.9 3,724 8 1.86 1.91 0.320 0.320 18.27 2012 22.88 17:85 22.86 204 2 1223 127 339.4 322.7 6,913.1 889.1 3,396 3 1.66 1.58 0.300 0.300 16.66 21.00 17.57 19.21 204 2 2011 15,956.8 $ 15,516.2 525.7 479.7 500.4 863.0 837.7 75.4 122.0 9.0 400.6 303.2 6,518.6 1,090.3 3,162.1 1.96 1.48 0.267 0.267 15.49 2010 19.71 17.02 18.05 204 6 479.7 819.4 819.4 72.5 99.1 5.6 301.9 284.5 6,248.3 821.6 2,9524 1.47 1.39 0.247 0.247 14.36 17.98 13:23 17.66 205.4