Equity Research Report

For this assignment, you will be writing an equity research report as if you are a sell-side analyst. You will not be replicating real-world reports, but I do want you to see what a real equity research analysts report looks like. See one from J.P. Morgan herePreview the document and one from Credit Suisse herePreview the document. Note the detail of the discussions and especially the investment thesis. This is your model for professionalism in this capstone experience paper.

Begin your adventure by navigating to Y-Charts Stock Screener, which is on the Tools pulldown menu. The Modify button allows you to filter based on qualitative information (i.e., industry) while the Add Filter button enables robust quantitative filtering. Apply the quantitative filters listed below on the Equation tab within the Add Filter button.

Once you have picked the screen, your task is to pick one company from the list of stocks produced by either my screen or your customized screen.

Ultimately, you will be writing an equity research report using this template documentPreview the document.

Start on the Quotes tab and learn about your company’s products, their industry, and their next earnings release date.

Move to the Fundamental Chart tab and add two different Financial Metrics to the price data already populated. You are looking for Revenue (Quarterly) and EPS Diluted (Quarterly). Change the time period to 5 years, and then select Save Image just above the graph to generate a PNG file that can be easily added to your paper. In the paper, you will be posting this image and discussing interesting details/trends that you would like to highlight.

Move to the Technicals tab and retain the default settings of a 14-day RSI, 50-day SMA, and 200-day SMA. Select Save Image just above the graph to generate a PNG file that can be easily added to your paper. In the paper, you will be posting this image and discussing interesting details/trends that you would like to highlight.

Move to the Key Stats tab. You need to specifically harvest the information below and you should state the current value and comment on the trend in the variable where available. The trend can be seen by clicking on the blue link for the variable in question. Click my blue links below if you do not know what a variable means. List all variables and then discuss your collective view in one or two paragraphs below the section.

Dividend Yield: (current + trend) [Note that not all stocks pay a dividend. This value might be zero.]

Payout Ratio: (current + trend)

Beta: (current + trend)

Revenue (Quarterly YoY Growth): (current + trend)

Include a peer-set comparison using the Key Stats Comparison sub-tab)

ROE: (current + trend)
Include a peer-set comparison using the Key Stats Comparison sub-tab)

Petroski F-Score (Links to an external site.): (current + trend)

Tobins Q (Links to an external site.): (current + trend)

Altman Z-Score (Links to an external site.): (current + trend)

Debt-to-Equity Ratio: (current + trend)

Move to the Valuation tab. You need to populate a matrix like the one shown in the template that I provided (see the yellow highlighting above). Make sure that you scroll all the way to the bottom of the Valuation page. The 3-year median and 5-year median are for your chosen stock. This section should include both numerical values and a discussion on your thoughts on the information presented. Some stocks will show missing data in some fields. If you encounter this issue, then type “N/A” meaning “not available” in that cell.

Move to the News tab. There is always some relevant news event for a stock. What is going on that investors should know about?

Your last section should be labeled Investment Thesis. In this section, you need to consolidate your findings from all other sections and write a clear statement to a prospective investor. Your clear statement needs to resolve with a buy/sell/hold recommendation.