Basic Description of company's activities
Major shareholders (type of investor to be described, State, family, hedge fund, long only fund etc). Any holding over 3%
Sources used (information sources)
If in Benchmark what is the weight
Weight of meaningful sector within country and wider benchmark if applicable
Significant global peers
Capital Appraisal sheet completed?
Allianz One pager filled in?
Has the earnings release date been entered into the calendar?
Detail of the valuation score and what it implies
Detail of the momentum score, what it implies and view on whether momentum can be maintained. price or reversion
Where is the strength in earnings and sentiment, can this be sustained?
Sustainability of the quality score
RCM style screen analysis
Bespoke screen analysis
How does the stock sit in respective deciles?
Historic EPS volatility vs benchmark
Earnings surprise history
Historic price performance
What is the stocks correlation with country, sector and peers?
What direction are consensus earnings taking
Analyse the historic pattern of earnings estimates
What is the historic valuation range and what is the relevance of the range?
Brief description of the investment case
Detailed Investment case - industry analysis (Porter etc), SWOT, other (input link to other documents if appropriate)
Corporate Governance and ESG analysis (if Chinese is it a VIE relationship?)
Issues from statutory reports (accounts, 20F etc)
Return analysis (DuPont and CFROI) - stability of future returns. Margins, asset turnover and leverage
Balance sheet analysis - source and future outlook for funding
Working capital check
Where is the company in its Capex cycle (or capital requirement for banks)
Are any step changes in cash flow forecast
What is the Dividend policy and current yield and the sustainability of this yield?
Fiscal policy (Importance of tax revenues to central government, tax changes, are prices regulated- subsidies)
License regime and other specific government related interference (ie strategic asset)
If the sovereign curve is important in the market derive an appropriate outlook and link it to the stock and stock market
Sovereign curve - impact upon discount rate
Sovereign curve changes and impact upon cashflow
For drivers and risks you need to consider materiality, what issues are large enough to change the current perception over the level, timing and certainty of cash flows.
Major Positive Drivers, earnings, cashflow, risk perception
What is the market missing in the current valuation
Major Risks to investment case
Category of major catalyst
Looking at where forecasts of the level, timing and certainty of cashflow differ from that currently implied and the factors/catalysts needed to move the market towards this view
Description and timing of the key catalysts
What is the current market psychology around the stock
Key factors to monitor for the stock and sources
Filed Balance Sheet, Income statement and Cashflow?
There are four factors to return. Dividend, earnings growth, multiple change and currency. The combination of these factors determines absolute and hence relative performance
Is the expected earnings growth above GEM earnings growth in FY1 and 2?
Current appropriate valuation models (include reasons for validity)
Target price range and reason (growth, multiples, yield and currency impact)
What is the current technical and supply and demand position of the stock?
What is the historic stock performance and does it have any relevance