Brilliant Answer only
Cover
| Investment Banking, 2E | ||||||
| Valuation, Leveraged Buyouts, | ||||||
| and Mergers & Acquisitions | ||||||
| Comparable Companies Analysis - Completed | ||||||
| JOSHUA ROSENBAUM | ||||||
| JOSHUA PEARL |
List
| ($ in millions) | |||||||
| List of Comparable Companies | |||||||
| Equity | Enterprise | LTM | LTM | ||||
| Company | Ticker | Business Description | Value | Value | Sales | EBITDA | |
| ValueCo Corporation | NA | Manufactures specialty chemicals and materials for the aerospace, automotive, and building products end markets | -0 | -0 | $3,385 | $700 | |
| BuyerCo | BUY | Produces chemicals and advanced materials including acetyl, acetate, vinyl emulsion, and engineered polymers | 9,800 | 11,600 | 6,560 | 1,443 | |
| Falloon Group | FLN | Manufactures differentiated and commodity chemical products including those in adhesives, aerospace, automotive, and consumer products | 7,480 | 11,254 | 11,835 | 1,636 | |
| Sherman Co. | SHR | Produces chemicals and plastics including coatings, adhesives, specialty polymers, Inks, and intermediates, performance polymers | 5,600 | 8,101 | 5,895 | 1,047 | |
| Pearl Corp. | PRL | Supplies specialty chemical, construction, and container products for the food, consumer products, petroleum refinery, and construction industries | 5,172 | 5,856 | 4,284 | 839 | |
| Gasparro Corp. | JDG | Develops various chemical products for use in crop protection, pharmaceuticals, and electronics applications | 5,000 | 6,750 | 4,725 | 900 | |
| Kumra Inc. | KUM | Manufactures brominated flame retardants, refinery catalysts, and fine chemistry products | 4,852 | 5,345 | 3,187 | 665 | |
| Goodson Corp. | GDS | Manufactures and markets basic chemicals, vinyls, polymers, and fabricated products | 4,160 | 5,660 | 4,769 | 763 | |
| Pryor Industries | PRI | Develops and manufactures specialty chemicals for various end users including aerospace, plastics, coatings, and mining industries | 3,926 | 4,166 | 3,682 | 569 | |
| Lanzarone Global | LNZ | Manufactures plastics and other chemicals including urethane polymers, flame retardants, seed treatment, and petroleum additives | 3,230 | 3,823 | 3,712 | 578 | |
| McMenamin & Co. | MCM | Manufactures thermoplastic compounds, specialty resins, specialty polymer formulations, engineered films, and additive systems | 3,193 | 3,193 | 3,223 | 355 | |
| S. Momper & Co. | MOMP | Manufactures chlorine, caustic soda, sodium hydrosulfite, hydrochloric acid, bleach products, and potassium hydroxide | 2,240 | 2,921 | 2,077 | 378 | |
| Adler Worldwide | ADL | Produces titanium dioxide pigments for paints, plastics, inks, and cosmetics | 1,217 | 1,463 | 1,550 | 245 | |
| Schachter & Sons | STM | Manufactures and markets chemical and plastic products including electrochemicals, methanol, and aromatic chemicals | 1,125 | 1,674 | 1,703 | 238 | |
| Girshin Holdings | MGP | Manufactures carbon compounds and wood treatments | 1,035 | 1,298 | 1,606 | 177 | |
| Crespin International | MCR | Produces engineered polymers and styrenic block copolymers used in adhesives, coatings, consumer, and personal care products | 872 | 1,222 | 1,443 | 190 |
Benchmarking 1
| ValueCo Corporation | |||||||||||||||||||||||
| Benchmarking Analysis – Financial Statistics and Ratios, Page 1 | |||||||||||||||||||||||
| ($ in millions, except per share data) | |||||||||||||||||||||||
| Market Valuation | LTM Financial Statistics | LTM Profitability Margins | Growth Rates | ||||||||||||||||||||
| Gross | Net | Sales | EBITDA | EPS | |||||||||||||||||||
| Equity | Enterprise | Gross | Net | Profit | EBITDA | EBIT | Income | Hist. | Est. | Hist. | Est. | Hist. | Est. | Est. | |||||||||
| Company | Ticker | Value | Value | Sales | Profit | EBITDA | EBIT | Income | (%) | (%) | (%) | (%) | 1-year | 1-year | 1-year | 1-year | 1-year | 1-year | LT | ||||
| ValueCo Corporation | NA | -0 | -0 | $3,385 | $1,155 | $700 | $500 | $248 | 34% | 21% | 15% | 7% | 10% | 9% | 15% | 9% | NA | NA | NA | ||||
| Tier I: Specialty Chemicals | |||||||||||||||||||||||
| BuyerCo | BUY | $9,800 | $11,600 | $6,560 | $2,329 | $1,443 | $1,279 | $705 | 36% | 22% | 20% | 11% | 14% | 8% | 22% | 8% | 27% | 10% | 7% | ||||
| Sherman Co. | SHR | 5,600 | 8,101 | 5,895 | 1,945 | 1,047 | 752 | 419 | 33% | 18% | 13% | 7% | 10% | 7% | 10% | 7% | 11% | 11% | 9% | ||||
| Pearl Corp. | PRL | 5,172 | 5,856 | 4,284 | 1,585 | 839 | 625 | 325 | 37% | 20% | 15% | 8% | 10% | 7% | 10% | 7% | 10% | 15% | 11% | ||||
| Gasparro Corp. | JDG | 5,000 | 6,750 | 4,725 | 1,680 | 900 | 725 | 388 | 36% | 19% | 15% | 8% | 8% | 11% | 5% | 15% | 6% | 31% | 12% | ||||
| Kumra Inc. | KUM | 4,852 | 5,345 | 3,187 | 922 | 665 | 506 | 248 | 29% | 21% | 16% | 8% | 10% | 8% | 10% | 8% | 11% | 20% | 10% | ||||
| Mean | 34% | 20% | 16% | 8% | 10% | 8% | 11% | 9% | 13% | 17% | 10% | ||||||||||||
| Median | 36% | 20% | 15% | 8% | 10% | 8% | 10% | 8% | 11% | 15% | 10% | ||||||||||||
| Tier II: Commodity / Diversified Chemicals | |||||||||||||||||||||||
| Falloon Group | FLN | $7,480 | $11,254 | $11,835 | $3,373 | $1,636 | $1,044 | $465 | 29% | 14% | 9% | 4% | 5% | 4% | 5% | 4% | 5% | 18% | 5% | ||||
| Goodson Corp. | GDS | 4,160 | 5,660 | 4,769 | 1,431 | 763 | 525 | 214 | 30% | 16% | 11% | 4% | 10% | 5% | 10% | 5% | 17% | 16% | 9% | ||||
| Pryor Industries | PRI | 3,926 | 4,166 | 3,682 | 1,178 | 569 | 421 | 227 | 32% | 15% | 11% | 6% | 5% | 5% | 5% | 5% | 2% | 11% | 10% | ||||
| Lanzarone Global | LNZ | 3,230 | 3,823 | 3,712 | 854 | 578 | 430 | 233 | 23% | 16% | 12% | 6% | 5% | 5% | 4% | 5% | 4% | 16% | 8% | ||||
| McMenamin & Co. | MCM | 3,193 | 3,193 | 3,223 | 903 | 355 | 226 | 119 | 28% | 11% | 7% | 4% | 5% | 15% | 5% | 15% | 7% | 20% | 12% | ||||
| Mean | 28% | 14% | 10% | 5% | 6% | 7% | 6% | 7% | 7% | 16% | 9% | ||||||||||||
| Median | 29% | 15% | 11% | 4% | 5% | 5% | 5% | 5% | 5% | 16% | 9% | ||||||||||||
| Tier III: Small-Cap Chemicals | |||||||||||||||||||||||
| S. Momper & Co. | MOMP | $2,240 | $2,921 | $2,077 | $457 | $378 | $295 | $130 | 22% | 18% | 14% | 6% | 5% | 11% | 5% | 11% | 7% | 8% | 5% | ||||
| Adler Worldwide | ADL | 1,217 | 1,463 | 1,550 | 387 | 245 | 183 | 89 | 25% | 16% | 12% | 6% | 5% | 5% | 5% | 5% | 7% | 8% | 7% | ||||
| Schachter & Sons | STM | 1,125 | 1,674 | 1,703 | 426 | 238 | 170 | 76 | 25% | 14% | 10% | 4% | 11% | 15% | 11% | 15% | 16% | 19% | 11% | ||||
| Girshin Holdings | MGP | 1,035 | 1,298 | 1,606 | 273 | 177 | 112 | 52 | 17% | 11% | 7% | 3% | 5% | 15% | 5% | 15% | 12% | 15% | 8% | ||||
| Crespin International | MCR | 872 | 1,222 | 1,443 | 390 | 190 | 133 | 61 | 27% | 13% | 9% | 4% | 5% | 15% | 4% | 14% | 5% | 10% | 6% | ||||
| Mean | 23% | 14% | 10% | 5% | 6% | 12% | 6% | 12% | 10% | 12% | 7% | ||||||||||||
| Median | 25% | 14% | 10% | 4% | 5% | 15% | 5% | 14% | 7% | 10% | 7% | ||||||||||||
| Overall | |||||||||||||||||||||||
| Mean | 29% | 16% | 12% | 6% | 8% | 9% | 8% | 9% | 10% | 15% | 9% | ||||||||||||
| Median | 29% | 16% | 12% | 6% | 5% | 8% | 5% | 8% | 7% | 15% | 9% | ||||||||||||
| High | 37% | 22% | 20% | 11% | 14% | 15% | 22% | 15% | 27% | 31% | 12% | ||||||||||||
| Low | 17% | 11% | 7% | 3% | 5% | 4% | 4% | 4% | 2% | 8% | 5% | ||||||||||||
| Source: Company filings, Bloomberg, Consensus Estimates | |||||||||||||||||||||||
| Note: Last twelve months data based on September 30, 2012. Estimated annual financial data based on a calendar year. |
Benchmarking 2
| ValueCo Corporation | ||||||||||||||||||||
| Benchmarking Analysis – Financial Statistics and Ratios, Page 2 | ||||||||||||||||||||
| ($ in millions, except per share data) | ||||||||||||||||||||
| General | Return on Investment | LTM Leverage Ratios | LTM Coverage Ratios | Credit Ratings | ||||||||||||||||
| Implied | Debt / | Debt / | Net Debt / | EBITDA / | EBITDA | EBIT / | ||||||||||||||
| Predicted | ROIC | ROE | ROA | Div. Yield | Tot. Cap. | EBITDA | EBITDA | Int. Exp. | - Cpx/ Int. | Int. Exp. | ||||||||||
| Company | Ticker | FYE | Beta | (%) | (%) | (%) | (%) | (%) | (x) | (x) | (x) | (x) | (x) | Moody's | S&P | |||||
| ValueCo Corporation | NA | Dec-31 | NA | 10% | 7% | 4% | NA | 30% | 2.1x | 1.9x | 7.0x | 5.5x | 5.0x | NA | NA | |||||
| Tier I: Specialty Chemicals | ||||||||||||||||||||
| BuyerCo | BUY | Dec-31 | 1.24 | 30% | 29% | 9% | 0% | 47% | 1.5x | 1.2x | 10.1x | 8.8x | 9.0x | Ba2 | BB | |||||
| Sherman Co. | SHR | Dec-31 | 1.35 | 16% | 18% | 6% | 2% | 57% | 3.0x | 2.4x | 13.8x | 10.7x | 9.9x | Baa2 | BBB | |||||
| Pearl Corp. | PRL | Dec-31 | 1.58 | 19% | 14% | 7% | 0% | 37% | 1.8x | 0.8x | 8.4x | 7.1x | 6.2x | Baa3 | BBB- | |||||
| Gasparro Corp. | JDG | Dec-31 | 1.25 | 21% | 23% | 8% | 2% | 52% | 2.1x | 1.9x | 9.0x | 7.0x | 7.3x | Baa3 | BBB- | |||||
| Kumra Inc. | KUM | Dec-31 | 1.50 | 17% | 10% | 6% | 2% | 25% | 1.3x | 0.6x | 11.0x | 8.7x | 8.4x | Baa1 | BBB+ | |||||
| Mean | 1.38 | 21% | 19% | 7% | 1% | 44% | 1.9x | 1.4x | 10.5x | 8.4x | 8.2x | |||||||||
| Median | 1.35 | 19% | 18% | 7% | 2% | 47% | 1.8x | 1.2x | 10.1x | 8.7x | 8.4x | |||||||||
| Tier II: Commodity / Diversified Chemicals | ||||||||||||||||||||
| Falloon Group | FLN | Dec-31 | 1.69 | 16% | 14% | 4% | 3% | 55% | 2.5x | 2.2x | 5.7x | 3.8x | 3.6x | Ba3 | BB | |||||
| Goodson Corp. | GDS | Dec-31 | 1.45 | 15% | 11% | 5% | 1% | 52% | 2.9x | 2.0x | 4.2x | 3.0x | 2.9x | Baa3 | BBB- | |||||
| Pryor Industries | PRI | Dec-31 | 1.46 | 14% | 8% | 5% | 1% | 19% | 1.1x | 0.4x | 11.1x | 8.9x | 8.2x | Baa2 | BBB | |||||
| Lanzarone Global | LNZ | Dec-31 | 1.68 | 17% | 12% | 6% | 0% | 27% | 1.3x | 1.0x | 10.7x | 7.9x | 7.9x | Ba3 | BB- | |||||
| McMenamin & Co. | MCM | Dec-31 | 1.64 | 12% | 7% | 4% | 1% | 18% | 1.2x | 0.0x | 10.6x | 8.2x | 6.7x | Ba2 | BB- | |||||
| Mean | 1.58 | 15% | 10% | 5% | 1% | 34% | 1.8x | 1.1x | 8.5x | 6.4x | 5.9x | |||||||||
| Median | 1.64 | 15% | 11% | 5% | 1% | 27% | 1.3x | 1.0x | 10.6x | 7.9x | 6.7x | |||||||||
| Tier III: Small-Cap Chemicals | ||||||||||||||||||||
| S. Momper & Co. | MOMP | Dec-31 | 1.14 | 15% | 9% | 6% | 4% | 40% | 2.6x | 1.8x | 4.5x | 3.7x | 3.5x | Ba1 | BB | |||||
| Adler Worldwide | ADL | Dec-31 | 1.46 | 12% | 7% | 3% | 4% | 22% | 1.6x | 1.0x | 6.2x | 5.0x | 4.7x | Ba2 | BB | |||||
| Schachter & Sons | STM | Dec-31 | 1.90 | 12% | 8% | 3% | 1% | 38% | 2.5x | 2.3x | 5.0x | 3.2x | 3.6x | Ba3 | BB- | |||||
| Girshin Holdings | MGP | Dec-31 | 1.55 | 13% | 9% | 4% | 3% | 34% | 1.8x | 1.4x | 6.3x | 4.7x | 4.0x | Ba3 | BB- | |||||
| Crespin International | MCR | Dec-31 | 1.80 | 10% | 6% | 4% | 0% | 28% | 2.1x | 1.8x | 5.7x | 4.4x | 3.9x | Ba3 | BB- | |||||
| Mean | 1.57 | 12% | 8% | 4% | 2% | 33% | 2.1x | 1.7x | 5.5x | 4.2x | 3.9x | |||||||||
| Median | 1.55 | 12% | 8% | 4% | 3% | 34% | 2.1x | 1.8x | 5.7x | 4.4x | 3.9x | |||||||||
| Overall | ||||||||||||||||||||
| Mean | 1.51 | 16% | 12% | 5% | 1% | 37% | 2.0x | 1.4x | 8.2x | 6.3x | 6.0x | |||||||||
| Median | 1.50 | 15% | 10% | 5% | 1% | 37% | 1.8x | 1.4x | 8.4x | 7.0x | 6.2x | |||||||||
| High | 1.90 | 30% | 29% | 9% | 4% | 57% | 3.0x | 2.4x | 13.8x | 10.7x | 9.9x | |||||||||
| Low | 1.14 | 10% | 6% | 3% | 0% | 18% | 1.1x | 0.0x | 4.2x | 3.0x | 2.9x | |||||||||
| Source: Company filings, Bloomberg, Consensus Estimates | ||||||||||||||||||||
| Note: Last twelve months data based on September 30, 2012. Estimated annual financial data based on a calendar year. |
Ouput
| ValueCo Corporation | |||||||||||||||||||||||||||
| Comparable Companies Analysis | |||||||||||||||||||||||||||
| ($ in millions, except per share data) | |||||||||||||||||||||||||||
| Current | % of | Enterprise Value / | LTM | Total | Price / | LT | |||||||||||||||||||||
| Share | 52-wk. | Equity | Enterprise | LTM | 2012E | 2013E | LTM | 2012E | 2013E | LTM | 2012E | 2013E | EBITDA | Debt / | LTM | 2012E | 2013E | EPS | |||||||||
| Company | Ticker | Price | High | Value | Value | Sales | Sales | Sales | EBITDA | EBITDA | EBITDA | EBIT | EBIT | EBIT | Margin | EBITDA | EPS | EPS | EPS | Growth | |||||||
| Tier I: Specialty Chemicals | |||||||||||||||||||||||||||
| BuyerCo | BUY | $70.00 | 91% | $9,800 | $11,600 | 1.8x | 1.7x | 1.6x | 8.0x | 7.8x | 7.3x | 9.1x | 8.8x | 8.2x | 22% | 1.5244832 | 13.9x | 13.5x | 12.5x | 7% | |||||||
| Sherman Co. | SHR | 40.00 | 76% | 5,600 | 8,101 | 1.4x | 1.4x | 1.3x | 7.7x | 7.7x | 7.2x | 10.8x | 10.7x | 10.1x | 18% | 3.008668633 | 13.4x | 12.8x | 11.8x | 9% | |||||||
| Pearl Corp. | PRL | 68.50 | 95% | 5,172 | 5,856 | 1.4x | 1.4x | 1.3x | 7.0x | 7.0x | 6.5x | 9.4x | 9.4x | 8.7x | 20% | 1.788404889 | 15.9x | 14.7x | 13.4x | 11% | |||||||
| Gasparro Corp. | JDG | 50.00 | 80% | 5,000 | 6,750 | 1.4x | 1.4x | 1.3x | 7.5x | 7.1x | 6.6x | 9.3x | 8.8x | 8.2x | 19% | 2.055555556 | 12.9x | 11.2x | 10.0x | 12% | |||||||
| Kumra Inc. | KUM | 52.50 | 88% | 4,852 | 5,345 | 1.7x | 1.7x | 1.5x | 8.0x | 7.9x | 7.4x | 10.6x | 10.4x | 9.7x | 21% | 1.339578956 | 19.5x | 16.6x | 14.4x | 10% | |||||||
| Mean | 1.5x | 1.5x | 1.4x | 7.7x | 7.5x | 7.0x | 9.8x | 9.6x | 9.0x | 20% | 1.9x | 15.1x | 13.8x | 12.4x | 10% | ||||||||||||
| Median | 1.4x | 1.4x | 1.3x | 7.7x | 7.7x | 7.2x | 9.4x | 9.4x | 8.7x | 20% | 1.8x | 13.9x | 13.5x | 12.5x | 10% | ||||||||||||
| Tier II: Commodity / Diversified Chemicals | |||||||||||||||||||||||||||
| Falloon Group | FLN | $31.00 | 87% | $7,480 | $11,254 | 1.0x | 1.0x | 0.9x | 6.9x | 7.0x | 6.7x | 10.8x | 11.0x | 10.5x | 14% | 2.502536702 | 16.1x | 15.0x | 13.1x | 5% | |||||||
| Goodson Corp. | GDS | 64.00 | 83% | 4,160 | 5,660 | 1.2x | 1.2x | 1.1x | 7.4x | 7.5x | 7.2x | 10.8x | 11.0x | 10.4x | 16% | 2.948495974 | 19.5x | 18.6x | 16.3x | 9% | |||||||
| Pryor Industries | PRI | 79.00 | 88% | 3,926 | 4,166 | 1.1x | 1.2x | 1.1x | 7.3x | 7.4x | 7.1x | 9.9x | 10.1x | 9.6x | 15% | 1.125982565 | 17.3x | 16.9x | 15.4x | 10% | |||||||
| Lanzarone Global | LNZ | 32.25 | 95% | 3,230 | 3,823 | 1.0x | 1.0x | 1.0x | 6.6x | 6.7x | 6.4x | 8.9x | 9.0x | 8.6x | 16% | 1.340608454 | 13.9x | 12.9x | 11.7x | 8% | |||||||
| McMenamin & Co. | MCM | 33.50 | 80% | 3,193 | 3,193 | 1.0x | 0.9x | 0.8x | 9.0x | 8.4x | 7.5x | 14.2x | 13.1x | 11.8x | 11% | 1.156379084 | 26.8x | 23.3x | 20.3x | 12% | |||||||
| Mean | 1.1x | 1.1x | 1.0x | 7.4x | 7.4x | 7.0x | 10.9x | 10.8x | 10.2x | 14% | 1.8x | 18.7x | 17.3x | 15.3x | 9% | ||||||||||||
| Median | 1.0x | 1.0x | 1.0x | 7.3x | 7.4x | 7.1x | 10.8x | 11.0x | 10.4x | 15% | 1.3x | 17.3x | 16.9x | 15.4x | 9% | ||||||||||||
| Tier III: Small-Cap Chemicals | |||||||||||||||||||||||||||
| S. Momper & Co. | MOMP | $28.00 | 95% | $2,240 | $2,921 | 1.4x | 1.4x | 1.2x | 7.7x | 7.4x | 6.7x | 9.9x | 9.5x | 8.6x | 18% | 2.643096794 | 17.2x | 17.5x | 16.2x | 5% | |||||||
| Adler Worldwide | ADL | 10.50 | 80% | 1,217 | 1,463 | 0.9x | 1.0x | 0.9x | 6.0x | 6.1x | 5.8x | 8.0x | 8.1x | 7.7x | 16% | 1.64504059 | 13.7x | 14.8x | 13.7x | 7% | |||||||
| Schachter & Sons | STM | 4.50 | 89% | 1,125 | 1,674 | 1.0x | 0.9x | 0.8x | 7.0x | 6.5x | 5.7x | 9.8x | 9.1x | 7.9x | 14% | 2.490919505 | 14.8x | 13.6x | 12.2x | 11% | |||||||
| Girshin Holdings | MGP | 50.00 | 67% | 1,035 | 1,298 | 0.8x | 0.8x | 0.7x | 7.3x | 6.8x | 6.1x | 11.5x | 10.7x | 9.7x | 11% | 1.757896375 | 20.0x | 18.9x | 17.2x | 8% | |||||||
| Crespin International | MCR | 27.00 | 80% | 872 | 1,222 | 0.8x | 0.8x | 0.7x | 6.4x | 6.0x | 5.4x | 9.2x | 8.6x | 7.7x | 13% | 2.0779523 | 14.2x | 14.0x | 12.7x | 6% | |||||||
| Mean | 1.0x | 1.0x | 0.9x | 6.9x | 6.6x | 5.9x | 9.7x | 9.2x | 8.3x | 14% | 2.1x | 16.0x | 15.7x | 14.4x | 7% | ||||||||||||
| Median | 0.9x | 0.9x | 0.8x | 7.0x | 6.5x | 5.8x | 9.8x | 9.1x | 7.9x | 14% | 2.1x | 14.8x | 14.8x | 13.7x | 7% | ||||||||||||
| Overall | |||||||||||||||||||||||||||
| Mean | 1.1x | 1.1x | 1.0x | 7.3x | 7.2x | 6.7x | 10.3x | 10.0x | 9.3x | 16% | 1.9x | 17.0x | 16.0x | 14.4x | 9% | ||||||||||||
| Median | 1.0x | 1.0x | 1.0x | 7.3x | 7.4x | 6.7x | 9.9x | 9.8x | 9.2x | 16% | 1.8x | 16.6x | 15.8x | 14.1x | 9% | ||||||||||||
| High | 1.8x | 1.7x | 1.6x | 9.0x | 8.4x | 7.5x | 14.2x | 13.1x | 11.8x | 22% | 3.0x | 26.8x | 23.3x | 20.3x | 12% | ||||||||||||
| Low | 0.8x | 0.8x | 0.7x | 6.0x | 6.0x | 5.4x | 8.0x | 8.1x | 7.7x | 11% | 1.1x | 12.9x | 11.2x | 10.0x | 5% | ||||||||||||
| Source: Company filings, Bloomberg, Consensus Estimates | |||||||||||||||||||||||||||
| Note: Last twelve months data based on September 30, 2012. Estimated annual financial data based on a calendar year. |
VLCO
| ValueCo Corporation (NA:NA) | Business Description | ||||||||||||||||||
| Input Page | Manufactures specialty chemicals and materials for the aerospace, automotive, and building products end markets | ||||||||||||||||||
| ($ in millions, except per share data) | |||||||||||||||||||
| General Information | Reported Income Statement | Balance Sheet Data | |||||||||||||||||
| Company Name | ValueCo Corporation | Prior | Current | 2011\AM | 9/30/2012 | ||||||||||||||
| Ticker | NA | Fiscal Year Ending December 31, | Stub | Stub | LTM | Cash and Cash Equivalents | $219.8 | $183.1 | |||||||||||
| Stock Exchange | NA | 2009\AM | 2010\AM | 2011\AM | 9/30/2011 | 9/30/2012 | 9/30/12 | Accounts Receivable | 417.4 | 441.5 | |||||||||
| Fiscal Year Ending | Dec-31 | Sales | $2,600.0 | $2,900.0 | $3,200.0 | $2,400.0 | $2,585.0 | $3,385.0 | Inventories | 556.5 | 588.4 | ||||||||
| Moody's Corporate Rating | NA | COGS (incl. D&A) | 1,767.0 | 1,934.0 | 2,113.0 | 1,583.0 | 1,700.0 | 2,230.0 | Prepaids and Other Current Assets | 162.3 | 171.7 | ||||||||
| S&P Corporate Rating | NA | Gross Profit | $833.0 | $966.0 | $1,087.0 | $817.0 | $885.0 | $1,155.0 | Total Current Assets | $1,356.0 | $1,384.8 | ||||||||
| Predicted Beta | NA | SG&A | 494.0 | 553.9 | 614.4 | 489.4 | 530.0 | 655.0 | |||||||||||
| Marginal Tax Rate | 38.0% | Other Expense / (Income) | -0 | -0 | -0 | -0 | -0 | -0 | Property, Plant and Equipment, net | 2,564.6 | 2,501.3 | ||||||||
| EBIT | $339.0 | $412.1 | $472.6 | $327.6 | $355.0 | $500.0 | Goodwill and Intangible Assets | 1,926.8 | 1,891.8 | ||||||||||
| Selected Market Data | Interest Expense | 125.0 | 115.0 | 102.5 | 77.5 | 75.0 | 100.0 | Other Assets | 150.0 | 150.0 | |||||||||
| Current Price | -0 | Pre-tax Income | $214.0 | $297.1 | $370.1 | $250.1 | $280.0 | $400.0 | Total Assets | $5,997.4 | $5,927.8 | ||||||||
| % of 52-week High | NA | Income Taxes | 81.3 | 112.9 | 140.6 | 95.0 | 106.4 | 152.0 | |||||||||||
| 52-week High Price | -0 | Noncontrolling Interest | -0 | -0 | -0 | -0 | -0 | -0 | Accounts Payable | 199.4 | 210.8 | ||||||||
| 52-week Low Price | -0 | Preferred Dividends | -0 | -0 | -0 | -0 | -0 | -0 | Accrued Liabilities | 255.1 | 269.8 | ||||||||
| Dividend Per Share (MRQ) | -0 | Net Income | $132.7 | $184.2 | $229.5 | $155.1 | $173.6 | $248.0 | Other Current Liabilities | 92.8 | 98.1 | ||||||||
| Effective Tax Rate | 38.0% | 38.0% | 38.0% | 38.0% | 38.0% | 38.0% | Total Current Liabilities | $547.2 | $578.8 | ||||||||||
| Fully Diluted Shares Outstanding | -0 | ||||||||||||||||||
| Equity Value | -0 | Weighted Avg. Diluted Shares | -0 | -0 | -0 | -0 | -0 | -0 | Total Debt | 1,800.0 | 1,500.0 | ||||||||
| Diluted EPS | NA | NA | NA | NA | NA | NA | Other Long-Term Liabilities | 410.0 | 410.0 | ||||||||||
| Plus: Total Debt | -0 | Total Liabilities | $2,757.2 | $2,488.8 | |||||||||||||||
| Plus: Preferred Stock | -0 | Adjusted Income Statement | |||||||||||||||||
| Plus: Noncontrolling Interest | -0 | Reported Gross Profit | $833.0 | $966.0 | $1,087.0 | $817.0 | $885.0 | $1,155.0 | Noncontrolling Interest | -0 | -0 | ||||||||
| Less: Cash and Cash Equivalents | -0 | Non-recurring Items in COGS | -0 | -0 | -0 | -0 | -0 | -0 | Preferred Stock | -0 | -0 | ||||||||
| Enterprise Value | -0 | Adj. Gross Profit | $833.0 | $966.0 | $1,087.0 | $817.0 | $885.0 | $1,155.0 | Shareholders' Equity | 3,240.2 | 3,439.1 | ||||||||
| % margin | 32.0% | 33.3% | 34.0% | 34.0% | 34.2% | 34.1% | Total Liabilities and Equity | $5,997.4 | $5,927.8 | ||||||||||
| Trading Multiples | |||||||||||||||||||
| LTM | NFY | NFY+1 | NFY+2 | Reported EBIT | $339.0 | $412.1 | $472.6 | $327.6 | $355.0 | $500.0 | Balance Check | 0.000 | 0.000 | ||||||
| 9/30/12 | 41273.0 | 41638.0 | 42003.0 | Non-recurring Items in COGS | -0 | -0 | -0 | -0 | -0 | -0 | |||||||||
| EV / Sales | -0 | -0 | -0 | -0 | Other Non-recurring Items | -0 | -0 | -0 | -0 | -0 | -0 | ||||||||
| Metric | $3,385.0 | $3,500.0 | $3,780.0 | $4,006.8 | Adjusted EBIT | $339.0 | $412.1 | $472.6 | $327.6 | $355.0 | $500.0 | Calculation of Fully Diluted Shares Outstanding | |||||||
| EV / EBITDA | -0 | -0 | -0 | -0 | % margin | 13.0% | 14.2% | 14.8% | 13.6% | 13.7% | 14.8% | Basic Shares Outstanding | -0 | ||||||
| Metric | $700.0 | $725.0 | $779.4 | $826.1 | Plus: Shares from In-the-Money Options | -0 | |||||||||||||
| EV / EBIT | -0 | -0 | -0 | -0 | Depreciation & Amortization | 155.0 | 165.0 | 193.0 | 143.0 | 150.0 | 200.0 | Less: Shares Repurchased | -0 | ||||||
| Metric | $500.0 | $525.0 | $567.0 | $601.0 | Adjusted EBITDA | $494.0 | $577.1 | $665.6 | $470.6 | $505.0 | $700.0 | Net New Shares from Options | -0 | ||||||
| P/E | NA | NA | NA | NA | % margin | 19.0% | 19.9% | 20.8% | 19.6% | 19.5% | 20.7% | Plus: Shares from Convertible Securities | -0 | ||||||
| Metric | -0 | -0 | -0 | -0 | Fully Diluted Shares Outstanding | -0 | |||||||||||||
| P / FCF | NA | NA | NA | NA | Reported Net Income | $132.7 | $184.2 | $229.5 | $155.1 | $173.6 | $248.0 | ||||||||
| FCF Yield | NA | NA | NA | NA | Non-recurring Items in COGS | -0 | -0 | -0 | -0 | -0 | -0 | Options/Warrants | |||||||
| Metric | $174.3 | -0 | -0 | -0 | Other Non-recurring Items | -0 | -0 | -0 | -0 | -0 | -0 | Number of | Exercise | In-the-Money | |||||
| Non-operating Non-rec. Items | -0 | -0 | -0 | -0 | -0 | -0 | Tranche | Shares | Price | Shares | Proceeds | ||||||||
| LTM Return on Investment Ratios | Tax Adjustment | -0 | -0 | -0 | -0 | -0 | -0 | Tranche 1 | -0 | -0 | -0 | -0 | |||||||
| Return on Invested Capital | 10.4% | Adjusted Net Income | $132.7 | $184.2 | $229.5 | $155.1 | $173.6 | $248.0 | Tranche 2 | -0 | -0 | -0 | -0 | ||||||
| Return on Equity | 7.4% | % margin | 5.1% | 6.4% | 7.2% | 6.5% | 6.7% | 7.3% | Tranche 3 | -0 | -0 | -0 | -0 | ||||||
| Return on Assets | 4.2% | Tranche 4 | -0 | -0 | -0 | -0 | |||||||||||||
| Implied Annual Dividend Per Share | NA | Adjusted Diluted EPS | -0 | -0 | -0 | -0 | -0 | -0 | Tranche 5 | -0 | -0 | -0 | -0 | ||||||
| Total | -0 | -0 | -0 | ||||||||||||||||
| LTM Credit Statistics | Cash Flow Statement Data | ||||||||||||||||||
| Debt/Total Capitalization | 30.4% | Cash From Operations | 198.0 | 231.7 | 321.0 | 274.3 | 279.9 | 326.6 | Convertible Securities | ||||||||||
| Total Debt/EBITDA | 2.1x | Capital Expenditures | 114.4 | 116.0 | 144.0 | 108.0 | 116.3 | 152.3 | Conversion | Conversion | New | ||||||||
| Net Debt/EBITDA | 1.9x | % sales | 4.4% | 4.0% | 4.5% | 4.5% | 4.5% | 4.5% | Amount | Price | Ratio | Shares | |||||||
| EBITDA/Interest Expense | 7.0x | Free Cash Flow | $83.6 | $115.7 | $177.0 | $166.3 | $163.6 | $174.3 | Issue 1 | -0 | -0 | -0 | -0 | ||||||
| (EBITDA-capex)/Interest Expense | 5.5x | % margin | 3.2% | 4.0% | 5.5% | 6.9% | 6.3% | 5.1% | Issue 2 | -0 | -0 | -0 | -0 | ||||||
| EBIT/Interest Expense | 5.0x | FCF / Share | -0 | -0 | -0 | -0 | -0 | -0 | Issue 3 | -0 | -0 | -0 | -0 | ||||||
| Issue 4 | -0 | -0 | -0 | -0 | |||||||||||||||
| Growth Rates | Depreciation & Amortization | 155.0 | 165.0 | 193.0 | 143.0 | 150.0 | 200.0 | Issue 5 | -0 | -0 | -0 | -0 | |||||||
| Sales | EBITDA | FCF | EPS | % sales | 6.0% | 5.7% | 6.0% | 6.0% | 5.8% | 5.9% | Total | -0 | |||||||
| Historical | |||||||||||||||||||
| 1-year | 10.3% | 15.3% | 53.0% | -0 | Notes | ||||||||||||||
| 2-year CAGR | 10.9% | 16.1% | 45.5% | -0 | (1) [to come] | ||||||||||||||
| Estimated | (2) [to come] | ||||||||||||||||||
| 1-year | 9.4% | 8.9% | NA | -0 | (3) [to come] | ||||||||||||||
| 2-year CAGR | 8.7% | 8.2% | NA | -0 | (4) [to come] | ||||||||||||||
| Long-term | NA | (5) [to come] |
JDG
| Gasparro Corp. (NYSE:JDG) | Business Description | ||||||||||||||||||
| Input Page | Develops various chemical products for use in crop protection, pharmaceuticals, and electronics applications | ||||||||||||||||||
| ($ in millions, except per share data) | |||||||||||||||||||
| General Information | Reported Income Statement | Balance Sheet Data | |||||||||||||||||
| Company Name | Gasparro Corp. | Prior | Current | 2011\AM | 9/30/2012 | ||||||||||||||
| Ticker | JDG | Fiscal Year Ending December 31, | Stub | Stub | LTM | Cash and Cash Equivalents | $75.0 | $100.0 | |||||||||||
| Stock Exchange | NYSE | 2009\AM | 2010\AM | 2011\AM | 9/30/2011 | 9/30/2012 | 9/30/12 | Accounts Receivable | 625.0 | 650.0 | |||||||||
| Fiscal Year Ending | Dec-31 | Sales | $3,750.0 | $4,150.0 | $4,500.0 | $3,375.0 | $3,600.0 | $4,725.0 | Inventories | 730.0 | 750.0 | ||||||||
| Moody's Corporate Rating | Baa3 | COGS (incl. D&A) | 2,450.0 | 2,700.0 | 2,925.0 | 2,200.0 | 2,350.0 | 3,075.0 | Prepaids and Other Current Assets | 225.0 | 250.0 | ||||||||
| S&P Corporate Rating | BBB- | Gross Profit | $1,300.0 | $1,450.0 | $1,575.0 | $1,175.0 | $1,250.0 | $1,650.0 | Total Current Assets | $1,655.0 | $1,750.0 | ||||||||
| Predicted Beta | 1.25 | SG&A | 750.0 | 830.0 | 900.0 | 675.0 | 720.0 | 945.0 | |||||||||||
| Marginal Tax Rate | 38.0% | Other Expense / (Income) | -0 | -0 | -0 | -0 | -0 | -0 | Property, Plant and Equipment, net | 1,970.0 | 2,000.0 | ||||||||
| EBIT | $550.0 | $620.0 | $675.0 | $500.0 | $530.0 | $705.0 | Goodwill and Intangible Assets | 775.0 | 800.0 | ||||||||||
| Selected Market Data | Interest Expense | 110.0 | 105.0 | 102.0 | 75.0 | 73.0 | 100.0 | Other Assets | 425.0 | 450.0 | |||||||||
| Current Price | 12/20/2012 | $50.00 | Pre-tax Income | $440.0 | $515.0 | $573.0 | $425.0 | $457.0 | $605.0 | Total Assets | $4,825.0 | $5,000.0 | |||||||
| % of 52-week High | 80.0% | Income Taxes | 167.2 | 195.7 | 217.7 | 161.5 | 173.7 | 229.9 | |||||||||||
| 52-week High Price | 7/20/2012 | 62.50 | Noncontrolling Interest | -0 | -0 | -0 | -0 | -0 | -0 | Accounts Payable | 275.0 | 300.0 | |||||||
| 52-week Low Price | 4/5/2012 | 40.00 | Preferred Dividends | -0 | -0 | -0 | -0 | -0 | -0 | Accrued Liabilities | 450.0 | 475.0 | |||||||
| Dividend Per Share (MRQ) | 0.25 | Net Income | $272.8 | $319.3 | $355.3 | $263.5 | $283.3 | $375.1 | Other Current Liabilities | 125.0 | 150.0 | ||||||||
| Effective Tax Rate | 38.0% | 38.0% | 38.0% | 38.0% | 38.0% | 38.0% | Total Current Liabilities | $850.0 | $925.0 | ||||||||||
| Fully Diluted Shares Outstanding | 100.000 | ||||||||||||||||||
| Equity Value | $5,000.0 | Weighted Avg. Diluted Shares | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | Total Debt | 1,875.0 | 1,850.0 | ||||||||
| Diluted EPS | $2.73 | $3.19 | $3.55 | $2.64 | $2.83 | $3.75 | Other Long-Term Liabilities | 500.0 | 500.0 | ||||||||||
| Plus: Total Debt | 1,850.0 | Total Liabilities | $3,225.0 | $3,275.0 | |||||||||||||||
| Plus: Preferred Stock | -0 | Adjusted Income Statement | |||||||||||||||||
| Plus: Noncontrolling Interest | -0 | Reported Gross Profit | $1,300.0 | $1,450.0 | $1,575.0 | $1,175.0 | $1,250.0 | $1,650.0 | Noncontrolling Interest | -0 | -0 | ||||||||
| Less: Cash and Cash Equivalents | (100.0) | Non-recurring Items in COGS | -0 | -0 | -0 | -0 | 30.0 | 30.0 | (1) | Preferred Stock | -0 | -0 | |||||||
| Enterprise Value | $6,750.0 | Adj. Gross Profit | $1,300.0 | $1,450.0 | $1,575.0 | $1,175.0 | $1,280.0 | $1,680.0 | Shareholders' Equity | 1,600.0 | 1,725.0 | ||||||||
| % margin | 34.7% | 34.9% | 35.0% | 34.8% | 35.6% | 35.6% | Total Liabilities and Equity | $4,825.0 | $5,000.0 | ||||||||||
| Trading Multiples | |||||||||||||||||||
| LTM | NFY | NFY+1 | NFY+2 | Reported EBIT | $550.0 | $620.0 | $675.0 | $500.0 | $530.0 | $705.0 | Balance Check | 0.000 | 0.000 | ||||||
| 9/30/12 | 41273.0 | 41638.0 | 42003.0 | Non-recurring Items in COGS | -0 | -0 | -0 | -0 | 30.0 | 30.0 | |||||||||
| EV / Sales | 1.4x | 1.4x | 1.3x | 1.2x | Other Non-recurring Items | -0 | -0 | (25.0) | -0 | 15.0 | (10.0) | (2), (3) | |||||||
| Metric | $4,725.0 | $5,000.0 | $5,350.0 | $5,625.0 | Adjusted EBIT | $550.0 | $620.0 | $650.0 | $500.0 | $575.0 | $725.0 | Calculation of Fully Diluted Shares Outstanding | |||||||
| EV / EBITDA | 7.5x | 7.1x | 6.6x | 6.3x | % margin | 14.7% | 14.9% | 14.4% | 14.8% | 16.0% | 15.3% | Basic Shares Outstanding | 98.500 | ||||||
| Metric | $900.0 | $950.0 | $1,025.0 | $1,075.0 | Plus: Shares from In-the-Money Options | 2.750 | |||||||||||||
| EV / EBIT | 9.3x | 8.8x | 8.2x | 7.8x | Depreciation & Amortization | 155.0 | 165.0 | 175.0 | 125.0 | 125.0 | 175.0 | Less: Shares Repurchased | (1.250) | ||||||
| Metric | $725.0 | $765.0 | $825.0 | $865.0 | Adjusted EBITDA | $705.0 | $785.0 | $825.0 | $625.0 | $700.0 | $900.0 | Net New Shares from Options | 1.500 | ||||||
| P/E | 12.9x | 11.2x | 10.0x | 9.1x | % margin | 18.8% | 18.9% | 18.3% | 18.5% | 19.4% | 19.0% | Plus: Shares from Convertible Securities | -0 | ||||||
| Metric | $3.88 | $4.45 | $5.00 | $5.50 | Fully Diluted Shares Outstanding | 100.000 | |||||||||||||
| FCF Yield | 6.3% | 7.0% | 7.5% | 8.3% | Reported Net Income | $272.8 | $319.3 | $355.3 | $263.5 | $283.3 | $375.1 | ||||||||
| Metric | $315.0 | $350.0 | $375.0 | $415.0 | Non-recurring Items in COGS | -0 | -0 | -0 | -0 | 30.0 | 30.0 | Options/Warrants | |||||||
| Other Non-recurring Items | -0 | -0 | (25.0) | -0 | 15.0 | (10.0) | Number of | Exercise | In-the-Money | ||||||||||
| LTM Return on Investment Ratios | Non-operating Non-rec. Items | -0 | -0 | -0 | -0 | -0 | -0 | Tranche | Shares | Price | Shares | Proceeds | |||||||
| Return on Invested Capital | 21.1% | Tax Adjustment | -0 | -0 | 9.5 | -0 | (17.1) | (7.6) | Tranche 1 | 1.250 | $10.00 | 1.250 | $12.5 | ||||||
| Return on Equity | 23.3% | Adjusted Net Income | $272.8 | $319.3 | $339.8 | $263.5 | $311.2 | $387.5 | Tranche 2 | 1.000 | 30.00 | 1.000 | 30.0 | ||||||
| Return on Assets | 7.9% | % margin | 7.3% | 7.7% | 7.6% | 7.8% | 8.6% | 8.2% | Tranche 3 | 0.500 | 40.00 | 0.500 | 20.0 | ||||||
| Implied Annual Dividend Per Share | 2.0% | Tranche 4 | 0.250 | 60.00 | -0 | -0 | |||||||||||||
| Adjusted Diluted EPS | $2.73 | $3.19 | $3.40 | $2.64 | $3.11 | $3.88 | Tranche 5 | -0 | -0 | -0 | -0 | ||||||||
| LTM Credit Statistics | Total | 3.000 | 2.750 | $62.5 | |||||||||||||||
| Debt/Total Capitalization | 51.7% | Cash Flow Statement Data | |||||||||||||||||
| Total Debt/EBITDA | 2.1x | Cash From Operations | 400.0 | 450.0 | 500.0 | 360.0 | 380.0 | 520.0 | Convertible Securities | ||||||||||
| Net Debt/EBITDA | 1.9x | Capital Expenditures | 170.0 | 185.0 | 200.0 | 150.0 | 155.0 | 205.0 | Conversion | Conversion | New | ||||||||
| EBITDA/Interest Expense | 9.0x | % sales | 4.5% | 4.5% | 4.4% | 4.4% | 4.3% | 4.3% | Amount | Price | Ratio | Shares | |||||||
| (EBITDA-capex)/Interest Expense | 7.0x | Free Cash Flow | $230.0 | $265.0 | $300.0 | $210.0 | $225.0 | $315.0 | Issue 1 | -0 | -0 | -0 | -0 | ||||||
| EBIT/Interest Expense | 7.3x | % margin | 6.1% | 6.4% | 6.7% | 6.2% | 6.3% | 6.7% | Issue 2 | -0 | -0 | -0 | -0 | ||||||
| FCF / Share | $2.30 | $2.65 | $3.00 | $2.10 | $2.25 | $3.15 | Issue 3 | -0 | -0 | -0 | -0 | ||||||||
| Growth Rates | Issue 4 | -0 | -0 | -0 | -0 | ||||||||||||||
| Sales | EBITDA | FCF | EPS | Depreciation & Amortization | 155.0 | 165.0 | 175.0 | 125.0 | 125.0 | 175.0 | Issue 5 | -0 | -0 | -0 | -0 | ||||
| Historical | % sales | 4.1% | 4.0% | 3.9% | 3.7% | 3.5% | 3.7% | Total | -0 | ||||||||||
| 1-year | 8.4% | 5.1% | 13.2% | 6.4% | |||||||||||||||
| 2-year CAGR | 9.5% | 8.2% | 14.2% | 11.6% | Notes | ||||||||||||||
| Estimated | (1) In Q2 2012, Gasparro Corp. recorded a $30 million pre-tax inventory valuation charge related to product obsolescence (see Q2 2012 10-Q MD&A, page 14). | ||||||||||||||||||
| 1-year | 11.1% | 15.2% | 16.7% | 31.0% | (2) In Q4 2011, Gasparro Corp. realized a $25 million pre-tax gain on the sale of a non-core business (see 2011 10-K MD&A, page 45). | ||||||||||||||
| 2-year CAGR | 9.0% | 11.5% | 11.8% | 21.3% | (3) In Q3 2012, Gasparro Corp. recognized $15 million of pre-tax restructuring costs in connection with the closure of a manufacturing facility (see Q3 2012 10-Q MD&A, page 15). | ||||||||||||||
| Long-term | 12.0% |
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