consumer staples company presentation chad hackett adam gale
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Consumer Staples Company Presentation
Chad HackettAdam Gale
Consumer Staples Analysis
+ Dividends, Dividend yield is higher than S&P 500
- Earnings are declining relative to S&P 500
- Growing economy – Sector performs poorly during growth relative to S&P 500
Consumer Staples CompositionSIM Companies Procter & Gamble, 4.20% (Household
Products) Walgreens, 2.11% (Retail Drugs) Anheuser-Busch, 3.94% (Beverage -
Alcoholic)
Procter & Gamble
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
PROCTER & GAMBLE COMPANY (PG)PRICE 54.6 DATE 11-12-2004StockVal®
1111
1313
1515
17171919
2222
2626
3030
3434
3939
4545
5252
60
69
80
The Ohio State UniversityFisher College of Business
Price Change % Diff SP5
1-Day 1.11 0.20
1-Week 2.02 0.47
4-Weeks 1.69 -5.16
QTD 0.89 -5.36
YTD 9.33 2.83
2003 16.22 -10.16
2002 8.61 31.97
2001 0.88 13.92 FYE Jun 2004 EPS 2.33
First Call Data 2005 2006 2007
Mean Estimate 2.59 2.87 3.20
Change +11% +11% +11%
High 2.61 2.91 3.27
Low 2.56 2.84 3.12
Total 16 14 4
# Up 14 6 3
# Down 1 1 0
House Estimate
PE Ratio 21.1 19.0 17.1
Revenues ($Mil) 52,956
Market Value ($Mil) 138,503
Shares Out (Mil) 2,536.7
Daily Volume (Thou) 5,393
Daily Volume ($Mil) 294.4
Dividend Estimate 1.00
Payout Ratio 39%
Retention Rate 61%
Dividend Yield 1.83%
Data Page # 1
Business Analysis Businesses
Baby, feminine & family care Fabric & home care Health care Beauty care Food & beverage
Main Brands Pampers, Always Tide, Bounty, Downy Crest, Pepto Bismol Cover Girl, Pantene, Herbal
Essences Folgers, Pringles
Business: Demand
Expected EPS for 2005 : $2.59 11% increase from 2004
Solid marketing and product innovation skills
Established brand recognition both domestic and international
Constant demand for P&G products
Business: Supply
P&G’s growth for the future relies on foreign acquisitions and internal expansion overseas i.e. Wella AG acquisition in 2003
India and China remain strong growth drivers
Increased business in health and beauty-care by purchasing Clairol
DuPont AnalyticsPROCTER & GAMBLE COMPANY (PG) StockVal ®
Price 54.600 11/12/04 FYE Jun INT TAX ASSET
MARGIN% BURDEN BURDEN% TURN LEVERAGE
EBIT EBT T Sales Assets
------- ------- 1 - ---- ------- ------- ROE Acct ROE
Sales EBIT EBT Assets Equity Rpt% Adj% Adj%
2004 19.41 0.94 69.32 1.02 3.01 38.73 0.00 38.73
2003 18.65 0.93 68.87 1.03 2.83 34.70 3.60 38.30
2002 17.36 0.91 68.18 1.07 2.92 33.85 5.49 39.34
2001 13.79 0.85 63.30 1.14 2.83 24.05 12.14 36.19
2000 15.66 0.88 63.98 1.20 2.73 29.10 5.65 34.75
1999 17.02 0.90 64.46 1.21 2.60 30.98 3.17 34.15
1998 16.84 0.91 66.22 1.27 2.41 31.13 0.00 31.13
1997 15.95 0.92 65.06 1.29 2.33 28.74 0.00 28.74
1996 14.60 0.91 65.24 1.26 2.50 27.30 0.00 27.30
1995 13.40 0.89 66.13 1.25 2.76 27.24 0.51 27.75
1994 12.60 0.87 66.08 1.20 3.10 27.17 1.26 28.43
1993 2.96 0.39 77.08 1.24 2.97 -7.95 32.36 24.41
1992 11.56 0.85 64.89 1.32 2.65 22.28 -0.73 21.55
1991 11.40 0.87 65.98 1.39 2.55 23.25 0.00 23.25
1990 11.89 0.85 66.17 1.38 2.54 23.33 1.17 24.50
1989 10.89 0.83 62.20 1.37 2.48 19.22 1.24 20.46
1988 10.09 0.84 62.58 1.36 2.31 16.55 0.00 16.55
1987 5.71 0.64 53.00 1.27 2.24 5.48 7.68 13.16
Financial: DuPont Analysis
Valuation AnalysisStockVal®PROCTER & GAMBLE COMPANY (PG) Price 54.6
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
PRICE / YEAR-FORWARD EARNINGS14
21
28
35 HI 39.0 LO 16.0 ME 20.9 CU 20.3
11-11-199411-12-2004
PRICE / SALES1
2
3
4 HI 4.30 LO 1.44 ME 2.87 CU 2.87
11-11-199411-12-2004
NET PROFIT MARGIN ADJUSTED %6
8
10
12 HI 13.2 LO 7.8 ME 10.6 CU 12.7
12-31-199409-30-2004
GROWTH RATE ESTIMATE10
11
12
13 HI 14.00 LO 10.00 ME 12.00 CU 11.00
11-11-199411-12-2004
StockVal®PROCTER & GAMBLE COMPANY (PG) Price 54.61994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
PRICE / YEAR-FORWARD EARNINGS RELATIVE TO S&P CONS. STAPLES SECTOR COMPOSITE A (SP-30)0.6
0.9
1.2
1.5 HI 1.61 LO 0.81 ME 1.07 CU 1.16
11-11-199411-12-2004
PRICE / SALES RELATIVE TO S&P CONS. STAPLES SECTOR COMPOSITE A (SP-30) M-Wtd1.2
1.6
2.0
2.4 HI 2.60 LO 1.33 ME 1.90 CU 2.36
11-11-199411-12-2004
PRE-TAX MARGIN RELATIVE TO S&P CONS. STAPLES SECTOR COMPOSITE A (SP-30) M-Wtd1.2
1.5
1.8
2.1 HI 2.24 LO 1.36 ME 1.71 CU 2.16
12-31-199409-30-2004
GROWTH RATE ESTIMATE RELATIVE TO S&P CONS. STAPLES SECTOR COMPOSITE A (SP-30) M-Wtd0.7
0.8
0.9
1.0 HI 1.08 LO 0.79 ME 0.91 CU 1.02
11-11-199411-12-2004
Valuation Analysis
Recommendation
Hold Procter & Gamble. Remaining a strong player in the
consumer staples sector Internal growth abroadForeign market expansion through acquisition
James Gamble - 1837 William Proctor – 1837
Anheuser-Busch
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
ANHEUSER-BUSCH COMPANIES INC (BUD)PRICE 51.1 DATE 11-12-2004StockVal®
991010
1212
1414
1616
1919
2222
2626
3030
3535
4141
4848
55
64
75
The Ohio State UniversityFisher College of Business
Price Change % Diff SP5
1-Day 0.69 -0.22
1-Week 0.99 -0.55
4-Weeks 1.11 -5.75
QTD 2.22 -4.02
YTD -3.08 -9.57
2003 8.84 -17.54
2002 7.06 30.42
2001 -0.64 12.41 FYE Dec 2003 EPS 2.48
First Call Data 2004 2005 2006
Mean Estimate 2.74 2.97 3.24Change +10% +8% +9%
High 2.78 3.07 3.32
Low 2.70 2.85 3.19
Total 16 18 5
# Up 0 0 1
# Down 16 16 4
House Estimate
PE Ratio 18.6 17.2 15.8
Revenues ($Mil) 14,783
Market Value ($Mil) 40,341
Shares Out (Mil) 790.1
Daily Volume (Thou) 2,078
Daily Volume ($Mil) 106.1
Dividend Estimate 0.98
Payout Ratio 36%
Retention Rate 64%
Dividend Yield 1.92%
Data Page # 1
Business Analysis Businesses:
Domestic and International Beer
Packaging Theme Parks
Main Products Budweiser Michelob Busch Natural Light
Business: Demand Consumption is up .8% from 2003 International growth has contributed to at least
20% of A-B’s earnings over the past five years Anheuser-Busch and Tsingtao Close China
Investment Agreement Increased profits in China by 45%
Demographics – Growth of the 21 to 27 year old age group
Inelastic demand for alcohol in general
DuPont AnalyticsANHEUSER-BUSCH COMPANIES INC (BUD) StockVal ®
Price 51.060 11/12/04 FYE Dec INT TAX ASSET
MARGIN% BURDEN BURDEN% TURN LEVERAGE
EBIT EBT T Sales Assets
------- ------- 1 - ---- ------- ------- ROE Acct ROE
Sales EBIT EBT Assets Equity Rpt% Adj% Adj%
2003 22.80 0.88 61.29 0.98 5.00 72.03 0.00 72.03
2002 22.06 0.88 60.30 0.97 3.95 54.37 0.00 54.37
2001 21.21 0.87 60.99 0.95 3.31 41.62 0.59 42.21
2000 20.23 0.86 59.89 0.97 3.21 38.55 0.79 39.34
1999 19.47 0.87 60.94 0.94 3.09 34.46 0.00 34.46
1998 18.84 0.86 60.48 0.94 2.94 29.87 0.00 29.87
1997 18.74 0.88 60.97 1.01 2.75 28.97 0.25 29.22
1996 19.35 0.89 61.08 1.04 2.49 28.12 -1.59 26.53
1995 16.17 0.87 60.66 0.99 2.39 14.52 7.76 22.28
1994 18.74 0.88 60.53 0.97 2.40 23.81 -0.41 23.40
1993 14.09 0.85 57.60 0.94 2.28 13.40 7.67 21.07
1992 18.61 0.89 61.85 0.96 2.16 20.26 1.03 21.29
1991 18.57 0.86 62.11 0.96 2.33 23.16 -0.96 22.20
1990 17.63 0.82 62.47 0.99 2.65 24.85 -1.21 23.64
1989 17.49 0.87 62.96 1.00 2.50 24.74 -0.72 24.02
1988 17.08 0.89 62.28 1.12 2.18 23.88 -0.63 23.25
1987 16.93 0.90 57.95 1.15 2.16 22.38 -0.34 22.04
1986 16.15 0.92 54.86 1.19 2.09 20.47 -0.34 20.13
Financial: DuPont Analysis
StockVal®ANHEUSER-BUSCH COMPANIES INC (BUD) Price 51.11994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
PRICE / YEAR-FORWARD EARNINGS12
16
20
24 HI 26.4 LO 12.2 ME 18.9 CU 17.5
11-11-199411-12-2004
PRICE / SALES1
2
3HI 3.72 LO 1.32 ME 2.93 CU 2.81
11-11-199411-12-2004
PRE-TAX MARGIN %14
16
18
20 HI 20.4 LO 14.0 ME 16.9 CU 20.2
12-31-199409-30-2004
GROWTH RATE ESTIMATE8
9
10
11 HI 12.00 LO 8.00 ME 10.00 CU 10.00
11-11-199411-12-2004
Valuation Analysis
Valuation AnalysisStockVal®ANHEUSER-BUSCH COMPANIES INC (BUD) Price 51.1
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
PRICE / YEAR-FORWARD EARNINGS RELATIVE TO S&P CONS. STAPLES SECTOR COMPOSITE A (SP-30)0.6
0.8
1.0HI 1.19 LO 0.60 ME 0.91 CU 1.00
11-11-199411-12-2004
PRICE / SALES RELATIVE TO S&P CONS. STAPLES SECTOR COMPOSITE A (SP-30) M-Wtd1.0
1.5
2.0
2.5 HI 2.86 LO 1.13 ME 1.78 CU 2.32
11-11-199411-12-2004
PRE-TAX MARGIN RELATIVE TO S&P CONS. STAPLES SECTOR COMPOSITE A (SP-30) M-Wtd1.5
1.8
2.1
2.4 HI 2.51 LO 1.67 ME 2.01 CU 2.39
12-31-199409-30-2004
GROWTH RATE ESTIMATE RELATIVE TO S&P CONS. STAPLES SECTOR COMPOSITE A (SP-30) M-Wtd0.4
0.6
0.8
1.0 HI 1.12 LO 0.58 ME 0.77 CU 0.93
11-11-199411-12-2004
Recommendation Sell Anheuser-Busch Issues
Revenues shrinking from year to yearPre-tax margins at all-time high, but price to
sales and price to earnings at median levelsHugely competitive market with Miller, other
brewers
Sysco Corporation
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
SYSCO CORPORATION (SYY)PRICE 35.3 DATE 11-12-2004StockVal® EPS Lagged 1-Year
44
55
6677
99
1111
13131515
1919
2323
2828
3434
41
49
60
The Ohio State UniversityFisher College of Business
Price Change % Diff SP5
1-Day 0.54 -0.37
1-Week 1.06 -0.48
4-Weeks 17.66 10.80
QTD 17.81 11.57
YTD -5.32 -11.82
2003 24.97 -1.41
2002 13.62 36.98
2001 -12.60 0.44 FYE Jun 2004 EPS 1.39
First Call Data 2005 2006 2007
Mean Estimate 1.51 1.73 NE
Change +9% +15%
High 1.56 1.84
Low 1.45 1.61
Total 13 13
# Up 1 1
# Down 9 7
House Estimate
PE Ratio 23.3 20.4 NE
Revenues ($Mil) 29,733
Market Value ($Mil) 22,493
Shares Out (Mil) 638.1
Daily Volume (Thou) 2,659
Daily Volume ($Mil) 93.7
Dividend Estimate 0.52
Payout Ratio 34%
Retention Rate 66%
Dividend Yield 1.48%
Data Page # 1
Business Analysis Businesses:
Food distributor Supply distributor (plates,
silverware, etc
Main Customers Restaurants Health-care facilities Education facilities
Business: Demand Revenue is increasing from year-to-year
Expected increase in the number of people in healthcare facilities
Growing economy stimulates consumer spending (dining out)
DuPont AnalyticsSYSCO CORPORATION (SYY) StockVal ®
Price 35.250 11/12/04 FYE Jun INT TAX ASSET
MARGIN% BURDEN BURDEN% TURN LEVERAGE
EBIT EBT T Sales Assets
------- ------- 1 - ---- ------- ------- ROE Acct ROE
Sales EBIT EBT Assets Equity Rpt% Adj% Adj%
2004 5.27 0.95 61.50 3.97 3.10 38.10 0.00 38.10
2003 5.10 0.95 61.75 4.04 2.99 35.95 0.00 35.95
2002 4.98 0.95 61.75 4.12 2.68 32.12 0.68 32.80
2001 4.77 0.93 61.75 4.32 2.64 31.23 0.64 31.87
2000 4.19 0.91 61.50 4.38 2.83 28.60 1.02 29.62
1999 3.83 0.89 61.00 4.43 2.89 26.63 0.00 26.63
1998 3.86 0.90 61.00 4.25 2.65 21.76 2.06 23.82
1997 3.75 0.91 61.00 4.28 2.35 21.04 0.00 21.04
1996 3.70 0.92 61.00 4.17 2.23 19.24 0.00 19.24
1995 3.76 0.92 60.30 4.10 2.23 19.05 0.00 19.05
1994 3.69 0.91 58.97 4.10 2.25 18.23 0.41 18.64
1993 3.70 0.89 60.79 4.13 2.21 18.40 0.00 18.40
1992 3.65 0.87 61.15 3.95 2.28 17.44 0.00 17.44
1991 3.68 0.84 61.32 3.90 2.47 18.21 0.00 18.21
1990 3.59 0.79 61.30 3.92 2.74 18.74 0.00 18.74
1989 3.44 0.75 61.00 4.74 2.44 18.19 0.00 18.19
1988 3.23 0.91 61.98 4.66 1.88 17.39 -0.37 17.02
1987 3.62 0.92 50.54 4.45 1.92 14.48 0.26 14.74
Financial: DuPont Analysis
StockVal®SYSCO CORPORATION (SYY) Price 35.31994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
PRICE / YEAR-FORWARD EARNINGS16
20
24
28 HI 31.9 LO 16.8 ME 22.6 CU 22.5
11-11-199411-12-2004
PRICE / SALES0.3
0.6
0.9HI 1.01 LO 0.39 ME 0.64 CU 0.78
11-11-199411-12-2004
NET PROFIT MARGIN ADJUSTED %2.0
2.4
2.8HI 3.1 LO 2.1 ME 2.2 CU 3.1
12-31-199409-30-2004
GROWTH RATE ESTIMATE10.8
12.0
13.2
14.4 HI 15.50 LO 12.00 ME 14.00 CU 15.00
11-11-199411-12-2004
Valuation Analysis
Valuation AnalysisStockVal®SYSCO CORPORATION (SYY) Price 35.3
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
PRICE / YEAR-FORWARD EARNINGS RELATIVE TO S&P CONS. STAPLES SECTOR COMPOSITE A (SP-30)0.6
0.9
1.2HI 1.47 LO 0.73 ME 1.08 CU 1.28
11-11-199411-12-2004
PRICE / SALES RELATIVE TO S&P CONS. STAPLES SECTOR COMPOSITE A (SP-30) M-Wtd0.2
0.4
0.6HI 0.74 LO 0.28 ME 0.45 CU 0.64
11-11-199411-12-2004
PRE-TAX MARGIN RELATIVE TO S&P CONS. STAPLES SECTOR COMPOSITE A (SP-30) M-Wtd0.3
0.4
0.5
0.6 HI 0.62 LO 0.40 ME 0.43 CU 0.60
12-31-199409-30-2004
GROWTH RATE ESTIMATE RELATIVE TO S&P CONS. STAPLES SECTOR COMPOSITE A (SP-30) M-Wtd0.8
1.0
1.2
1.4 HI 1.40 LO 0.89 ME 1.05 CU 1.40
11-11-199411-12-2004
Recommendation Buy Sysco Corporation Reasons
Growth rate estimates at an all-time high relative to consumer staples sector
Price-to-earnings and price-to-sales do not reflect this expectation
Certain demand increases via healthcare and increased discretionary consumer spending
CVS versus Walgreen Corporation
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
CVS CORPORATION (CVS)PRICE 46.3 DATE 11-12-2004StockVal®
1010
1212
1414
16161818
2222
2626
3030
3434
4040
4646
5454
64
74
86
The Ohio State UniversityFisher College of Business
Price Change % Diff SP5
1-Day -0.39 -1.30
1-Week 0.32 -1.22
4-Weeks 7.17 0.31
QTD 10.02 3.77
YTD 28.32 21.82
2003 44.65 18.27
2002 -15.64 7.72
2001 -50.62 -37.57 FYE Dec 2003 EPS 2.07
First Call Data 2004 2005 2006
Mean Estimate 2.13 2.63 3.01Change +3% +23% +14%
High 2.15 2.75 3.12
Low 2.08 2.55 2.85
Total 16 16 6
# Up 15 12 3
# Down 0 1 0
House Estimate
PE Ratio 21.8 17.6 15.4
Revenues ($Mil) 29,123
Market Value ($Mil) 18,534
Shares Out (Mil) 399.9
Daily Volume (Thou) 1,691
Daily Volume ($Mil) 78.4
Dividend Estimate 0.26
Payout Ratio 12%
Retention Rate 88%
Dividend Yield 0.57%
Data Page # 1
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
WALGREEN COMPANY (WAG)PRICE 39.2 DATE 11-12-2004StockVal®
33
44
55
6677
99
1212
1515
1818
2323
2929
3636
45
57
71
The Ohio State UniversityFisher College of Business
Price Change % Diff SP5
1-Day 0.54 -0.37
1-Week 1.71 0.17
4-Weeks 9.95 3.09
QTD 9.52 3.27
YTD 7.86 1.36
2003 24.63 -1.75
2002 -13.28 10.09
2001 -19.50 -6.45 FYE Aug 2004 EPS 1.31
First Call Data 2005 2006 2007
Mean Estimate 1.49 1.70 NE
Change +14% +14%
High 1.52 1.77
Low 1.43 1.61
Total 18 15
# Up 11 0
# Down 2 1
House Estimate
PE Ratio 26.3 23.1 NE
Revenues ($Mil) 37,508
Market Value ($Mil) 40,163
Shares Out (Mil) 1,023.5
Daily Volume (Thou) 2,564
Daily Volume ($Mil) 100.6
Dividend Estimate 0.21
Payout Ratio 14%
Retention Rate 86%
Dividend Yield 0.54%
Data Page # 1
CVS versus Walgreen Business
Walgreen currently largest U.S. Retail Drug Store with 37.5 billion dollars in sales
CVS is second with 22.6 billion dollars in sales
Demand
Increased need for prescription drugs as population continues to grow older
Continued expansion in opening of new stores for both companiesCVS through acquisition (Eckerd from J.C.
Penny)
Dupont - CVSDuPont Analytics
CVS CORPORATION (CVS) StockVal ®
Price 46.350 11/12/04 FYE Dec INT TAX ASSET
MARGIN% BURDEN BURDEN% TURN LEVERAGE
EBIT EBT T Sales Assets
------- ------- 1 - ---- ------- ------- ROE Acct ROE
Sales EBIT EBT Assets Equity Rpt% Adj% Adj%
2003 5.38 0.96 61.60 2.63 1.80 15.11 0.00 15.11
2002 5.01 0.95 62.00 2.65 1.87 14.68 0.04 14.72
2001 3.48 0.92 58.23 2.68 1.87 9.32 5.78 15.10
2000 6.61 0.94 60.00 2.64 1.91 18.69 0.51 19.20
1999 6.31 0.94 59.00 2.59 2.06 18.71 0.00 18.71
1998 4.98 0.91 55.64 2.41 2.21 13.43 4.39 17.82
1997 2.01 0.79 35.20 2.29 2.39 3.06 13.61 16.67
1996 6.15 0.88 57.88 1.87 2.54 8.36 3.96 12.32
1995 1.52 2.34 -18.52 25.63 7.11
1994 1.51 3.90
1993 1.36 4.25
1992 5.01
1991 14.26
1990 22.20
1989 23.95
1988 22.40
1987 20.97
1986 20.61
Dupont - WalgreenDuPont Analytics
WALGREEN COMPANY (WAG) StockVal ®
Price 39.240 11/12/04 FYE Aug INT TAX ASSET
MARGIN% BURDEN BURDEN% TURN LEVERAGE
EBIT EBT T Sales Assets
------- ------- 1 - ---- ------- ------- ROE Acct ROE
Sales EBIT EBT Assets Equity Rpt% Adj% Adj%
2003 5.82 1.00 62.25 3.05 1.59 17.51 -0.27 17.24
2002 5.74 0.99 62.25 3.07 1.64 17.82 -0.07 17.75
2001 5.85 0.99 62.25 3.09 1.69 18.76 -0.29 18.47
2000 5.98 1.00 61.50 3.26 1.69 20.13 -0.53 19.60
1999 5.78 1.00 60.75 3.30 1.71 19.71 0.00 19.71
1998 5.75 1.00 61.23 3.36 1.74 19.57 0.12 19.69
1997 5.34 1.00 61.24 3.41 1.78 19.75 0.00 19.75
1996 5.17 1.00 61.25 3.42 1.80 19.38 0.00 19.38
1995 5.06 1.00 61.24 3.39 1.82 19.06 0.00 19.06
1994 5.00 0.99 61.50 3.43 1.82 19.10 0.00 19.10
1993 4.90 0.98 61.37 3.42 1.86 16.98 2.20 19.18
1992 4.94 0.96 62.49 3.38 1.91 19.06 0.00 19.06
1991 4.92 0.94 62.49 3.39 1.96 19.23 0.00 19.23
1990 4.96 0.94 62.16 3.40 2.01 19.72 0.00 19.72
1989 4.88 0.93 63.25 3.40 2.06 20.08 0.40 20.48
1988 4.69 0.91 61.77 3.42 2.14 19.34 0.00 19.34
1987 4.96 0.91 53.35 3.37 2.16 17.60 0.39 17.99
1986 5.44 0.94 54.96 3.41 2.07 19.93 0.00 19.93
Valuation – CVS versus Walgreens
CVS WAG Industry
Market Cap: 18.50B 40.34B 285.75M
Employ ees: 110,000 117,000 530
Rev. Growth (ttm): 10.00% 13.30% 13.30%
Revenue (ttm): 29.12B 37.51B 573.99M
Gross Margin (ttm): 26.21% 27.19% 26.21%
EBITDA (ttm): 1.94B 2.14B 11.62M
Oper. Margins (ttm): 5.31% 5.71% 2.27%
Net Income (ttm): 912.60M 1.36B 6.20M
EPS (ttm): 2.233 1.319 0.38
PE (ttm): 20.71 29.93 22.84
PEG (ttm): 1.68 1.7 1.22
PS (ttm): 0.64 1.07 0.66
Recommendation
Sell Walgreen Corporation to acquire CVSMore potential for growth in 2005Retail drug market is expandingLarge acquisition of Eckerd will be more
beneficial in 2005Walgreen Corporation above industry ratios
Questions