¶ … companies, Andrews, Baldwin, Chesty, Digby, Erie and Ferris. They vary in terms of overall sales, return on assets, market share, and productivity as well as their utilization shares, and S&P ratings (variable, with none in the A or top range). Andrews is the base business model, with sales of $327 m and a profit in the last fiscal year of $46.3 m, or about 14.2%. In general, if we use an overall rating system, we find that the ranking of the organizations in terms of profitability overall may be expressed as:
Company
Sales
Profit
% Profit
Market
Millions
Millions
Share
Erie
Andrews
Chester
Baldwin
Digby
Ferris
Erie shows the largest profit as a percentage of sales, but Andrews is the clear market leader, with 21% market share and only slightly below .7% Erie in terms of profit percentage in relation to sales. In addition, Andrews has $131m more in profit, or about 65% more than Erie.
Stock Prices
The market is only confident for Andrews (BB), with small levels of confidence in Baldwin and Chester (CC) and low levels of confidence in Digby, Erie, and Ferris. Stock prices for the companies are as follows:
Company
Price
Notes
Andrews
$106.47
Strong ROE, BB Rating, high productivity rate (116%), positive free cash flow, and ratios show ability to pay dividends, and a more consistent profitability over time.
Erie
$85.78
Erie is healthy in terms of sales, assets, and equity, and is slightly undercapitalized (seasonality) with $1.5 million, or just over 2 months in working capital, but a productivity ratio of 105%. They can perhaps pay a small dividend, but are also rated at CCC, which means unlikely.
Digby
$74.54
Relatively high stock price with a ROS of 6.23%, high productivity at 106.4%, but a $5 million negative in free cash flow that moves to a CCC rating with low potential for dividends and a potentially problematical few quarters (less than 2 months of working capital).
Baldwin
$64.33
Baldwin is profitable in sales, has a small ROA and ROE, with a positive working capital and yet -$18 million in free cash flow, or just over 1 month. It is rated at CC, with 107% productivity, Unlikely to pay dividends of any substance.
Ferris
$42.29
While Ferris has a relatively strong productivity index of 108%, it is negative in ROS, ROA, and ROE. Ferris has 54 days of working capital, and yet a free cash flow %of -$18.5 m, small or no dividend likely
Chester
$38.22
Chester has a negative ROS and ROA/ROE, is the lowest of all in terms of productivity at 103.6%, and is -$20m in free cash flow, with only 6 weeks of working capital, again, low ability to pay dividends (CC Rating). Chester is the weakest in plant utilization, at 91% as well as overall market...
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