Financial analysis report general motors company ford motor company daimler

Dissertation submitted in partial fulfillment of the Requirement for the MSc in Finance FINANCE DISSERTATION ON FINANCIAL ANALYSIS REPORT GENERAL MOTORS COMPANY FORD MOTOR COMPANY DAIMLER AG BAYERISCHER MOTOREN WERKE AKTIENGESELLSCHARF By DAO THI HUONG ID No: 19046146 Intake Supervisor: Ph.D Roberto Ercole September 2020 Tai ngay!!! Ban co the xoa dong chu nay!!! 17014126266441000000 FINANCE DISSERTATION ON FINANCIAL ANALYSIS REPORT GENERAL MOTORS COMPANY FORD MOTOR COMPANY DAIMLER AG BAYERISCHER MOTOREN WERKE AKTIENGESELLSCHARF By DAO THI HUONG ID No: 19046146 MSc in Finance - Intake ACKNOWLEGEMENT The MSc in Finance Program that is collaborated between University of the West of England and Banking Academy of Vietnam is a really good program for me All the knowledge, teachers and new friends from the course are all beautiful memories that I will never forget In particular, the two-week study tour at UWE Bristol is a great opportunity for me to have a deep experience of my life They are all solids for me to step on the road ahead Firstly, I would like to express my deepest thanks to my tutor – Ph.D Roberto Ercole with his advice and comments dedicated His comments are really very helpful and help me a lot in completing the dissertation Secondly, I would like to thank all the teachers of UWE and Banking Academy for giving me a lot of knowledge and experience in the subjects of this course As an indispensable part, I would like to express my deepest gratitude to my parents have always and forever supported me unconditionally in my life Last but not least, I would like to thank my classmates for all the memories that have gone through this course EXECUTIVE SUMMARY This paper studies the four leading companies in the automotive sector in world: General Motors Company, Ford Motor Company, Daimler AG, and Bayerischer Motoren Werke Aktiengesellscharf From the analysis of the company's internal and external situation, future prospects and valuation results to provide reasonable recommendations to investors who are interested in the stock of these companies With the result of macroeconomic analysis, the world economy in 2020 is expected to continue slowing down in 2020 due to significant impact of coronavirus Besides, trade war between the USA and China and the reduced level of concern regarding a potentially disorderly withdrawal of the UK from the EU also have effects on the economy, which will decrease the growth of this industry Following the company analysis, we see that General Motors Company and Bayerischer Motoren Werke Aktiengesellscharf have a good performce in terms of their financial statements and equally their shares prices, although their profit had a decrease in 2019 due to a bad situation of the economy Daimler had a low growth in revenues, but a sharply decline in net profit Ford appears to be in financial distress as its financial ratios show a worsening financial position and a high risk of bankcruptcy The intrinsic values of the four companies are estimated by applying the valuation by multiples ratios and discounted cash slow model In particular, the target price of General Motors Company, Ford Motor Company, Daimler AG, and Bayerischer Motoren Werke Aktiengesellscharf are $36.86, $4.57, €27.76, €79.60 respectively Combining all analyses, recommendations are made for each stock TABLE OF CONTENTS CHAPTER 1: INTRODUCTION CHAPTER 2: MACROECONOMIC ANALYSIS 2.1 World economic outlook for 2019 2.2 The US Economy 2.2.1 PESTEL analysis 2.2.2 Key macroeconomic factors analysis 11 2.3 European Economy 14 2.3.1 PESTLE Analysis 14 2.3.2 Key macroeconomic factors analysis 18 2.4 Asia – Pacific Economy 21 2.4.1 PESTLE Analysis 21 2.4.2 Key macroeconomic factors analysis 24 CHAPTER 3: INDUSTRY ANALYSIS 28 3.1 Industry Overview 29 3.1.1 Market value 29 3.1.2 Market volume 29 3.1.3 Market shares 30 3.1.4 Development trend 32 3.2 Porter’s Five Forces Analysis 33 3.2.1 Threat of new entrants: Weak 34 3.2.2 Bargaining power of suppliers: Weak 34 3.2.3 Bargaining power of buyers: Moderately strong 35 3.2.4 Threats of substitutes: Weak 35 3.2.5 Competitive Rivalry in the industry: Very strong 35 CHAPTER 4: COMPANY ANALYSIS 37 4.1 General Motors Company 38 4.1.1 Company’s profile 38 4.1.2 Development Strategy 40 4.1.3 SWOT Analysis 41 4.1.4 Financial Analysis 44 4.1.5 Valuation 51 4.1.6 Recommendation 54 4.2 Ford Motor Company 55 4.2.1 Company’s profile 55 4.2.2 Development Strategy 58 4.2.3 SWOT Analysis 59 4.2.4 Financial Analysis 64 4.2.5 Valuation 72 4.2.6 Recommendation 75 4.3 Daimler AG 76 4.3.1 Company’s profile 76 4.3.2 Development Strategy 78 4.3.3 SWOT Analysis 78 4.3.4 Financial Analysis 83 4.3.5 Valuation 90 4.3.6 Recommendation 93 4.4 Bayerischer Motoren Werke Aktiengesellscharf 94 4.4.1 Company’s profile 94 4.4.2 Development Strategy 96 4.4.3 SWOT Analysis 97 4.4.4 Financial Analysis .101 4.4.5 Valuation .108 4.4.6 Recommendation 111 CHAPTER 5: CONCLUSION 113 5.1 Conclusion and recommendation 114 5.2 Limitations of dissertation 115 REFERENCES 117 APPENDIX 1: General Motors Company 129 APPENDIX 2: Ford Motor Company .135 APPENDIX 3: Daimler AG .141 APPENDIX 4: BMW 147 LIST OF TABLES Table 1: Investment ratios of GM from 2015 to 2019 51 Table 2: Multiples ratio of Competitors’ GM 52 Table 3: Valuation GM's share by Valuation Multiples Method 52 Table 4: Valuation GM's share by Discounted Cash Flow Model 53 Table 5: Recommendation for General Motors Company’s share 54 Table 6: Investment ratio of Ford from 2015 to 2019 72 Table 7: Multiples ratio of competitors's Ford 73 Table 8: Valuation Ford's share by Multiples Method 73 Table 9: Valuation Ford's share by Discounted Cash Flow Model 74 Table 10: Recommendation for Ford's share 75 Table 11: Investment ratio of Daimler AG from 2015 to 2019 90 Table 12: Multiples ratio of Daimler AG's competitors 91 Table 13: Valuation of DAI's share by Multiples Method 91 Table 14: Valuation DAI's share by Discounted Cash Flow Model 92 Table 15: Recommendation for DAI's share 93 Table 16: Sales of BMW's automotive segment in 2018-2019 95 Table 17: Investment ratio of BMW from 2015 to 2019 108