CFA Challange

CFA Challange

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CFA Institute Research Challenge
Hosted by Swiss CFA Society, Switzerland

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Anonymous team
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Anonymous University Student Research

Health Care Equipment & Services

This report is published for educational purposes only by student competing in the CFA
Institute Research Challenge.

TECAN&Group&Ltd&

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Date: 5th December 2012

Ticker: TECN (Swiss Exchange)
Price (05.12.12): 71 CHF

Recommendation: BUY
Price Target: 85 CHF

Highlights: TE CAN SUCCEED!
Market profile
High
Low
52 weeks price range
74.5
59.5
Market Cap (mio)
793.11
30 day avg volume
17509
3 month
12 month
Stock evolution
8.90%
11.20%
Shares outstanding
11445000
Free float
86%
Volatility
3%
Beta
1.32
Key ratio 2011
ROE
ROA

19.1%
13.1%

Profitability
Net Margin
EBIT Margin
Gross Margin
Efficiency
Asset turnover
Leverage
Avg total asset/Avg Equity
Liquidity ratio
Current ratio
Quick ratio
Solvency ratio
LT DEBT/EQUITY
DEBT/EQUITY
EQUITY/TOTAL ASSETS
ROIC (%)

12.6%
13.6%
50.9%

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Forecast summary

FY2010

FY2011

Net Sales

370.55

376.97

Growth %

-5.5%

1.7%

2.0%

EBITDA
Net Income

64.75
16.20

60.37
47.56

57.84
41.76

EPS

1.55

4.42

3.85

DPS

1

1

1.25



146.5%



1.2%
1.6%
0.69
40.4%



Porter Five Forces
Bargaining
Power of
Suppliers

Threat of
Subsitute
Products

4!
3!
2!
1!
0!

Competitive
Rivalry
within
Industry


Bargaining
Power of
Customers

413.38

2014E

2015E

450.59

498.35

7.5%

9.0%

10.6%

67.90
49.29

73.47
53.16

90.62
66.18

4.54

4.90

6.09

1.25

1.25

1.25

We recommend a BUY on Tecan, with a 12-month target price of CHF 85, corresponding to
a 22% upside from current stock price. Despite its little size, Tecan is a leader in the lab
automation market with 10% market share and is growing by innovation and...

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