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  • Exxon Mobil 2012 1Q Financial Analysis

    Exxon Mobil 2012 1Q results looks quite stable. Although these was a visible decrease at Q4 in revenue in Q 1 decrease has stoped and showed some increase driven mostly by high oil prices which IMF estimates that will stay high during all Y2012. Quarterly revenue has increased up to 119 bn.$ compared to 109 bn.$ (Δ+9%) last year or to 116 bn.$ (Δ+3%) at Q4. Tough Net earnings before depreciations which are more importand has decreased to 13,3 bn.$ from 14,4 bn.$ (Δ-8%) last year or to 13,5 bn.$ (Δ-2%) at Q4 which is not good, but if looking at longer perspective earning increase is visible compared to Y2010.

    (click to enlarge)

    Companies main market is United states which hold ~1/3 of companies revenue. Other revenue is not relieved but by studding sales of oil, gas and petrol in tones Asia Pacific and Europe should be about equal and around 1/4. Since Europe holds only ~1/4 of companies sales its recession should not impact companies growth driven by US and Asia markets. Main part of companies revenue and also earnings come from Downstream ~83% In general companies results are slightly negative.

    (click to enlarge)

    Companies balance structure is not the perfect one. Equity level is below 1/2 and is decreasing over pas few quarters and now has reached 46% which is not a good sing. Liquidity ratio is also below 1, good thing that it is very near the 1 line, but still it remain below which is risky thing. Return on equity is around 12%.

    (click to enlarge)

    Inventory turnover is only 12 days while Receivable turnover is also good ~30 days. Companies investments into long term property was ~8 bn.$ , while it was 31 bn.$ in Y2011 or ~55% of companies generated earnings before depreciation. Share repurchase spending are also stable at ~5 bn.$/quarter or ~20 bn.$ at Y2011 or 36% of companies earnings. Dividend payments cost ~9 bn.$/year or only 16%, if calculating announced dividend increase it would be ~11 bn.$/year or still only 19%. Share repurchase and dividend spending takes out 55% of total companies earnings which is not a good level taking into account that other companies like IBM or Intel spends more on this activity then they actually earn. Either way it would be lovely to see slight increase in equity level just over 50% and decrease short term liabilities so that they would be lower then short term asset. No other major changes at the balance sheet. In general companies balance structure is a bit risky.

    Share value:

    Equity / share157 bn.$4,676 bn.33,6 $/sh.
    Market value83,3 $+49,7$4,2 years
    Year Net income before Depreciation55,5 bn.$+11,9$/sh.14,2%

    Companies share basic value is ~33,6$ (32,8$ compared to 4Q). Current market price is ~83$(86$), which shows that market is paying ~18,5$ more or 4,2 years (4,4 years) of Net income before Depreciation earnings 55,5 bn.$/year or 11,9$/share. Companies shares market evaluation is good. Share profitability (Share market price/Net income before Depreciation) if not calculating goodwill write-off is 14,2% (14%) which is also good.

    Company pays 0,57$/share/quarter dividend or ~2,7% (2,2%) dividend yield which is good, with dividend payout ratio ~19% which is a very good level with a lot of reserve. Company has increased its dividend payments up from 0,47$ to 0,57$ or by +27% compared to last year. Companies cash flow management can be considered as well balanced.

    Analysis source: Exxon Mobil 2012 1Q financial results

    Previous analysis: Exxon Mobil 2011 4Q financial analysis

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: XOM
    May 29 2:45 PM | Link | Comment!
  • Johnson & Johnson 2012 1Q Financial Analysis

    Johnson & Johnson 2012 1Q results quite flat . Revenue has dropped from 16,2 bn.$ to 16,1 bn.$ (Δ-0,2%), earning increased due to 0,6 bn.$ income from favorable currency rate, if excluding this companies earnings would be also little bit less then previous year. Mostly due to that Net earning before depreciation increased from 4,2 bn.$ to 4,7 bn.$ but either way its a increase of 11%. And large 2,4 bn.$ expenses at Q4 for litigation settlements and product liabilities expenses.

    (click to enlarge)

    Companies main sale market is US with 45%, but Europe is the second largest market with 26%, company also has a strong holding in Asia 19% so sales are well targeted and mainly on growth markets US and Asia. Main sale segment is Pharmaceutical which generates about half of companies profit. In general companies results are average.

    (click to enlarge)

    Balance structure is improving after 4Q loss. Equity level has increased from ~50% to 53% is at good level and going in right direction - increasing. Return on asset at Q1 was the largest since Y2011 and was about 26%. Companies share repurchase program is quite conservative as company pays for dividends 1,5 bn.$ share repurchase reach only 0,07 bn.$ which is good compared to companies like IBM and Intel who spend more then they earn.

    (click to enlarge)

    Other companies ratios are also good. Liquidity ratio is 2,7. Cash and investments holdings ~34 bn.$ which is ~28% of total companies asset. Inventory turnover is 40 and account receivables turnover is 60 days which is normal. Company has invested ~1 bn.$ at Q1 in long term asset. In general companies balance structure is acceptable.

    Share value:

    Equity / share57,1 bn.$2,746 bn.20,8 $/sh.
    Market value64,8 $+44,0$9,2 years

    (7,7 years)

    Year Net income before Depreciation13,3 bn.$

    (15,7 bn.$)

    +4,8$/sh.

    (5,7$/sh.)

    7,4%

    (8,8%)

    Companies share basic value is ~20,8$. Current market price is ~64,8$, which shows that market is paying ~44$ more or 9,2 years of Net income before Depreciation earnings 13,3 bn.$/year or 4,8$/share. If excluding 2,4 bn.$ $ expenses at Q4 for litigation settlements and product liabilities expenses earnings would be 15,7 bn.$ or 5,7$/sh. which leads to 7,7 years. Companies shares market evaluation is a bit highly evaluated. Share profitability (Share market price/Net income before Depreciation) is 8,8% which is average.

    Company pays 0,61$/share/quarter dividend or ~3,8% dividend yield which is quite good, with dividend payout ratio ~43% which is a bit high.

    Analysis source: Jonson&Jonson 2012 1Q financial results

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: JNJ
    May 29 2:44 PM | Link | Comment!
  • Intel 2012 1Q Financial Analysis

    Intel 2012 1Q results are slightly negative. Even if quarter revenue has increased from 12,9 bn.$ to 12,8 bn.$ but as can seen from chart below companies revenue shows decrease since it is not very influenced by seasonality at Q4. Net income before depreciation decreased from 4,6 bn.$ to 4,5 bn.$. This decrease could be driven by slowdown in worlds economy.

    (click to enlarge)

    Companies main sales goes to Assia Pacific region. Since this region will continue to show largest growth that is a good news. Europe share is only 14% so Europe recession will not have that much impact on company. Company has lost some of its Ameriacas sales which has dropped compared to previous years 1Q. About 2/3 of companies revenue comes from PC area.

    (click to enlarge)

    According to http://www.cpubenchmark.net Intel share in CPU market remains ~80% which is a good thing as company continues to hold on to its main market leader position and even growing it. In general companies results are slightly negative.

    Companies Equity level remains strong 65%, but what is worrying is that its trend is stably going down as company is repurchasing its share quit aggressive, at Y2011 company repurchased its own stocks for over 12 bn.$ if adding ~4 bn.$ of paid dividends 16 bn.$ is almost all of companies generated Net income before depreciation ~18 bn.$ and is 133% from 12 bn.$ net income. This level is quit high. But 1Q alone showed slightly increase in equity level from 64,6% to 65,1% as company repurchased only 1,5 bn.$ of its shares. As now company has quit good balance and its shares price is quit normal at the market, such aggressive repurchase could be justifiable, but this must be watched over.

    (click to enlarge)

    Other companies ratios are also good as equity is still in quite high level. Liquidity ratio is over 2. Cash and investments holds ~15 bn.$ which is ~1/5 of total companies asset. Inventory and account receivables turnover is around 30 days which is good. Companies investments into long term property (equipments, plants ect.) is ~3 bn.$/quarter which is good because this will bring profit in the future. In general companies balance structure is strong.

    Share value:

    Equity / share46,8 bn.$5,008 bn.9,4 $/sh.
    Market value27,9 $+18,5$5,1 years
    Year Net income before Depreciation17,9 bn.$+3,6$/sh.12,8%

    Companies share basic value is ~9,4$. Current market price is ~27,9$, which shows that market is paying ~18,5$ more or 5,1 years of Net income before Depreciation earnings 17,9 bn.$/year or 3,6$/share. Companies shares market evaluation is normal. Share profitability (Share market price/Net income before Depreciation) if not calculating goodwill write-off is 12,8% which is quite good.

    Company pays 0,225$/share/quarter dividend or ~3,2% dividend yield which is good, with dividend payout ratio ~25% which is also a good level. Company has increased its dividend payments up from 0,21$ to 0,225$ or by +8% compared to last year. Companies cash flow management can be considered as well balanced.

    Analysis source: Intel 2012 1Q financial results

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: INTC
    May 29 2:42 PM | Link | Comment!
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