To analyze two e-Commence companies: Amazon and Walmart. Here are the research guidelines.
You should conduct the following researches and fundamental analysis:
1. Company stock performance(ge from Yahoo finance):
i. market capitalizations; public floating shares as of total shares; top 10 shareholders
ii. stock prices with 3-year time-spans;
iii. stock prices compare to S and ;P 500 and Nasdaq index with 1-year time span);
iv. stock prices compare to major competitors with 1-year time-span).
2. Business overviews:
To summarize company businesses in bullet points (get from annual report) such as target markets (e.g.
To B or To C, social class, women, mobile population etcs), industry positions(market shares), key products and their applications (such as average selling price), customer categories (e.g. top 10 customers, industries), business segments, regions of operating.
3. Industries overviews and key competitors:
i. To summarize the industry developments, recent industry dynamics and future trends;
ii. To identify the market sizes (divided into segments if necessary) and manage to quantify them(Can research from sell-side reports);
iii. To present key drivers behind the industry (e.g. tech, population, GDP, consumption' upgrades etcs)
iv. To outline 2-3 major competitors (listed companies preferred) with brief introduction (market caps, market shares, valuation trading multiples, margins, key products, recent developments, other similarities & differences).
4. Topline drivers: diagrams and tables are recommended
i. Revenue breakdowns;
ii. Revenue numbers in tables;
iii. Revenue changes over last 3 or 5 years (YOY) depending on businesses' stabilities; revenues change over last 8 quarters (QOQ);
iv. Revenues by regions;
v. To research and analyze the key growth drivers (e.g. ASP, new markets, paying users, MAU/DAU).
5. Margins: diagrams are recommended
i. Gross margin; operating income margin; net income margin (last 8 quarters);
ii. To explain the reasons behind the changes;
iii. To list different kind of expenses (e.g. sales and marketing, research and development etc.) into one diagram over last 8 quarters.
6. Profits: diagrams and tables recommended
i. Profits breakdown (if possible); Profits numbers in tables;
ii. Profits changes over last 3 or 5 years (YOY) depending on businesses' stabilities, profits changes over last 8 quarters (QOQ);
iii. Understand the reasons behind the growths/changes.
7. Financials and ratios(To be customized):
Researches are including but not limited to R and D investments and changes (in percentages of revenues) , leverages, debt to equity ratio, recent equity/debt financing activities, free cash flow changes, dividend payout changes.
8. Other information(To be customized):
Company histories, valuations (valuation method (e.g. P/E, EV/EBITDA, P/S) and forward trading multiples given by sell-side consensus); supply chain reviews/managements; major activities; management
highlights (remarkable leadership& senior profiles); corporate governance (positive &negative highlights).
Key strengths and Weaknesses & Opportunities and Threats. such as operating advantages/edges, technology advances, political risks & regulation dynamics, industry developments and trends, competitions, barrier of entries; ways of tracking company's operation (e.g. shipments, third-party research ), future catalysts(e.g. earning dates, exhibitions, new product launch etc.) .
10. Conclusions: Investment recommendations, research shortfalls.
1. Presenting format: Calibri, Font size 14-24, 1.5x line space, blank background, bullet points with frequent underlines& bold highlights, clear pictures &screenshots in structured ways
2. Research sources: Annual report, company website (investor relations), recent Earning transcripts(google seeking alpha), Google(recent news), Yahoo finance, sell-side reports, library databases etcs.
These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.Business Overviews
• Amazon targets the middle and upper class men and women with hands on experience in basic technology, but with little time for physical outlets
• Wal-Mart targets males and females of all age categories, low and middle income classes, reserved and cost-conscious individuals, non-users, prospective-users, regular users, and former users.
• Wal-Mart current market share stands at 11.4 percent while that of Amazon is 36.9 percent.
Key products and their applications
Each of the two companies has over 40 key product categories. Some of the main ones include;
• Automotive & Powersports - Parts, Tools & Equipment, Accessories
• Baby Products- Nursery, Feeding, Gear
• Beauty - Fragrance, Makeup, Hair Care, Fragrance, and Bath and Shower
• Business Products (B2B) - Multiple category products that are of relevance to businesses
• Camera and Photo - Cameras, Telescopes, Camcorders
• Amazon: Adobe Systems, Airbnb, AON, BMW, Autodesk, Canon, Bristol-Myers Squibb, Comcast, Capital One, Hitachi.
• Wal-Mart: Murphy USA Inc., Outerwall Inc., U.S. Cellular Corporation, Ausnutria Dairy Corporation Ltd, China Silver Group Ltd.
• Amazon: International, Media, Electronics & other general merchandise, AWS
• Wal-Mart: International, Wal-Mart Stores, Sams Club
Regions of operating
• Amazon: Americas, Europe, Africa, Middle East, Asia Pacific
• Wal-Mart: The entire North American region, South America (Brazil, Chile, Argentina), Africa (Ghana, Nigeria, Uganda, Kenya, Tanzania, Zambia, Namibia, Botswana, Mozambique), Asia (India, China, Japan), and Europe (UK).
Industries overview and key competitors
Amazon operates in the e-commerce...
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