BUS 1101-Widdel
Amanda Olson- Oct 26, 2012 1040 AM - Stock Data Table_Family Dollar[1].d
BUS 1101 Intro to Business
Stock Market Project Part One
Your Name: Amanda Olson, Ericka Doliber, Michael Pham, Justine
Sedesky, David Knaeble
STOCK DATA TABLE
Company Name/Description
Ticker
Industry Symbol
Family Dollar Stores, Inc.
operates a chain of self-service
retail discount stores primarily
for low and middle income
consumers in the United States.
The company offers
consumables and home
products comprising domestics. Discount
/Variety
It also provides apparel
Stores
products accessories, fashion
accessories; and seasonal and
electronics products, such as
toys, stationery and school
supplies, seasonal goods, and
personal electronics, including
pre-paid cellular phones and
services.
FDO
Stock
Exchange
Price of Stock
per Share
(a.k.a. Last
Trade)
Date of the
Given Stock
Price
NYSE
65.98
10/25/12
Important Data
Company CEO
Howard Levine
Market Capitalization
8.03B
Revenue
9.33B
Estimated Revenue (Next
Year)
11.38B
52 week range
53.03-74.73
% held by Institutions
89.50%
Return on Equity
35.41%
Industry Return on Equity
22.2%
Profit Margin
4.53%
Industry Profit Margin
3.7%
Debt/Equity
42.19
Industry Debt/Equity
63.7
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BUS 1101-Widdel
Amanda Olson- Oct 26, 2012 1040 AM - Stock Data Table_Family Dollar[1].d
Dividend & Yield
0.84(1.20%)
Industry Dividend Yield
2.0%
(P/E) Price/Earnings Ratio
19.28
Industry P/E
12.8
(P/B) Price to Book ratio
6.16
Industry P/B
3.6
(PEG) Price/Earnings to
Growth ratio
1.12
(P/S) Price/Sales
0.86
Quarterly Revenue Growth
10.80%
Quarterly Earnings
Growth
1.40%
Estimated Growth (This
year)
16.80%
Estimated Growth for
Industry (This year)
23.80%
Estimated Growth (Next
year)
13.20%
Estimated Growth for
Industry (Next year)
14.80%
1. After viewing the data for Family Dollar, I can see that the numbers look promising for a short term
investment. The debt to equity ratio is less that 50% (42.19) compared to the industry at 63.7. Also
the profit margin is higher than the industries at 4.53% versus 3.7%. Their return on equity is
positive at 35.41% versus the industries which is at 22.2%. This would be a good company to invest
in because all of the numbers seem promising. Also the 52 week range is right in the middle at
69.02 (according to yahoo finance, the stock is actually at 67.96) which leaves room for growth as
the 52 week range is from 53.03-74.73.
2. The Family Dollar also released that their 3rd quarter profit jumped 36% which promises a
very good outcome for the 4th quarter. They earned 87.7 million in comparison to the 64.7
million they made in previous quarters. The family Dollar projected a higher turnout than
Wall Street. More families are shopping at the Family Dollar due to the economic hardships
for their low prices and their discount products. Also with the holidays taking place within
this upcoming quarter that will also impact tremendously.
3. The Family Dollar is also updating their technology in their stores to help meet the needs of
their customers by accepting food stamps and credit cards. Family Dollar is also looking
into changing the layout of their stores so they can accommodate the demand of customers
and create a more enjoyable shopping experience. The family Dollar is a good investment
not just for the positive numbers on the stock market but also because they help the low to
middle class families. Family Dollars also started many institutions such as the Levine
Center for the Arts, Levine Museum of the New South, and the Levine Canter Institute. The
founder of the Family Dollar (Leon Levine) feels that donations are worthwhile
investments.
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BUS 1101-Widdel
Amanda Olson- Oct 26, 2012 1040 AM - Stock Data Table_Family Dollar[1].d
Nelson Peltz the owner of Arby’s and Wendy’s offered to pay 7 billion dollars to purchase the company.
Once this offer released Family Dollar’s shares went up by 25% within hours. It has gone up 35% within
the year. Currently they held 6.6% of the company’s shares and thought the amount per share was
“Undervalued”. Even after the Family Dollar more people are trying to persuade the company to sell and
Peltz still attempts to get the Family Dollar to cave.
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