abels joyg
TRANSCRIPT
![Page 1: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/1.jpg)
Kevin AbelsNASDAQ: JOYG
Joy Global Inc..
![Page 2: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/2.jpg)
• Company Description• Sources of Revenue• Porter’s 5 Forces• SWOT Analysis• Competitors• Key Drivers• Stats• Valuation• Conclusion
Presentation Outline
![Page 3: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/3.jpg)
•Joy Global manufactures mining equipment used to extract coal, copper, iron ore, and many other minerals and bedded materials. •Joy Global is comprised of three market-leading businesses
• P&H Mining Equipment, •Joy Mining Machinery•Continental Crushing and Conveying.
Company Description
![Page 4: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/4.jpg)
Company Description
• Founded in the late 19th century
• Headquartered in Milwaukee, Wisconsin
• Employs more than 10,000 personnel worldwide
![Page 5: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/5.jpg)
Sources of Revenue
![Page 6: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/6.jpg)
Sources of Revenue
Annual Sales
• Approximately 60% of revenues originate from aftermarket services
• Stability to revenues/profits
• Creates customer preference
![Page 7: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/7.jpg)
Porter’s Five Forces
![Page 8: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/8.jpg)
• Several dominant players• Joy Global• Bucyrus• Terex
• Differentiated by service/support
• All are global players
Degree of Rivalry - Medium
![Page 9: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/9.jpg)
• Capital intensive industry
• Big players dominate market
• Not a fragmented industry
Potential of New Entrants-Low
![Page 10: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/10.jpg)
Suppliers have minimal power over industry players
Commodity nature of supplies limits power
Power of Suppliers-Low
![Page 11: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/11.jpg)
Power of Customers-Medium
• Relatively low, but considerable, switching cost
• Little product/service differentiation
![Page 12: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/12.jpg)
Threat of Substitutes-Low
• Very few substitution products
![Page 13: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/13.jpg)
![Page 14: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/14.jpg)
• Strong market position – Highly exposed to emerging markets (China Mining Machinery)
• Financial stability
• Strong backlogs that extend out for several years
• A majority of revenues come from aftermarket parts and services – Tied to production levels and have been historically stable in economic turmoil
Strengths
![Page 15: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/15.jpg)
• Majority of revenue is derived from the US market where industrialization is declining
• Financial performance is heavily dependant upon commodity prices – specifically coal, copper, and iron ore
Weaknesses
![Page 16: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/16.jpg)
• China
• Other emerging markets
Opportunities
![Page 17: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/17.jpg)
• Possible trend of moving toward natural gas to provide energy solutions
• Eventual economic slowdown in China
• New competitors will arise in the emerging markets
• Alternative energy
Threats
![Page 18: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/18.jpg)
Company PE ttm EPS ttm Net Margin Debt/Asset
Joy Global Inc 10.98 4.32 13% 19.32
Bucyrus 10.04 3.57 11.36% 22.44
Terex - -5.07 -5.89% 32.30
Competitors
*Most Recent Quarter
![Page 19: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/19.jpg)
Key Drivers
![Page 20: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/20.jpg)
Key Drivers
• China/Emerging Markets – Early on a Long Journey
• Currently in restocking phase
• China positioned to lead the global economic recovery
![Page 21: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/21.jpg)
Key DriversCoal Consumption by Country Grouping
![Page 22: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/22.jpg)
• Market Cap: $4.86B
• P/E: 10.98
• ROA: 17.67
• ROE: 62.37
Stats
![Page 23: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/23.jpg)
Valuation
![Page 24: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/24.jpg)
Valuation
• Price – $47.45• Yr Range - $14.33 – $56.07
![Page 25: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/25.jpg)
Valuation Assumptions
![Page 26: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/26.jpg)
Conclusion
![Page 27: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/27.jpg)
![Page 28: Abels Joyg](https://reader034.vdocument.in/reader034/viewer/2022042518/5587554cd8b42a803c8b45a0/html5/thumbnails/28.jpg)