Indigo Company Analysis

 

Fundamental financial company analysis - Putting it all together

Financial, operational and market data is analysed and adjusted to provide a more accurate view of businesses' commercial and financial fundamentals and thus value. For example, we adjust reported financial data on revenues, operating profits, margins, net income and EPS for acquisitions, disposals & mergers, as well as one-off & unusual items. 

 

See also Industry Analysis of the markets that companies covered by Indigo Equity Research operate in. 

Comparison of Indigo Financial Analysis to standard reported Financial Data:

 

 

 

 

Reported Financial Data

 

Indigo Analysis

 

Revenue & Revenue Growth

Revenue and Revenue Growth is adjusted for acquisitions & disposals and unusual items. The objective is to display the underlying revenue trends and organic growth of company's continuing activities.

Graph_Revenue_1 arrow Graph_Revenue_2
         
 

Revenue & Growth by Division,

Reported revenue data typically is only provided on a two year historical basis. Indigo analysis seeks to looks at a longe term (ten year) historical perspective.

Graph_Revenue_3 arrow Graph_Revenue_4
         
 

Adjusted Profit Margins

Profit margins are adjusted for unusual and discontinued items. The objective is to display the profit trends of company's continuing activities.

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Adjusted Operating Profit 

Operating Profit (EBIT) and Margins are adjusted for unusual items and discontinued (sold) businesses. The objective is to display the profit trends of company's continuing activities.

Graph_EBIT_3 arrow Graph_EBIT_4
         
 

Adjusted Net Income 

Net income is adjusted for unusual items;  The objective is to display how the company's the core net income is changing.

Graph_Net_Income_1 arrow Graph_Net_Income_2
         
 

Net Income Analysis 

Net income is adjusted for unusual items and analysed by its key components parts (EBIT, Tax, Interest and Other items). The objective is to display what is driving company's the net income.

Graph_Net_Income_1 arrow Graph_Net_Income_2a
         
 

Adjusted EPS 

EPS is adjusted for unusual items. The objective is to display the different parts of EPS between what is the "core" EPS of the business and what is unusual. Also, EPS growth is shown - typically this is displayed on a 12 month moving average basis, as the Quarterly EPS volatility can be high.

Graph_EPS_1 arrow Graph_EPS_2

 

Note on adjustments for "Unusual Items"

Indigo Equity Research determines what constitutes an "Unusual Item". Generally an "Unusual Item" is a large, one-off charge or benefit that is unlikely to recur; from an investor's perspective. Typically this relates to gains or losses on the disposal or acquisition of businesses; or the write-down of intangible assets. The determination of what is considered unusual is independent of accounting regulations or management influence (or sell-side equity research analysts).