Stock Research Template

• Audit Title

• Document No.

• Client / Site

• Conducted on

  Date

• Prepared by

• Location
  Address

• Personnel

Basic Information

• Company Name

• Bloomberg Code

• Company Website

• Date of last company visit (call)

  Date

• Basic Description of company's activities

• Beta

• Free float

• Major shareholders (type of investor to be described, State, family, hedge fund, long only fund etc). Any holding over 3%

• Sources used (information sources)

• GICS Category

  Yes

  No

  N/A

• Country

• Liquidity

• 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?

  Yes

  No

  N/A

• Allianz One pager filled in?

  Yes

  No

  N/A

• When is the next earnings release?

  Date

• Has the earnings release date been entered into the calendar?

  Yes

  No

  N/A

• Mind map?

  Yes

  No

  N/A

Quant screening factors

• Combined JPM Q Score

• JPM Valuation score

• Detail of the valuation score and what it implies

• JPM Price score

• Detail of the momentum score, what it implies and view on whether momentum can be maintained. price or reversion

• JPM Earnings score

• Where is the strength in earnings and sentiment, can this be sustained?

• JPM Quality score

• 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

• EPS vs Benchmark EPS

  Media

• Earnings surprise history

• Earnings surprise

  Media

• Historic price performance

• Price performance

  Media

• What is the stocks correlation with country, sector and peers?

• Correlation

  Media

• What direction are consensus earnings taking

• Consensus earnings

  Media

• Analyse the historic pattern of earnings estimates

• Historic Earnings estimates EE G

  Media

• What is the historic valuation range and what is the relevance of the range?

• Valuation range

  Media

Investment case

• 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)

Outlook for the timing and certainty of cashflows

• Assessment of certainty of future cashflows (relative to benchmark) - 1 is low certainty

• 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?

Impact of macro and political factors on the stock

• Currency

• Reforms

• Fiscal policy (Importance of tax revenues to central government, tax changes, are prices regulated- subsidies)

• Monetary Policy

• Economy

• License regime and other specific government related interference (ie strategic asset)

Outlook for the sovereign curve

• 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

Drivers and Risks

• 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

  Relative Value

  Macro

  Thematic

  Special Sits

  Other

• 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?

  Yes

  No

  N/A

Valuation and target

• 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)

• Investment decision

  CONVICTION BUY

  BUY

  CONVICTION SELL

  SELL

• 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