Module 5 · Equity

Company Analysis: Past and Present

EN: Financial profile, business strategy, and competitive positioning.
VN: Hồ sơ tài chính, chiến lược, vị thế cạnh tranh.

1. Financial Profile Components Concept

Growth Historical revenue, earnings, FCF growth.
Profit Margins (gross, op, net) and trends.
Capital Capital structure, leverage, liquidity.
Returns ROIC, ROE, ROA.
CF quality CFO vs NI, FCF generation.

2. Business Profile Concept

Strategy Cost leader, differentiation, focus (Porter generic strategies).
Mix Geographic, product, customer concentration.
Position Market share, brand strength, scale.

3. Industry Analysis Inputs Concept

Lifecycle Embryonic, growth, shake-out, mature, decline.
5 Forces See M6 (competitive intensity, supplier/buyer power, substitutes, new entrants).
PEST Political, economic, social, technological drivers.

Practice problem Practice

Practice problem

A company has revenue growth of 25%/year for 3 years, gross margin rising from 30% to 45%, and ROE doubling from 8% to 16%. Which financial profile element is strongest?

Show solution

Growth: 25% revenue growth = strong.

Profitability: gross margin +15pp and ROE doubling = strong improvement.

Returns improvement is most striking — ROE doubling indicates significant operational leverage.

Profitability (and returns) improvement is the standout — likely scaling with operating leverage.