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|
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| Comapny name |
: |
Merrill Lynch & Co., Inc |
| Share |
: |
MER |
Analysis date |
: |
14-Nov-2007 |
| Stock exchange |
: |
NYSE |
Rating |
: |
6/9 |
|
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| 1 |
History of Consistently Increasing EPS, Sales & Cash Flow. |
| |
1) EPS has increased consistently over 5 years? |
Yes |
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2) Sales has increased Consistently over 5 years? |
Yes |
| |
3) Cash Flow has increased consistently over 5 years? |
No |
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4) What is the historical/projected EPS growth rate?
|
+12.70% |
| |
|
|
| 2 |
Sunstainable Competitive Advantage |
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1) The company has a sustainable competitive advantage? |
Yes |
| |
Merrill Lynch & Co., Inc. (Merrill Lynch) is a holding company that provides investment, financing, insurance and related services to individuals and institutions on a global basis through its broker, dealer, banking, insurance and other financial services subsidiaries.
As an investment bank, the Company is a global trader and underwriter of securities and derivatives across a range of asset classes. Merrill Lynch also serves as an advisor to corporations, governments, institutions and individuals worldwide. |
|
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| 3 |
Future Growth Drivers |
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1) The company has future growth drivers in place? |
Yes |
| |
On September 29, MER completed the merger of Merrill Lynch Investment Managers (MLIM) with BlackRock.
The new BlackRock has global reach, with more than $1 trillion in assets under management, a healthy balance
between equity and fixed income and alternative investments, and between individual and institutional clients.
BlackRock is now in a position to serve existing clients across a range of products and services broader than either
legacy organization could offer on its own, and has a compelling competitive advantage in attracting new clients
and new assets. |
|
|
| 4 |
Conservative Debt |
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1) The company has Long Term Debt <3x Net Profit? |
No |
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2) Long-Term Debt is $
|
185,213.00 million |
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3) Net Profit is $
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7,499.00 million |
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|
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| 5 |
High & Consistent ROE and ROA |
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1) The company has ROE>12-15% over 5 years? |
Yes |
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2) The company has ROA>7% over 5 years? |
No |
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|
|
| 6 |
Low CAPEX for Maintenance of Current Operations? (Not a key criterion) |
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1) The business requires low CAPEX for maintenance of Current operations? |
Yes |
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2) Is ( Free Cash Flow/Sales Revenue )>5%? |
No |
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Free Cash Flow/Sales Revenue figure is unavailable. |
|
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| 7 |
Management is Holding/Buying the Stock |
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1) Key Management has not been selling large Proportion of company stock? |
Yes |
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|
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| 8 |
The Stock Price is Selling at a Discount (High Margin of Safety) |
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1) Current operating cash flow/EPS
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7.59 (EPS) |
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2) Projected Earnings Growth Rate
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+12.70% |
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3) Number of shares outstanding
|
963 million |
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4) Intrinsic Value
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$114.34 |
| |
5) Share price is below intrinsic value? |
Yes |
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|
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| 9 |
Stock Price is Consolidating or on an Uptrend |
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1) Stock price breaking out of consolidating |
No |
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2) Stock price at a dip on a uptrend |
Yes |
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3) Stock price above 20 or 50 day moving average |
No |
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