Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.
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Transcript of Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.
![Page 1: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/1.jpg)
IndustrialsBy: Brandon Harlow,
Bhavik Khandhar,Tracy Marsolo & Matt Shubeck
![Page 2: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/2.jpg)
Agenda• Sector Analysis• Business Analysis• Economic Analysis• Financial Analysis• Valuation Analysis• Recommendation• Q&A
![Page 3: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/3.jpg)
0.00%2.00%4.00%6.00%8.00%
10.00%12.00%14.00%16.00%18.00%20.00%
S&P 500 Weight vs. SIM Weight
S&P 500 Weight
SIM Weight
Industrials currently underweight in SIM Portfolio by 100 basis points.
Sector Analysis
![Page 4: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/4.jpg)
Sector’s Performance as of 5/6/09
MTD QTD YTDEnergy 8.46% 13.68% -0.05%Materials 5.65% 21.59% 18.17%Industrials 6.33% 25.17% -2.08%Consumer Discretionary 3.65% 22.86% 12.28%Consumer Staples 1.88% 4.97% -6.90%Health Care 2.01% 1.10% -7.51%Financials 15.64% 41.28% -0.39%Info Tech 2.10% 14.40% 18.92%Telecomm 4.25% 6.58% -2.45%Utilities 3.59% 4.03% -8.31%
![Page 5: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/5.jpg)
Industries in Industrials • Trucking • Trade Cos & Dist • Services-Office/Supp • Services-Environmental • Services-Employment • Research & Consulting • Railroads • Machinery Industrial • Machinery Const/Farm
• Ind'l Conglomerates • Electrical Component • Diversified Supp Ser • Construct. & Engineer. • Commercial Printing • Building Products • Airlines • Airfreight & Logistics • Aerospace/Defense
![Page 6: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/6.jpg)
10 Biggest Stocks in Industrials• General Electric• Caterpillar• Southwest Airlines• Textron• Honeywell Int'l• CSX Corp• Boeing• United Technologies• Union Pacific• UPS
• Top 10 make up 59.28% of Industrials
36.11%4.39%3.14%2.66%2.51%2.26%2.11%2.07%2.05%1.98%
![Page 7: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/7.jpg)
Business Analysis
![Page 8: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/8.jpg)
Phases of Lifecycle• Most companies are established companies
competing with a few major competitors.
Industrial Sector
![Page 9: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/9.jpg)
Industrial’s Price vs. S&P 500
![Page 10: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/10.jpg)
Manufacturer’s Inventories
![Page 11: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/11.jpg)
Industrial Production, Capacity, & Utilization
![Page 12: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/12.jpg)
Economic Analysis
![Page 13: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/13.jpg)
Industry and Economic Life Cycle
![Page 14: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/14.jpg)
Financial Analysis
![Page 15: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/15.jpg)
Net Profit Margin
![Page 16: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/16.jpg)
ROE
![Page 17: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/17.jpg)
EPS YOY Growth
![Page 18: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/18.jpg)
EPS YOY Growth
![Page 19: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/19.jpg)
Trailing P/E Relative toS&P 500
![Page 20: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/20.jpg)
Forward P/E Relative toS&P 500
![Page 21: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/21.jpg)
P/CF Relative to S&P 500
![Page 22: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/22.jpg)
P/B Relative to S&P 500
![Page 23: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/23.jpg)
Valuation Analysis
![Page 24: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/24.jpg)
Specific Industries in SectorRecommend• Industrial Conglomerates • Electrical Components
Avoid• Service-Employment• Building Products• Airlines
![Page 25: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/25.jpg)
Industrials
vs. S&P 500
P/E 1.2 0.66 1.1 0.73
P/S 1.1 0.8 1 0.9
P/B 1.4 0.9 1.1 1.1
P/CF 1.2 0.8 1.1 0.9
Industrials Sector
High Low Median Current
P/E 30.5 7.1 20.4 9.7
P/S 1.9 0.6 1.5 0.8
P/B 6.1 1.4 3.3 2.3
P/CF 16.7 4.9 12 6.7
![Page 26: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/26.jpg)
Conglomerates
![Page 27: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/27.jpg)
Electrical Components
![Page 28: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/28.jpg)
Electrical Components
![Page 29: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/29.jpg)
Services-EmploymentServices-Employment
High Low Median Current
P/E 1582.3 7.7 30.1 13.3
P/S 3.2 .5 1.9 .9
P/B 10. 1.7 5.2 2.6
P/CF 49.7 5.8 21.6 10
![Page 30: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/30.jpg)
Building Products
![Page 31: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/31.jpg)
Airlines
![Page 32: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/32.jpg)
Final Recommendation
Increase position in portfolio by 100 basis points. Match the S&P 500
![Page 33: Industrials By: Brandon Harlow, Bhavik Khandhar, Tracy Marsolo & Matt Shubeck.](https://reader036.fdocuments.net/reader036/viewer/2022081503/5697c02d1a28abf838cd9e58/html5/thumbnails/33.jpg)
Q & A
Q & A