Fundamental Models

1) PPC company breakdown presentation

 

2) COH VS ADH ratio analysis 

 

Link: http://engineeringtrader.blogspot.co.za/2016/06/coh-vs-adh-ratio-analysis.html

 

 

 

Link to file:

 https://www.dropbox.com/s/rqi657uu5zi7abx/PPC%20presentation.pptx?dl=0



Liquidity 

Looking at the liquidity ratios COH looks to have the stronger position in its ability to pay of short and long term obligations. When looking at the historical liquidity performance of the two shares COH has shown to be improving on its ability to pay off its obligations. This is seen with the increasing of its current and quick ratio. ADH's current and quick ratios have remained constant and significantly lower than COH's historically. 

Solvency

When looking at the solvency ratios for both companies the results are positive for both. The debt to equity ratio value for COH is slightly lower than that of ADH but both coming in under 1 is positive. Both companies have low debt to assets values with COH having the lowest. The interest cover shows a strong position for ADH with a value of 3.54, more than double that of COH. 

Price


When looking at the price ratios the one that immediately stands out is the very large price to earnings ratio (P/E) of COH, which is significantly greater than that of ADH. The current P/E for COH is 129.89 which is still very high making the share a lot more expensive than its competitor, ADH. When looking at the rest of the price ratios it its also clear that ADH's price to book value, cash flow, NAV, EBIT, cash ratios are a lot more attractive than COH's.

Return on 

In terms of the return on ratios, ADH clearly fairs stronger than COH, however COH's return on ratios are showing to be increasing whilst ADH's seem to be decreasing slightly.   

Margins

Finally looking at the margins for both companies it is apparent that both margins for ADH are higher that those of COH. This can be attributed to many reasons one of which being that ADH also provides tertiary education where COH does not, which is usually more expensive thus can produce greater margins. 

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