31228-01.edited

docx

School

New York University *

*We aren’t endorsed by this school

Course

STRATEGIC

Subject

Finance

Date

Nov 24, 2024

Type

docx

Pages

7

Uploaded by MagistratePheasantMaster637

Report
Slide 2: Introduction Tim Hortons, a global fast-food franchise in Canada, was founded in 1964. Canadian international network of restaurants and coffee shops. It is a Toronto-based fast-food restaurant that offers "sandwiches, coffee or donuts." The corporation is typically well-respected, illustrating Canadian identity and participating in community-oriented campaigns. The corporation's capacity to respond to changing customer needs and overcome market obstacles determines investors' trust. Tim Hortons has occasionally been involved in controversy involving disagreements with franchise holders, but it is typically respected in the Canadian business society. The organization's success is frequently watched as a sign of how well Canada's and other countries' fast-food industries are doing. Speaker Notes The well-known international fast-food restaurant Tim Hortons is based in Canada and has a rich cultural legacy. Tim Horton, the hockey great, established the firm in 1964. It immediately became well-known throughout Canada for its delicious coffee and freshly baked products. Since then, Tim Hortons has grown internationally, emerging as a significant force in the quick- service restaurant industry, with an established reputation in Canada and other important foreign countries. Even so, the enterprise has encountered several obstacles, such as variations in menu selections and rivalry inside a dynamic marketplace. The company's capacity to adjust to shifting customer needs and negotiate the economic environment has affected investor trust. Even though the company has occasionally been involved in scandals, such as disagreements with franchisees regarding business methods, it has a respectable reputation in the Canadian business community. Slide 3: Tim Hortons Profile o A broad spectrum of people, from those approaching retirement to those in their mid-to- late careers, are Tim Hortons stockholders. o These investors value Tim Hortons due to its well-established brand and steady accomplishments in the Fast Food sector. Typically, such investors prioritize secure, dividend-paying equities, as Abu-Laban (2020) illustrated. o An average to cautious risk aversion is reflected in numerous shareholders' pursuit of income production and preservation of capital. o Tim Hortons may draw younger investors with a greater risk tolerance due to its commercial and consumer growth prospects. o Investors like Tim Hortons' chances of international growth and its standing for robust CSR programs.
o Tim Hortons has a diverse investor base overall, indicative of its widespread popularity and standing as a mainstay in domestic and foreign markets. Speaker Notes Tim Horton's investors usually have a wide variety of backgrounds, which reflects the brand's popularity to a wide range of consumers. Many consumers uniting with Tim Hortons might be approaching retirees or in their mid-to-late professional stages. Considering Tim Hortons' well-known brand and steady progress in the quick-service restaurant industry, such investors frequently value stable, dividend-paying equities and think the company is a trustworthy investment. This group of investors prioritizes the preservation of assets and income production, and they often have a moderate to cautious tolerance for risks. They place a high value on the long-term viability and resilience that come with well-known brands. However, younger investors looking for growth opportunities in the retail and consumer industries can also be drawn to Tim Hortons. These investors are driven by the possibility of financial gain as the organization grows internationally and may be more accommodating of volatility. This market is more willing to take risks but rewards businesses with strong programs, consistent with Tim Hortons' focus on community involvement. Given the vast popularity of the brand and its status as a mainstay in both the Canadian and global markets, investors in Tim Hortons generally represent a diverse range of life phases and tolerances for risks. Slide 4: The Business’s Health Category Industry The valuation ratio P/E Ratio TTM 21.35 Price to Sales TTM 4.72 Price to Cash Flow MRQ 17.81 Cost to Free Cash Flow TTM 20.72 Price to Book MRQ 12.99 Cost to Tangible Book MRQ -2.13 The profit: TTM versus the five-year average margin TTM (%) 40.79 Gross Margin TTM Operating Margin TTM 31.83 Pretax Margin TTM 22.82 Net Profit Margin TTM 15.06 The revenue/share and earnings Revenue/Share TTM 20.78 Basic EPS ANN 2.7 Diluted EPS ANN 2.69
Book Value/Share MRQ 7.56 Tangible Book Value/Share MRQ -46.17 Cash/Share MRQ 3.09 Cash Flow/Share TTM 5.02 The efficiency of management; TTM versus the 5-year average margins TTM (%) Return on Equity TTM 39.68 Return on Assets TTM 6.19 Return on Investment TTM 9.45 EPS/sales growth EPS(MRQ) vs Qtr. 1 Yr. Ago MRQ 65.56 EPS(TTM) vs TTM 1 Yr. Ago TTM 26.6 5-Year EPS Growth 5YA 12.73 Sales (MRQ) vs Qtr. 1 Yr. Ago MRQ 15.45 Sales (TTM) vs TTM 1 Yr. Ago TTM 14.61 5-Year Sales Growth 5YA 6.72 5-Year Capital Spending Growth 5YA 25.54 The financial health/efficiency Quick Ratio MRQ 0.8 Current Ratio MRQ 1 LT Debt to Equity MRQ 555.69 Total Debt to Equity MRQ 623.3 The efficiency Asset Turnover TTM 0.28 Inventory Turnover TTM 33.48 Revenue/Employee TTM 1.12M Net Income/Employee TTM 247.02K Receivable Turnover TTM 12.02 The dividends Dividend Yield ANN 3.63 Dividend Yield 5 Year Avg. 5YA 3.64 Dividend Growth Rate ANN 1.29 Payout Ratio TTM 101.46 “TTM = Trailing Twelve Months, 5YA = 5-Year Average, MRQ = Most Recent Quarter” Tim Hortons' price to revenue, profits, and cash flow are projected to grow favorably by valuation measures (P/E, Price to Sales, and Price to Cash Flow). There are worries that the market is undervaluing tangible assets based on the Negative Price to Tangible ratio (-2.13). The profitability margins—Net Profit Margin, Operating Margin, Pretax Margin, and Gross Margin—show intense levels; an overview of the 5-year average reveals trends.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
Tim Hortons' flexibility and fortitude in a cutthroat industry are demonstrated by favorable patterns in EPS and the sales increase during the previous year and the last five years. Extremely high debt-to-equity ratios indicate a dependency on debt, calling for an additional examination of the business's approach to managing its debt and its capacity to pay its debts. Tim Hortons looks to be in good fiscal condition, but a thorough evaluation must consider debt control. Speaker notes According to the computed metrics, Tim Hortons' financial situation is relatively good. A fair P/E ratio of 21.35 indicates an optimistic expectation of future profits, and the valuation ratios point to a positive market assessment. This optimistic outlook is supported by the Price-to-sales and price-to-cash flow ratios of 4.72 and 17.81, respectively. Faith in the organization's ability to generate cash flow and generate re learningrelearning sign, nevertheless, is the negative Price Tangible ratio of -2.13, which suggests that the market is undervaluing the organization's physical assets. This could be a problem, so more research into the make-up of material possessions is necessary, based on Moreira & Tarran (2023). Positive patterns can be seen in the growth indicators, which illustrate the organization's adaptation and durability in an environment of competition. Examples of these indicators are the growth in earnings per share and revenue growth during the last year and the previous five years. Regarding the business's financial condition, further research is required to comprehend its debt management approach and capacity to pay debts, even if the debt-to-equity ratios are relatively high and indicate a substantial dependence on debt. Tim Hortons is in decent financial shape, but consideration must be given to factors like significant book value or managing debts for a more thorough evaluation. Slide 5: Comparison of the industry with the others Tim Hortons' valuation ratios—P/E, Price to Sales, and Price to Cash Flow—show that the market is feeling upbeat and that investors are prepared to pay more for the company's shares than its competitors in the same industry. Growth indicators, economic condition measurements, and profitability margins exhibit good outcomes, pointing to robust profitability and upward revenue and profit expansion trends. A thorough assessment of Tim Hortons' profitability requires detailed industry research, which includes comparing necessary financial measures with industry standards. Speaker’s Notes Tim Hortons figures show that investors are prepared to pay a comparatively more significant cost for the business's stock compared to its industry counterparts.
Tim Hortons is favorably reflected in the earnings margins, development measurements, and economic condition metrics, demonstrating robust profitability rates and encouraging trends in revenues and growth in sales. On the other hand, the negative Tangible ratio makes one wonder how the marketplace views the business's physical property. Determining how Tim Hortons compares to its competitors would demand thorough industry research, including an overview of critical financial data with industry standards. Slide 6: Recommendations A negative price-to-tangible ratio raises the possibility that tangible assets are undervalued; this is indicated by the P/E ratio, Price to Sales, and Price to Cash Flow, which all show positive investor sentiment and appropriate margins for profitability and beneficial developments in development indications. It is essential to carry out a thorough study of risk tolerance, Consulting a specialist in finance and keeping up with market developments are critical for making well-rounded financial choices that support the client's goals. Speaker Notes Given the monetary analysis and business contrast, exercise caution while choosing. Tim Hortons has good profitability margins, growing indications trending in the right direction and a positive attitude in the market. The client should thoroughly analyze before buying shares of Tim Hortons or a different business in the marketplace. This research should consider the customer's investment goals, risk tolerance, and overall economic situation. Furthermore, a thorough analysis of particular industry peers' financial standing, future development potential, and competitive position would offer a more knowledgeable foundation for decision-making. It would be helpful to consult with a financial professional and keep up with market developments to produce professional, well-rounded investment choices in line with the customer's financial goals. Slide 7: Conclusion Tim Hortons performs well financially and in the eyes of the market. The drawback of the price-to-tangible ratio highlights the importance of conducting a comprehensive analysis before investing. It is perfect for assessing investment objectives and tolerance for r and conducting an in- depth analysis with contemporaries in the field. It's crucial to consult a financial expert on a well-informed approach. One must stay current on market developments to make continuous decisions that align with financial goals.
Speaker Notes In summary, even though Tim Hortons does well financially and regarding marketplace attitudes, the company's negative tangible ratio emphasizes the value of doing extensive research before making all financial choices. Customers should thoroughly assess their investing objectives and risk tolerance and consider a thorough comparison with peers in the sector. Seeking advice from a financial advisor and keeping up with market developments will help them develop a knowledgeable investment plan that supports their financial goals. Slide 8: Reflection o The task provided a valuable platform for organized financial analysis and reporting. o Tables, a clear point-form structure, and a systematic dissection of intricate financial data for easy comprehension were used to attain the desired level of clarity. o Finding the right balance between brevity and clearly explaining essential details was challenging but worthwhile. o The content's numerical nature necessitated striking a balance between thorough understanding and concision. o Financial evaluation and interpersonal abilities were improved through practical use. o She helped to improve comprehension of the art of concisely presenting complicated facts. Speaker Notes This task gave me an excellent chance to evaluate and present financial data organizationally. I value the simple point-form structure and the simplicity of using tables to convey facts. It made breaking down intricate financial measures possible, making systematic interpretation easier. The tricky part is being concise while conveying vital information clearly. Balancing detailed insights and concision was satisfying, even with the information's numerical character. Overall, the exercise helped to improve comprehension of how to communicate complicated information concisely by providing an actual usage of financial evaluation and communication skills. Slide 9: References Abu-Laban,   Y. (2020). Donut nation.   Nationalism and Popular Culture , 19- 35.   https://doi.org/10.4324/9780429321764-3 Moreira, I., Villarama, M., & Tarrant, A. L. (2023). Organizational strengths and weaknesses in the coffee shop industry in Canada. Revista cientifica global negotium, 6(3), 155-174.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help