The Estée Lauder Companies Inc., founded in 1946 by Estée and Joseph Lauder, is one of the world’s leading manufacturers, marketers, and sellers of

• Quality skin care,
• Makeup,
• Fragrance and
• Hair care products. 

Their products are sold in approximately 150 countries and territories under a number of theyll-known brand names including: Estée Lauder, Clinique, Origins, M·A·C, Bobbi Brown, La Mer, Aveda, Jo Malone London, Too Faced, Dr.Jart+, and The Ordinary. Estêe Lauder are also global licensee of brand names for fragrances and/or cosmetics, including Tom Ford and AERIN. Each brand is distinctly positioned within the market for cosmetics and other beauty products. Estêe Lauder are a leader in the beauty industry due to the global recognition of their brand names, their excellence in product innovation, strong position in key geographic markets and the consistently high quality of their products and “High-Touch” services. They sell their prestige products through distribution channels that complement the luxury image and prestige status of their brands, and they provide “High-Touch” consumer experiences across their distribution channels. Their products are sold on.

• Their own and authorized retailer theybsites,
• On third-party online malls, in stores in
• Airports,
• In duty-free locations and in our own authorized freestanding stores.

In addition, their products are sold in brick-and-mortar retail stores, including department stores, specialty-multi retailers, upscale perfumeries and pharmacies and prestige salons and spas. Estée Lauder strategy of pursuing selective distribution heightens the aspirational quality of their brands.

​Skin Care - products address various skin care needs. These products include moisturizers, serums, cleansers, toners, body care, exfoliators, acne care and oil correctors, facial masks, and sun care products.
Makeup - Their full array of makeup products includes lipsticks, lip glosses, mascaras, foundations, eyeshadows, nail polishes and powders. Many of the products are offered in an extensive palette of shades and colors. They also sell related items such as compacts, brushes, and other makeup tools.
 
Fragrance - They offer a variety of fragrance products. The fragrances are sold in various forms, including eau de parfum sprays and colognes, as theyll as lotions, powders, creams, candles, and soaps that are based on a particular fragrance.
 
Hair Care - Their hair care products include shampoos, conditioners, styling products, treatment, finishing sprays and hair color products.
Other - They also sell ancillary products and services.

Manufacturing, Warehousing and Raw MaterialsThe company manufactures its products primarily in its own facilities located in the

• United States,
• Belgium,
• Switzerland,
• the United Kingdom, and Canada.

They also utilize global third-party manufacturing networks. They continuously improve their manufacturing processes, seek sourcing opportunities, and aim to enhance innovation, efficiency, environmental sustainability, supply sufficiency, and cost reduction. Their modern plants are highly automated.

​To meet the increasing demand and expedite market access in the Asia/Pacific region, they began constructing a new manufacturing facility near Tokyo in fiscal 2021. The first phase of construction was completed in fiscal 2022, with the remaining site expected to be operational by early fiscal 2024. While they believe their current manufacturing network is sufficient, they strive to enhance capacity, technology, and productivity to align with regional sales demand. They have a flexible global distribution network managed by themselves or third-party logistic providers.

​This network is designed to adapt to changing customer demands while maintaining service levels. They continuously evaluate and adjust their physical distribution network, especially to anticipate and respond to shifts in distribution channels. They have strategically positioned regional and local distribution centers worldwide, including those operated by third parties, to ensure efficient product delivery to customers and consumers. In fiscal 2022, they opened a state-of-the-art distribution center in Switzerland to support the growth of their travel retail business and promote sustainability initiatives. They are confident that their manufacturing and distribution capabilities can meet annual and long-term strategic objectives, although short-term fluctuations in demand may temporarily challenge capacity for specific product subcategories.

Historical daily share price chart and data for the Estee Lauder  since 2019 adjusted for splits. The latest closing stock price for Estee Lauder as of August 04, 2023, is $172.

• The all-time high Estee Lauder's stock closing price was $370 on December 01, 2021.
• Estee Lauder's five years median stock price is $202.8 October 2020, which is 18% above the current share price.
• The Estee Lauder's  5 years third quantile stock price is $260 in February 2022, which is 51 % above the current share price.

​The Estée Lauder income statement represents the revenue for a business over the last four periods. Here's how the revenue changes over the four periods. Based on this data, we can observe a generally increasing trend in revenue from year 2020 to 2022, with a slight decrease in year 2023. It indicates that the business experienced growth in its revenue initially, followed by a slight decline.

The company faces significant competition in the markets where it sells its skin care, makeup, fragrance, and hair care products. Consumers consider various factors such as brand recognition, product quality, accessibility, distribution channels, and price when choosing among competing products. Marketing strategies, in-store and online experiences, product demonstrations, and new innovations also influence consumers' purchasing decisions. The company acknowledges the growing interest in responsibly sourced and environmentally sustainable products, which aligns with their social impact and sustainability efforts, providing a competitive advantage.

The company competes with both global and local companies, including major multinational manufacturers and marketers such as

• L’Oréal,
• Unilever,
• Procter & Gamble, Shiseido,
• LVMH, Natura & Co., Chanel,
• Beiersdorf, Coty, Kao Corp, and LG Household & Health Care.

Independent brands, supported by private-equity investors, and certain retailers with their own beauty brands also pose competition. It is worth noting that some competitors have ownership interests in retailers that are customers of the company. Overall, the company is a leading player in the industry, thanks to its diverse brand portfolio and presence on various sales channels.

​The quarterly data shows a mix of positive and negative growth rates. There are quarters with significant positive growth, such as Jun. 19 (23.5%), Sep. 19 (20.1%), and Mar. 21 (33.0%). However, there are also quarters with significant negative growth, such as Jun. 20 (-13.6%), Mar. 22 (-37.3%), and Jun. 22 (-46.0%). Overall, the data indicates fluctuations in growth over the specified period, with both periods of expansion and contraction.

​In summary, the company's total assets, total liabilities, and equity/net worth have changed over the three years. It is important we note that this data alone does not provide enough information to draw definitive conclusions about the financial health or performance of the company. Additional financial statements, such as income statements and cash flow statements, would be necessary for a more comprehensive analysis.
These trends indicate fluctuations in Estee Lauder assets and liabilities over the three-year period. However, we prefer to see assets are greater than liabilities.

McDonald’s Corporation (MCD) is a Global foodservice retailer that operated and franchised a total of 40,275 restaurants worldwide in 2022, up from 40,031 restaurants in 2021. The company has seen a year-over-year increase in restaurants for the last 17. Market-share leading quick service restaurant (QSR) with over 40 000 restaurants, $88bn systemwide sales, and $23bn revenue globally.

• Dominant player in largest QSR sub-category: burgers
• Geographically diversified – in terms sales:
• 48 % International
• 41 % U.S.A.
• 12 % Others.

·         Majority (82%) of MCD’s restaurants are operated by franchisees which pay MCD via two earnings streams:

• Brand royalty = 4% of sales
• Rent = 9% of sales (in cases where MCD owns the underlying real estate)
• Royalties and rent contribute to 75% of total EBITDA.

The Company franchises and operates McDonald’s restaurants, which serve a locally relevant menu of quality food and beverages in communities across more than 100 countries. Of the 40,275 McDonald's restaurants at year-end 2022, approximately 95% were franchised. Franchising enables an individual to own a restaurant business and maintain control over staffing, purchasing, marketing, and pricing decisions, while also benefiting from the strength of McDonald’s global brand, operating system, and financial resources. One of the strengths of this model is that the expertise gained from operating Company-owned restaurants allows McDonald’s to improve the operations and success of all restaurants while innovations from franchisees can be tested and, when viable, efficiently implemented across relevant restaurants. The company's restaurants offer hamburgers and cheeseburgers, chicken sandwiches and nuggets, fries, salads, shakes, frozen desserts, sundaes, soft serve cones, bakery items, soft drinks, coffee, and beverages and other beverages, as well as breakfast menu, including muffins, Sausages, biscuit and bagel sandwiches, oatmeal, hash browns, breakfast burritos and hotcakes. McDonald's Corporation was founded in 1940 and is headquartered in Chicago, Illinois.

​Breaking down and examining the percentage changes for each month for the year 2022. Volatility, the stock price of McDonald's appears to have experienced significant volatility throughout the year. Large positive and negative percentage changes indicate substantial fluctuations in market sentiment and investor perceptions. Overall Performance, while there are periods of positive performance, such as March, April, May, July, and October, there are also significant declines in other months, such as February, June, August, September, November, and December, and improved in last six months.

How does McDonalds Make money ?McDonald’s franchised restaurants are owned and operated under one of the following.

• Structures - conventional franchise,
• Developmental license or affiliate.

The optimal ownership structure for an individual restaurant, trading area or market (country) is based on a variety of factors, including the availability of individuals with entrepreneurial experience and financial resources, as well as the local legal and regulatory environment in critical areas such as property ownership and franchising. The business relationship between the Company and its independent franchisees is supported by adhering to standards and policies, including McDonald's Global Brand Standards, and is of fundamental importance to overall performance and to protecting the McDonald’s brand.
The Company is primarily a franchisor and believes franchising is paramount to

• Delivering great-tasting food,
• Locally relevant customer experiences and
• Driving profitability. 

Franchising enables an individual to be their own employer and maintain control over all employment related matters, marketing, and pricing decisions, while also benefiting from the strength of McDonald’s global brand, operating system and financial resources.
Directly operating McDonald’s restaurants contributes significantly to the Company's ability to act as a credible franchisor. One of the strengths of the franchising model is that the expertise from operating Company-owned restaurants allows McDonald’s to improve the operations and success of all restaurants while innovations from franchisees can be tested and, when viable, efficiently implemented across relevant restaurants. Having Company-owned and operated restaurants provides Company personnel with a venue for restaurant operations training experience. In addition, in our Company-owned and operated restaurants, and in collaboration with franchisees, the Company is able to further develop and refine operating standards, marketing concepts and product and pricing strategies that will ultimately benefit McDonald’s restaurants.
The Company’s revenues consist of sales by Company-operated restaurants and fees from restaurants operated by franchisees. Fees vary by type of site, amount of Company investment, if any, and local business conditions. These fees, along with occupancy and operating rights, are stipulated in franchise/license agreements that generally have 20-year terms. The Company’s Other revenues are comprised of fees paid by franchisees to recover a portion of costs incurred by the Company for various technology platforms, revenues from brand licensing arrangements to market and sell consumer packaged goods using the McDonald’s brand and, for periods prior to its sale on April 1, 2022, third-party revenues for the Company's Dynamic Yield business.
Conventional Franchise
Under a conventional franchise arrangement, the Company generally owns or secures a long-term lease on the land and building for the restaurant location and the franchisee pays for equipment, signs, seating and décor. The Company believes that ownership of real estate, combined with the co-investment by franchisees, enables it to achieve restaurant performance levels that are among the highest in the industry.
Franchisees are responsible for reinvesting capital in their businesses over time. In addition, to accelerate implementation of certain initiatives, the Company may co-invest with franchisees to fund improvements to their restaurants or operating systems. These investments, developed in collaboration with franchisees, are designed to cater to consumer preferences, improve local business performance and increase the value of the McDonald's brand through the development of modernized, more attractive, and higher revenue generating restaurants.

​McDonald’s compound annual average growth rate since 2012 is unimpressed of -1.72 %. Continuously present in the international market operations are slowing significant to McDonald’s revenues and net income. International revenues accounted for approximately 61% of their consolidated revenues in 2022.

Sources of revenues: Sales per businessMcDonald's Corporation is the world's biggest fast-food chain. Net sales break down by type of restaurants as follows:

• Franchised and affiliated restaurants (60.8%): owned, at the end of 2022, +40 000 franchises (of which 7,775 affiliates).
• Company-operated restaurants (37.7%): 2,736 restaurants.
• Other (1.4%).
• 61.8% of net sales are abroad.

The following Pie-chart presents segment revenue weight. As we see Franchise restaurants is the most important revenue provider. Franchise restaurants’ operating income increased 9% from 2021 to 2022. In 2022, total restaurant margins increased 5% (11% in constant currencies), which reflected strong sales performance across all segments.

Franchised margins represented nearly 90% of restaurant margin dollars.
Total restaurant margin growth was negatively impacted in both periods by foreign currency translation due to the weakening of all major currencies against the U.S. Dollar. Franchised margins in the U.S. reflected higher depreciation costs related to investments in restaurant modernization. Company-operated margins in the U.S. and International Operated Markets segment reflected positive sales performance driven by strategic menu price increases, and the negative impact of inflationary pressures. Results in the International Operated Markets segment were also negatively impacted by the restaurant closures in Russia and Ukraine. Total restaurant margins included $1,501 million of depreciation and amortization expenses in 2022.

​ Net sales are distributed geographically as follows: the United States (41%), International operate markets (49%),  and international development licensed (10).
As the home country of McDonald's, the United States has traditionally been one of its largest markets. McDonald's has a strong presence across the country, and the U.S. market accounts for a substantial portion of its global sales. In the western area we find that McDonald's has a significant presence in various European countries. Major markets in Europe include the United Kingdom, Germany, France, among others. Europe has been an important region for McDonald's in terms of sales and market share. However, other regions, such as Latin America, the Middle East, and Africa. These regions contribute to McDonald's overall sales, albeit to a lesser extent compared to the previously mentioned regions.

McDonald’s restaurants compete with international, national, regional, and local retailers of traditional, fast casual and other food service competitors. The Company measures its competitive position within the informal eating out ("IEO") segment, which is inclusive of the Company's primary competition of quick-service restaurants, but also includes 100% home delivery/takeaway providers, street stalls or kiosks, cafés, specialist coffee shops, self-service cafeterias, and juice/smoothie bars. The Company competes among quick-service restaurants primarily on the basis of price, convenience, service, experience, menu variety and product quality.
Intense competition
 McDonald’s competes primarily in the IEO segment, which is highly competitive. They also face sustained, intense competition from traditional, fast casual and other competitors, which may include many non-traditional market participants such as convenience stores, grocery stores, coffee shops and online retailers. They expect their environment to continue to be highly competitive, and our results in any particular reporting period may be impacted by a contracting IEO segment or by new or continuing actions, product offerings or consolidation of their competitors and third-party partners, which may have a short- or long-term impact on their results. McDonald competes primarily on the basis of product choice, quality, affordability, service, and location.
Fast food industry competitorsMcDonald's faces competition from several companies in the fast-food industry. Here are some of its major competitors:
Burger King: Burger King is a global fast-food chain that offers a similar menu to McDonald's, including burgers, fries, and chicken items. It is known for its flame-grilled burgers and has a strong presence in the United States and other countries.
Wendy's: Wendy's is another prominent fast-food chain that competes with McDonald's. It differentiates itself by offering a "fresh, never frozen" slogan for its beef patties and a menu that includes salads, chicken sandwiches, and Frosty desserts.
Subway: Although Subway is primarily known for its sandwiches, it competes with McDonald's by offering quick-service options. Subway emphasizes its healthier menu choices, including a variety of fresh ingredients and customization options.
KFC: Kentucky Fried Chicken (KFC) is a popular fast-food chain specializing in fried chicken. While its focus is different from McDonald's, it competes in the fast-food industry and has a significant global presence.
Taco Bell: Taco Bell is a fast-food chain known for its Mexican-inspired menu, including tacos, burritos, and quesadillas. While its offerings differ from McDonald's, it competes for customers seeking quick-service dining options.
 
Chipotle Mexican Grill: Chipotle is a fast-casual chain known for its customizable burritos, bowls, and tacos. While it operates in a slightly different segment, it competes for customers seeking quick and customizable dining options.
In-N-Out Burger: In-N-Out Burger is a regional chain in the western United States. It is known for its fresh, made-to-order burgers and limited menu. Despite its smaller footprint, In-N-Out Burger has a loyal customer base and competes for customers looking for quality fast-food options.

McDonald’s strengthOne of the strengths of the franchising model is that the expertise from operating Company-owned restaurants allows McDonald’s to improve the operations and success of all restaurants while innovations from franchisees can be tested and, when viable, efficiently implemented across relevant restaurants. Having Company-owned and operated restaurants provides Company personnel with a venue for restaurant operations training experience. In addition, in our Company-owned and operated restaurants, and in collaboration with franchisees, the Company is able to further develop and refine operating standards, marketing concepts and product and pricing strategies that will ultimately benefit McDonald’s restaurants.
Global presence: McDonald's is one of the world's largest fast-food chains, with a presence in over 100 countries. Its widespread network of restaurants gives it a significant advantage over competitors.
Brand recognition: McDonald's is a highly recognized and iconic brand globally. It has built a strong brand image over the years, which helps in attracting customers and driving sales.
Diversified menu: McDonald's offers a diverse menu with a wide range of options, catering to different tastes and preferences. This allows them to attract a broader customer base and adapt to changing consumer demands.
Operational efficiency: McDonald's has a well-established and efficient operating system, which enables them to maintain consistent quality, speed, and service across their restaurants. This efficiency helps them in delivering a consistent customer experience.
Strong franchising model: McDonald's operates on a franchising model, which allows them to expand rapidly without significant capital investment. Franchisees bear the cost and operational responsibilities, while McDonald's benefits from franchise fees and royalties
 
McDonalds OpportunityCommit to the Core menu by tapping into customer demand for the familiar and focusing on serving our iconic products such as our World Famous Fries, the Big Mac, our Chicken McNuggets and the McFlurry. Around the world, McDonald’s possesses 10 of these "billion-dollar brand equities." The Company will continue to improve on its classics by implementing a series of operational and formulation changes designed to deliver hotter, juicer, tastier burgers across the globe. While leaning into core icons like Chicken McNuggets, ongoing focus will include scaling emerging equities such as the McSpicy and McCrispy Chicken Sandwiches. The Company also continues to see a significant opportunity with coffee, demonstrated by markets leveraging the McCafé brand, customer experience, value and quality to drive long-term growth.
Expansion in emerging markets: McDonald's can capitalize on the growing middle-class populations and changing lifestyles in emerging markets, such as Africa region, China and India. These markets offer significant opportunities for growth and expansion.
Focus on healthier options: There is an increasing demand for healthier food choices. McDonald's can continue to enhance its menu with healthier alternatives, such as salads, grilled options, and organic ingredients, to attract health-conscious consumers.
Technology integration: McDonald's can leverage technology to improve customer experience and operational efficiency. This includes implementing self-order kiosks, mobile ordering and payment systems, and delivery services to cater to changing consumer preferences and convenience.
McDonald’s TreatsIntense competition: The fast-food industry is highly competitive, with numerous global and local players. McDonald's faces competition from both traditional fast-food chains and newer, innovative concepts, which could impact on its market share and profitability.
Changing consumer preferences: Consumer preferences and trends can change rapidly, and if McDonald's fails to adapt to these changes, it risks losing customers to competitors who offer more appealing options.
Regulatory pressures: McDonald's operates in multiple countries, each with its own regulations and policies related to labor, food safety, and advertising. Complying with these regulations can be challenging and costly, and changes in regulations can impact the company's operations and profitability.
 
McDonald’s Weakness
Health concerns: McDonald's has faced criticism for the nutritional value of its food offerings. As consumer preferences shift towards healthier options, McDonald's has had to adapt its menu to include healthier choices, but it still faces challenges in changing its perception as a fast-food chain associated with unhealthy food.
Dependence on franchisees: While the franchising model is a strength, it also poses a risk as McDonald's depends heavily on its franchisees for the consistent operation of its restaurants. If franchisees face financial or operational difficulties, it could impact McDonald's brand image and customer experience.
Vulnerability to market fluctuations: As a global company, McDonald's is exposed to currency exchange rate fluctuations, changes in labor costs, and economic downturns in different markets. Such factors can affect its profitability and financial performance.

​McDonald's Corporation has generally been considered financially healthy.  Here are some key points regarding McDonald's financial health: Revenue and profitability: McDonald's has consistently generated significant revenue and maintained a strong level of profitability. Its global presence and brand recognition have contributed to its ability to generate sales and drive profitability. McDonald's operates primarily on a franchising model, which has proven to be financially beneficial. Franchisees contribute to the company's revenue through franchise fees and ongoing royalties, while also bearing the costs of operating individual restaurants. This model allows McDonald's to expand without significant capital expenditure and helps in maintaining a steady cash flow. As today McDonald’s have a strong cash flow: McDonald's has historically demonstrated strong cash flow generation, which is essential for supporting 

​ongoing operations, investing in new initiatives, and returning value to shareholders through dividends and share repurchases. Adaptability, investment in technology and innovation, McDonald's has been investing in technology initiatives to enhance customer experience and operational efficiency. This includes digital ordering and payment systems, self-order kiosks, and delivery services. Such investments can position the company for future growth and competitiveness. However, it’s important to note that while McDonald's has generally maintained a strong financial position, it faces challenges and risks that can impact its financial health. These include factors like changing consumer preferences, intense competition, and economic conditions in different markets and their liabilities are greater than their assets. 

Chris Kempczinski (54 Y)
3.7 years average management tenure
US$17,770,514 Compensation
Mr. Christopher J. Kempczinski, also known as Chris, has been the President, Chief Executive Officer, and Director at McDonald's Corporation since November 1, 2019. He serves as an Independent Director at The Procter & Gamble Company since October 12, 2021. He served as President of USA at McDonald's Corporation since January 1, 2017, until 2019.
He served as President at McDonald's USA, LLC since January 01, 2017, until 2019. He served as Executive Vice President of Strategy, Business Development & Innovation at McDonald's Corporation since October 26, 2015, until December 2016. He first joined McDonald’s in 2015, overseeing global strategy, business development and innovation. He oversaw all aspects of strategy development, planning, innovation, and new concepts to drive growth for the company.
He served as the President of International and Executive Vice President of Growth Initiatives at Kraft Foods Group, Inc., since February 12, 2015, until September 2015. He served as the President of Kraft Canada Inc since July 2012 until December 2014 and served as Senior Vice President - U.S. Grocery from December 2008 to July 2012. Before joining McDonald, he held several leadership roles at The KraftHeinz Company (packaged food), including Executive Vice President at Kraft Foods Group, Inc since January 29, 2014 until February 2015.
He leads Kraft’s Canadian business unit overseeing all aspects of supply chain, sales, marketing, human resources and research, development, and quality. He has full P&L responsibility for the business including beloved brands such as Kraft Dinner, Kraft Peanut Butter, Cracker Barrel natural cheeses and Nabob coffee. During his time with Kraft Canada, he has led the business unit through transformative change with the separation from Mondelez International in October 2012 and later restructuring the organization’s resources to focus on simplification and innovation. He joined Kraft in 2008 as Senior Vice President overseeing brands in the meals and enhancers categories with iconic brands like Kraft Macaroni & Cheese and Kraft dressings.

Bayer AG operates as a life science company worldwide, it is one of the world's leaders in designing, producing, and marketing,

• Pharmaceutical products,
• Consumer Health, and
• Crop Science/agrochemicals.

The Pharmaceuticals segment offers prescription products primarily for cardiology and women's health care; specialty therapeutics in the areas of oncology, hematology, and ophthalmology; and diagnostic imaging equipment and contrast agents, as well as cell and gene therapy.
The Consumer Health segment markets nonprescription over-the-counter medicines, medical products, medicated skincare products, nutritional supplements, and self-care solutions in dermatology, nutritional supplements, pain and cardiovascular risk prevention, digestive health, allergy, and cold and cough.
The Crop Science segment offers chemical and biological crop protection products, improved plant traits, seeds, digital solution, and pest and weed control products, as well as customer service for agriculture. This segment also provides

• breeding,
• propagation, and
• production/processing of seeds, including seed dressing.

The company has a collaboration agreement with MD Anderson Cancer Center to develop oncology drugs; research and license agreement with Dewpoint Therapeutics, Inc. for the development of new treatments for cardiovascular and gynecological diseases; collaboration agreement with Exscientia Ltd, Foundation Medicine Inc., and Evotec AG; research collaboration with Arvinas Inc.; strategic research partnership with University of Oxford to develop novel gynecological therapies; and Kyoto University to identify new drugs candidates for the treatment of pulmonary diseases. It distributes its products through wholesalers, pharmacies and pharmacy chains, supermarkets, online and other retailers, and hospitals, as well as directly to farmers. 

Net sales are distributed by product family as follows:

• agrochemicals (49.6%): herbicides, fungicides, insecticides, etc.
• pharmaceutical products (37.9%): intended for the prevention and treatment of cardiovascular and respiratory diseases, diabetes, nervous system disorders, etc.;
• OTC products and nutritional supplements (12%);
•  other (0.5%).

​As we see in the picture above, Bayer AG owns and markets a wide range of brands across its different business segments. Some of the notable brands include pharmaceuticals, such Aspring, Xarelo, Adalat, Levitra and Nexavar. Bayern’s widely recognized agriculture brands are Roundup, Dekalb, Seresto, Poncho and Basta, in addition to the agriculture and pharmaceuticals brand,  Bayern owns a trusted and popular brand such as Claritin, Alveve and DR. Scoll’s.

Historical daily share price chart and data for Bayer AG since 2017 adjusted for splits. The latest closing stock price for Bayer as of April 08, 2023, is 60.

• The all-time high BAYER stock closing price was 137.65 on March 01, 2015.
• The BAYER 5 years median stock price is 15.82, which is 73.6% below the current share price.
• The BAYER 5 years third quantile stock price is 21.63, which is 63.4% below the current share price.
• The 5 years average BAYER stock price is 17.68. We can see the red line in the following chart.

​It is with a good reason once, George Box said, “ All models are wrong, but some are useful”.
Many widely used financial models assume a normal distribution of stock price returns, despite increasing evidence that this is not the case. These assumptions ignore the real chances of extreme events and fluctuations occurring, as we can see few declines greater than 8 %, with one recently in March 2020 decline over 10% in ROC model, therefore we can observe they underestimate the risk of investing in the market.
Briefly the most significant difference in the case between normal and power law distributions is tail size. Power law distributions have fatter tails than normal distributions, meaning that the probability of extreme events happening is much higher in power law distributions than in those that are normal.
When we look at BAYER last 1000 trading days distribution, it is clear that 80 % of the price fluctuation falls within the range of [ 13 to 16].

BAYRY Yearly Adjusted price
2017-12-29          25.22
2018-12-31          21.79
2019-12-31          15.70
2020-12-31          15.20
2021-12-31          14.32
2022-12-30          14.49
2023-04-03          15.30

Bayer is leader in life sciences, it aims to improve health and spread health around the world by focusing on innovation and sustainability core competitive advantage. As date April 2023 Bayer is the world's 229th most valuable company by market cap according to our data. 
 
The following chart provide a summary of
BAYER AG.  Income Statements

Eleven-years compound annual growth rate in revenue.
The revenue CAGR for Bayer (BAYN.BE) stock is 0.37% for the period of 2022.  Compound annual growth rate (CAGR) is a commonly used business and investing term that measures the growth of a metric over multiple periods. CAGRs are useful since they reduce the effect of volatility in specific periods, unlike arithmetic means. We can conclude that Bayer has one of the worst CAGR within the blue-chip companies.

Price to Earnings Ratio vs IndustryBayer AG ~ Price-To-Earnings vs Peers: As date April 2023 BAYN is good value based on its Price-To-Earnings Ratio 14.3x compared to the peer average 27.8x.
Performance Highlights

​Bayer AG generates 8 cents for each dollar of sales, while Eli Lilly, which operates in the same sector generates 3x than Bayer. Based on the latest financial disclosure, Bayer AG performs far less than that of the drag manufactures sector and significantly less than that of the pharmaceuticals industry. The P/E ratio is an excellent indicator that we can rely on while investing in equites. Comparing Bayer’s P/E ratio and market cap 

​Since a stock's share price can swing wildly from day to day and week to week, we had argued that a market cap is not really the best way to determine what a company is worth. Using discounted cash flow analysis is a more useful way to value a company (and thus know what to pay for its shares), though as with any valuation method it has its own flaws.

​We notice that on the table, Bayern overall had bad performance for several years.

Some of the key competitors of Bayer AG in each of its business segments are:
Pharmaceuticals:

• Johnson & Johnson
• Pfizer Inc.
• Novartis International AG
• Merck & Co., Inc.
• GlaxoSmithKline plc

Agriculture:

• Syngenta AG
• Corteva, Inc.
• BASF SE

Monsanto Company (now part of Bayer AG)
DowDuPont Inc.
Consumer Health:

• Johnson & Johnson
• GlaxoSmithKline plc
• Procter & Gamble Co.
• Sanofi S.A.
• Reckitt Benckiser Group plc

Swot Analysis of BayerThe goal of SWOT analysis is to  formulate a successful strategy for the future. Accordingly, the SWOT analysis of Bayer is carried out.
Strengths:Strong brand portfolio: Bayer AG owns and markets well-known brands in the pharmaceuticals, agriculture, and consumer health sectors, which provide a competitive advantage in the market. Diversified business segments: Bayer AG operates in multiple industries, including pharmaceuticals, agriculture, and consumer health, which diversifies its revenue streams and reduces dependency on a single market.
Research and development capabilities: Bayer AG has a strong focus on research and development (R&D), investing significantly in innovation to develop new products and technologies, which can lead to competitive advantages and market leadership. Global presence: Bayer AG has a global presence with operations in multiple countries, which provides access to diverse markets and customer bases.
Weaknesses:Litigation risks: Bayer AG has faced and continues to face legal challenges related to its acquisition of Monsanto and the alleged harmful effects of glyphosate-containing products, which could result in financial liabilities and reputational damage. Integration challenges: The acquisition of Monsanto has posed integration challenges for Bayer AG, including cultural differences, operational complexities, and regulatory hurdles. Dependence on key products: Bayer AG's revenue is dependent on a few key products, including Xarelto and Eylea, which exposes the company to risks associated with product concentration and potential loss of exclusivity.
Opportunities:Growth in emerging markets: Bayer AG has opportunities for growth in emerging markets, where rising population, urbanization, and increasing healthcare and agricultural needs present significant market potential. Expansion of digital solutions: Bayer AG can leverage digital technologies, such as data analytics, precision farming, and telemedicine, to develop and market innovative solutions for the pharmaceuticals and agriculture sectors. Focus on sustainability: The increasing demand for sustainable products and practices presents an opportunity for Bayer AG to develop and market environmentally friendly products and solutions, aligning with changing consumer preferences and regulatory trends.
 
Threats:Competitive landscape: Bayer AG faces intense competition from other global players in the pharmaceuticals, agriculture, and consumer health sectors, which could impact its market share, pricing, and profitability. Regulatory challenges: Bayer AG operates in highly regulated industries, and changes in regulations related to product approvals, pricing, labeling, and safety could pose challenges and impact its business operations. Economic and market risks: Bayer AG is exposed to risks associated with economic and market factors, such as currency fluctuations, inflation, trade policies, and geopolitical uncertainties, which could impact its financial performance and operations.

Average management tenure 5.1 years.
CEO – Wernwr Baumann (60 years young): have 13.3 years tenure, with a
compensation of  €7,825,000
Mr. Werner Baumann has been Chairman of Management Board and Chief Executive Officer at Bayer AG since May 1, 2016 and has been its Member of Management Board since January 1, 2010. Since January 1, 2020, Mr. Baumann is a Chief Sustainability Officer of Bayer AG. He served as Labor Director at Bayer AG.
until January 31, 2021. Mr. Baumann served as Chief of Strategy & Portfolio Management - Europe / Middle East / Africa Region at Bayer AG. He served as the Chairman of Management Board and Chief Executive Officer of Bayer HealthCare AG from March 31, 2015 to December 2015. He served as the Chief Strategy & Portfolio Officer of Bayer AG from October 1, 2014 to May 1, 2016 and was responsible for the Europe, Middle East and Africa Region.

​He served as Chief Financial Officer of Bayer AG from January 1, 2010 to October 1, 2014. He served as the President of Business Development & Licensing at Bayer HealthCare AG since March 1, 2006 and also served as its President of Central Administration & Organization from July 2002 to 2009. He joined Bayer AG in Leverkusen as a Commercial Trainee on April 1, 1966. Mr. Baumann served as a Member of Management Board at Bayer HealthCare AG since October 1, 2003 and served as its Labor Director.
As a member of the Board of Management and Labor Director of Bayer Schering Pharma AG, Berlin, Germany, from 2006 through September 2009, he actively participated in its integration into the former HealthCare subgroup. He served as Vice President of German Chemical Industry Association (VCI), Frankfurt. He served as President of German Chemical Industry Association from September 2005 to September 2007 and Vice President of Federation of German Industries (BDI), Berlin. He served as Head of Business Planning & Administration at Bayer HealthCare AG until 2002.

​He joined Bayer AG in 1988 and served in Southwest Europe section of Corporate Finance Department. He served as Controller of Bayer Hispania Commercial in Barcelona, Spain since 1991 and also served as Assistant to Managing Director since 1995. He moved to Bayer Corporation in Tarrytown, New York, where he held various positions in Bayer's global Diagnostics Business Group. Since 1978, he served as Managing Director and administrative head of the Peruvian company.
Since April 1996, he served as Head of Corporate Planning and Controlling in Leverkusen. From 1970 to 1975, Mr. Baumann established and managed the finance and accounting department of Bayer Industrial S.A. He serves as Chairman of Supervisory Board at Bayer CropScience AG. He served as Chairman of Supervisory Board at Covestro AG until March 26, 2015.
He serves as a Member of Supervisory board of Henkel KGaA. He serves as a Member of the Advisory Council at Allianz Global Corporate & Specialty SE. Mr. Baumann served as a Member of Supervisory Board at Bayer Business Services GmbH. He studied Economics from RWTH Aachen Technical University and the University of Cologne.

Norges Bank Investment Management owns 27.5 million shares of Bayer AG, represents 2.8% of total shares outstanding, as of April 2023.  Norges Bank investment, which manages the Government Pension Fund abroad on behalf of the Ministry of Finance. The value of the fund was NOK 14,372 billion in April  2023.

Safaricom PLC is a leading telecommunication company in East Africa. It provides

• Voice, messaging, mobile data,
• and M-PESA payment, as well as
• Home fiber services.
• Mobile and fixed line services; and internet of things, and
• Cloud and hosting services.

The company also offers DigiFarm, an integrated mobile platform that offers farmers with a suite of products, including financial and credit services, farm products, and customized information on farming best practices; and operates Masoko, an e-commerce portal.
In addition, it provides m-tiba, a health payment application; M Salama platform; FULIZA, ​an overdraft facility that allows customers to complete their transaction in case of insufficient funds; M-Shwari, a micro-lending/savings product; M-Kesho, an equity bank account; and Shupavu291, an education platform that enables students to study without an internet connection. The company serves individual, corporate, and SME customers, as well as government agencies. It sells its products and services through dealers and retail outlets. Safaricom PLC was incorporated in 1997 and is based in Nairobi, Kenya. As today Safaricom PLC serves over 42 million customers connected and play a critical role in the society, supporting over one million jobs both directly and indirectly while our total economic value was estimated at KES 362 Billion ($ 3.2 billion) for the 12 months through March 2021. They are listed on the Nairobi Securities Exchange (NSE) and with annual revenues of close to KES 298 Billion ($2.5 billion) as at March 2022. 

CAGRs are useful since they reduce the effect of volatility in specific periods, unlike arithmetic means. We can find the calculation details for Safaricom’s Revenue CAGR outlined below. The calculation starts by listing values for Revenue for the last ten fiscal years that are required to calculate CAGR: ​

​Safaricom ~ Price-To-Earnings vs Peers: SCOM is good value based on its Price-To-Earnings Ratio 14x compared to the peer average 24.2x. 

The Kenya Telecom Market is expected to witness growth CAGR of 2.00% during the forecast period of 2021 to 2026, this is approximately a valuation of $3.5 billion. Most of the major telecom companies in Kenya, such as Safaricom, Airtel, and Telkom, are promote innovation by making significant R&D investments consistently. The Kenya’s telecommunication sector, which underpins the operations of all enterprises, public safety groups, and the government, is a crucial part of the country's economy.
The number of active mobile subscriptions as 31 March 2023 stood at 61.4 million, representing an increase of 2.6% from the preceding quarter. Subsequently, mobile (SIM) penetration grew, 
​by 3.3% points to stand at 129.1% during the period under review. During the same period, the data for Jamii Telecommunications Limited – a privately owned Kenyan telecommunication service provider offering broadband and mobile services under the "FAIBA" brand – is included in cellular mobile services sub-section which main services are delivering mobile data through 4G but also include Voice over LTE (VoLTE).

​Safaricom celebrated the 15th anniversary of the introduction of M-PESA with various awareness campaigns. With its over 30 million monthly active customers, more than 3.2 million businesses, and over 42,000 developers engaged in ongoing development within the Super Apps, some 50 million transactions per day, and a velocity of funds exceeding KShs 2 trillion monthly, M-PESA truly constitutes a massive ecosystem whose potential is only just beginning to make itself felt.

​Average management tenure 2.3 years.
CEO – Peter Nfegwa (53 years young): have 2.9 years tenure, with a compensation of KSH 288 930 000. 

Mr. Peter Waititu Ndegwa has been Chief Executive Officer and Executive Director of Safaricom PLC since April 1, 2020. He serves as the Chief Executive Officer of Safaricom PLC. at Vodacom Group Limited since April 1, 2020. He served as the Chief Executive Officer and Managing Director of Guinness Nigeria Plc from September 4, 2015 until June 30, 2018.
Mr. Ndegwa served as Managing Director of Guinness Ghana Breweries Ltd. until July 20, 2015. Mr. Ndegwa served as Group Finance Director of East African Breweries Ltd., since August 28, 2008 and served as its Managing Director of Serengeti Breweries Limited. He was responsible for Diageo PLC operations in 50 countries in Western and Eastern Europe, Russia, Middle East and North Africa regions. 

Mr. Ndegwa has experience in sales, Financial Services, General Management, Fast Moving Consumer Goods (FMCG), Business strategy, Finance Operations, business advisory and finance in a variety of sectors including retail, manufacturing, banking and insurance and general services. He joined EABL as Head of Group Strategy in January 2004 and Change Director Sales since March 2006, Head a radical change programme within the sales and commercial area. He served as EABL Sales Director of Kenya. He trained and worked with PricewaterhouseCoopers, in a variety of senior roles both in Eastern Africa and in the UK and served as an Associate Director in the Corporate Finance and Strategy practice.
He holds an MBA in Strategy and Finance from the London Business School and an Economics degree from the University of Nairobi. He is also a Certified Public Accountant.

​Safaricom were founded in 1997 as a fully owned subsidiary of Telkom Kenya before a 40 percent acquisition by Vodafone Group PLC in May 2000, and a public offering of 25 percent shares through the NSE in 2008.

Alphabet Inc. is a holding company which are organized around 6 areas of activities: the largest of which is Google. Google is divided in two segments, Google Services and Google Cloud; they also report all non-Google businesses collectively as Other Bets. YouTube provides people with entertainment, information, and opportunities to learn something new. And Google Assistant offers the best way to get things done seamlessly across different devices, providing intelligent help throughout a person's day, no matter where they are. To achieve their objective goal Google are continually innovating and building new product features that will help their users, partners, customers, and communities. Google have invested more than $100 billion in R&D over the last five years.
 
Other Bets also remain focused on innovation through technology that can positively affect people's lives. For instance, Waymo is working toward making transportation safer and easier for everyone and Verily is developing tools and platforms to improve health outcome. Nest Labs is develops and production of home automation solutions: Wi-Fi networks synchronized with the control programs for thermostats, smoke detectors and security systems; while Google X research into artificial intelligence.
Google Ventures an investment services: management of an investment fund devoted to young businesses that operate in the new technology sector and Goggle capital an investment fund intended for already developed companies. Google Fiber focuses  on fiber optic internet access network infrastructure. The company was founded in 1998 and is headquartered in Mountain View, California.

Currenly stock price as first February 2023 is at the red arrow, which is $99. Base of the histogram distrubution this price is at the second lowest price range since 2018. Most of the Googles stock price is distributed at a range of $60 to $70.

We notice that 2022 was the worst year for Google so does for technology sector as a whole.

​Google have built world-class advertising technologies for advertisers, agencies, and publishers to power their digital marketing businesses. Their advertising solutions help millions of companies grow their businesses through Google’s wide range of products across devices and formats, and they aim to ensure positive user experiences by serving the right ads at the right time and by building deep partnerships with brands and agencies.
Google Services generates revenues primarily by delivering both performance and brand advertising that appears on Google Search & other properties, YouTube and Google Network partners' properties ("Google Network properties"). This means in practice.

• Performance advertising creates and delivers relevant ads that users will click on, leading to direct engagement with advertisers. Performance advertising lets their advertisers connect with users while driving measurable results. Google ads tools allow performance advertisers to create simple text-based ads.
• Brand advertising helps enhance users' awareness of and affinity for advertisers' products and services, through videos, text, images, and other interactive ads that run across various devices. They help brand advertisers deliver digital videos and other types of ads to specific audiences for their brand-building marketing campaigns.
• Google Cloud Google is a company built in the cloud. Google Cloud Platform generates revenues from infrastructure, platform, and other services.
  • Google Workspace generates revenues from cloud-based collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar and Meet.

Their cloud services are generally provided on either a consumption or subscription basis and may have contract terms longer than a year.

​Google’s compound annual average growth rate since 2012 is astonishing of 19.9 %. Continuously present in the international market operations are growing significant to Google’s revenues and net income. International revenues accounted for approximately 54% of our consolidated revenues in 2021.

​the most important revenue provider. Google services operating income increased $37.2 billion from 2020 to 2021. The increase was due to growth in revenues partially offset by increases in TAC, content acquisition costs, compensation expenses, advertising and promotional expenses, and charges related to certain legal matters.

Google  business is characterized by rapid change as well as new and disruptive technologies. They face formidable competition in every aspect of their business, including from:
General purpose search engines and information services, such as Baidu, Microsoft's Bing, Naver, Seznam, Yahoo, and Yandex.
Vertical search engines and e-commerce providers, such as Amazon and eBay (e-commerce), Booking's Kayak (travel queries), Microsoft's LinkedIn (job queries), and WebMD (health queries). Some users will navigate directly to such content, websites, and apps rather than go through Google.
​Social networks offered by ByteDance, Meta, Snap, and Twitter. Some users increasingly rely on social networks for product or service referrals, rather than seeking information through traditional search engines. Other online advertising platforms and networks, such as Amazon, AppNexus, Criteo, and Meta, that compete for advertisers that use Google Ads, our primary auction-based advertising platform.
 
Other forms of advertising, such as billboards, magazines, newspapers, radio, and television. Their advertisers typically advertise in multiple media, both online and offline. Companies that design, manufacture, and market consumer hardware products, including businesses that have developed proprietary platforms, such as Amazon, Apple, and Microsoft. Digital assistant providers, such as Amazon and Apple.
 
Providers of enterprise cloud services, such as Alibaba, Amazon, Microsoft, and Salesforce.
Providers of digital video services, such as Amazon, Apple, AT&T, ByteDance, Disney, Hulu, Meta, and Netflix. Other digital content and application platform providers, such as Amazon and Apple. Providers of workspace connectivity and productivity products, such as Meta, Microsoft, Salesforce, and Zoom.
 
Competing successfully depends heavily on their ability to develop and distribute innovative products and technologies to the marketplace across our businesses. Specifically, for advertising, competing successfully depends on attracting and retaining: users, for whom other products and services are literally one click away, largely on the basis of the relevance of our advertising, as well as the general usefulness, security, and availability of our products and services; advertisers, primarily based on our ability to generate sales leads, and ultimately customers, and to deliver their advertisements in an efficient and effective manner across a variety of distribution channels; and content providers, primarily based on the quality of our advertiser base, our ability to help these partners generate revenues from advertising, and the terms of our agreements with them.

Google’s TreatsGoogle might had enjoyed the dominance of search engine marketplace for quite some time, however lately trend from TikTok, I don’t search I TikTok is taking gradually more of Google’s marketplace.  As date Google has market share of  +80% in desktop searches worldwide. Google’s next competitor Bing is working to integrate ChatGPT with its search engine, that is supported by OpenID to power Bing, this might be the start of  the real Google’s challenge.
Google’s OpportunitiesThe shift to online, as well as the advent of the multi-device world, has brought opportunities outside of the U.S., including in emerging markets, such as India. Google are continue to invest heavily and develop localized versions of our products and advertising programs relevant to their users in these markets. This has led to a trend of increased revenues from emerging markets. Google expect that their results will continue to be affected by their performance in these markets, particularly as low-cost mobile devices become more available. This trend could affect our revenues as developing markets initially monetize at a lower rate than more mature markets.
Every year, there are trillions of searches on Google, and 15% of the searches we see every day are new. Google continue to invest deeply in AI and other technologies to ensure the most helpful search experience possible. YouTube provides people with entertainment, information, and opportunities to learn something new. And Google Assistant offers the best way to get things done seamlessly across different devices, providing intelligent help throughout a person's day, no matter where they are.
To diversify its revenue stream, Google is placing big bets on its cloud services. Cloud Services: In fiscal year 2021, about 7.5% ($19.2 Billion) of Google’s annual revenue came from its Google Cloud Platform (GCP) and its service.
Google’s weaknessIn 2021 Google generated more than 80% of total revenues from the display of ads online. Heavily overdependence on Advertisement: 80% of its total revenue  generates from  its advertisement related. Advertisement space is highly cyclical, competitive, and rely heavily on macroeconomic conditions. Inflation is 40 years high, this might affect consumers’ confidence and hurt Google’s revenue. 

Unfair Business Practices: As the most used search engine, Google exploits this advantage unfairly to prevent the entry new actors in the sector. Politicians are keep monitoring Google’s privacy practice. 

​Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value.

​Google’s operations and financial results are subject to various risks and uncertainties, including but not limited to those described below, which could harm our business, reputation, financial condition, and operating results, and affect the trading price of our Class A and Class C stock.

They generate a significant portion of their revenues from advertising, and reduced spending by advertisers, a loss of partners, or new and existing technologies that block ads online and/or affect our ability to customize ads could harm our business.
 
As date Google generated more than 80% of total revenues from the display of ads online in 2021. Many of their advertisers, companies that distribute our products and services, digital publishers, and content providers can terminate their contracts with us at any time. These partners may not continue to do business with us if we do not create more value (such as increased numbers of users or customers, new sales leads, increased brand awareness, or more effective monetization) than their available alternatives. Changes to their advertising policies and data privacy practices, as well as changes to other companies’ advertising and/or data privacy practices have in the past, and may in the future, affect the advertising that we are able to provide, which could harm our business. In addition, technologies have been developed that make customized ads more difficult or that block the display of ads altogether and some providers of online services have integrated technologies that could potentially impair the availability and functionality of third-party digital advertising.
 
In addition, expenditures by advertisers tend to be cyclical, reflecting overall economic conditions and budgeting and buying patterns. Adverse macroeconomic conditions have affected, and may in the future affect, the demand for advertising, resulting in fluctuations in the amounts our advertisers spend on advertising, which could harm our financial condition and operating results.

R&D is a vital post for technology companies. Google are continually innovating and building new product features that will help users, partners, customers, and communities. They have invested more than $100 billion in R&D over the last five years. Google’s R&D expenses increased $4.0 billion from 2020 to 2021. The increase was primarily due to an increase in compensation expenses of $3.5 billion, largely resulting from an 11% increase in headcount, and an increase in professional service fees of $516 million. This increase was partially offset by a reduction in depreciation expense of $450 million including the effect of our change in the estimated useful life of their servers and certain network equipment.

Sundar Pichai(49Y)
6.1-years average management tenure
$ 6,322,599 compensation
Mr. Sundar Pichai is Chief Executive Officer at Alphabet Inc. since December 2019. Mr. Pichai has been the Chief Executive Officer of Google Inc., since October 02, 2015. Mr. Pichai leads the product management and innovation efforts for a suite of Google's search and consumer products, including iGoogle, Google Toolbar, Desktop Search and Gadgets, Google Pack and Gears.

He has experience developing high-tech consumer and enterprise products. Mr. Pichai served as Senior Vice President of Products at Google Inc. (currently known as Alphabet Inc.) from October 2014 to October 2, 2015. He served as Senior Vice President of Android, Chrome & Apps at Google Inc. from March 2013 to October 2014. Mr. Pichai served as the Head of Android Mobile Software Division at Google Inc. since March 2013.

He served as the Head of the Chrome Browser & Computer Operating System at Google Inc. He served as Senior Vice President of Chrome at Google Inc. from April 2011 to March 2013. He served as Vice President of Product Management at Google Inc. He joined Google in 2004. Prior to Google, he served various engineering and product management positions at Applied Materials and served as Management Consultant of McKinsey & Company, Inc. for a variety of software and semiconductor clients. He has been a Director of Alphabet Inc. since July 19, 2017.

​He served as a Director of Jive Software, Inc. from March 2011 to July 30, 2013. He served as a Member of Board of Advisors at Ruba, Inc. He was awarded an Institute Silver Medal. He was named a Siebel Scholar and a Palmer Scholar at the Wharton School. Mr. Pichai received Bachelor of Engineering degree with honors in metallurgical engineering from the Indian Institute of Technology, Kharagpur.
He holds an M.S. in Engineering and Materials Science from Stanford University and an MBA from the Wharton School of the University of Pennsylvania

BusinessVolvo Car AB is a Sweden-based automotive brand. Volvo Car Group is focused on the design, engineering, manufacturing, distribution, and sale of passenger cars, with particular focus on sustainability, fully electric cars, and direct consumer relations, including subscription and other new mobility services. Volvo Car Group addressable market is the global premium passenger car market. Moreover, the Company intention is to be a pure electric car company and as a result it is undergoing a shift in its business model to a direct sales model in most of its markets. Volvo Cars commitment to electrification also results in the launch of Polestar, a progressive stand-alone electric performance car brand, in which Volvo Cars owns shares. Volvo Cars also holds shares in the automotive brand LYNK&CO, which focuses on young open-minded urban people through a flexible customer offering.

​Volvo Cars is a small producer, with a global market share of 1–2 percent. The largest market, China, represented some 23 per cent of the total sales volume in 2022, followed by Europe (21%), the US (18%), other markets(11%), Sweden(6%), the UK (5.5%), and Germany (6%).

Sources of VolvoCar revenues
Unit cars sold annually is descending since top Q4 2022. One way to protect revenue is selling at higher price than of year 2020.

​We can see clearly that automotive branch generates the greatest revenue in total 89% of the 2021 revenues, while used cars business covers 7%.  

​Sales per region is well diversified. This provides a protection against a sharp macroeconomic decline.

​One of the most significant and noticeable aspects that distinguish modern cars even from their 10-year-old predecessors is the number of software-controlled options. As we all know, describing the Volvo brand in one word is simply: safety. Therefore, role of software has kept providing Volvo brand to live up to its brand. This means not only quality-of-life improvements for the drivers but also that the manufacturers need to come up with new innovative solutions to compete. Latest engineered performance seen in VolvoCar is a result of the constant investment and tireless innovation of their R&D team. We know R&D section plays a significant role for modern automotive in order to succeed. The cost of R&D for VolvoCar is as follows.

​Since 2012 VolvoCar R&R expense on average was -4.9% of its revenue. This means Volvo have managed to keep R&D costs low while improving its digital technology. 

​Let’s see if  VOLCAR  is undervalued compared to its fair value, analyst forecasts and its price relative to the market? Base of PE Ratio VolvoCar is good value 11x compared to the peer average as date November 2022. However, VolvoCar is slightly expensive compare to the Global auto industry average. 

Reading the swot analysis of Volvo, we will understand what are the critical factors which are responsible for the success of this firm and factors which can be dynamic and game-changing in the future.
​
Strength of VolvoCar
VolvoCar has strong market position – they are the market leader for most of its segments. Volvo has a strong position throughout the world due to its continuous expansion and use of modern technology. Strong R&D team provides them an edge over competitors’ products, and it helps them to stay in the race and innovate. At the same time what matters for customers is safety, reliable brand – Volvo is one of the most reliable and trusted brands in the world. They have a reputation for making the world’s safest cars for several decades. Having a successful and strong market presence also what helps a company like Volvo be recognized in the industry.

Weaknesses of VolvoCar,
Weaknesses are internal factors that place the company at a disadvantage compared to its competitors. As most auto manufacturing, in 2019 Volvo to recall 460,769 cars worldwide over air bag rupture fatality. Lately in 2022 Volvo's plug-in hybrid XC60 and XC90 have been recalled to fix a problem with the engine control module, although owners won't need to visit a dealer for a fix. If problems continue to rise thus can affected the brand image of VolvoCar and can has create a bad impact on the brand name of VolvoCar going forward.

Opportunities for VolvoCar
Opportunities are external factors that the company can potentially benefit from when recognized. It is not surprising that electric cars are the future of the automation industry. After huge demand for Tesla cars and the public’s concern towards sustainability become a huge opportunity for electric vehicles. Volvo has already set a goal to end fuel vehicle with in 2030. Therefore, Volvo Cars commitment to electrification also results in the launch of Polestar, a progressive stand-alone electric performance car brand, in which Volvo Cars owns shares. Volvo Cars also holds shares in the automotive brand LYNK&CO, which focuses on young open-minded urban people through a flexible customer offering.
 

Treats to VolvoCar
Threats are external factors that a company should be aware of to hold its status in the market. Threats to Volvo – Price wars – Internal competition with competitors causes price wars. Volvo faces tough competition in all its segments which forces them to do product competition i.e., fighting for giving a better quality of product or service. Currency fluctuations – Volvo operates globally in so many countries and hence it receives many kinds of currencies. All currencies are not stable, and some are unacceptable due to fluctuations happening in their value. Volvo accepts Swedish Konner and US dollars create fluctuations in their total value.
 
Competitors of Volvo
​Following are the major competitors of VolvoCar

• BMW -X3
• Mercedes-Benz
• Land Rover – Discovery Sport
• Hyundai Santa Fe
• Tesla
• NIO
• Audi Q5
• Lexus NX

ManagementJim Rowan(57Y)
0.5-year tenure
$NA salary
VOLCAR B's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team. However, VOLCAR B's board of directors are considered experienced (7.8 years average tenure).
Mr. James Rowan, also known as Jim, is a Director of Polestar Automotive Holding UK PLC from June 2022. He serves as CEO & President at McDonald Hopkins, LLC since March 21, 2022. He serves as Director of Volvo Car AB (publ.) since May 11, 2022 and serves as its Chief Executive Officer and President.
​
He serves as Director of PCH International since August 26, 2020. He serves as Chief Executive Officer of Consumer & Healthcare Division and Director at Ember Technologies, Inc. since February 16, 2021. He serves as Senior Advisor at KKR & Co. Inc. since November 2020. He served as Lead Independent Director at Nanofilm Technologies International Limited. He served as the Chief Operating Officer of Global Manufacturing & Supply Chain at BlackBerry Limited (aka Research in Motion Limited) from July 2011 to March 2012. He served as Senior Vice President of Global Manufacturing & Supply Chain at Research In Motion Limited. He served as an Executive Vice President of Worldwide Operations for Celestica. Prior to that, he was based in Vienna, Austria where he worked for Flextronics as the Vice President of Operations for their European Region and a senior executive at Flextronics. He was also a Founder of two start-ups which were extremely successful. He serves as a Member of Executive Advisory Board at SCM World Limited. He brings global experience in the consumer and technology sectors. He led Dyson as its CEO between 2017 and 2020, during which time he accelerated the company’s e-commerce strategy and significantly grew its market share worldwide.

Weybourne Services Singapore Pte. Ltd. Dyson Appliances (Aust.) Pty Limited Dyson B2B, Inc Dyson B2B Technical Services Inc Dyson Canada Limited Dyson Direct, Inc Dyson Hong Kong Limited Dyson K.K. Dyson Manufacturing Sdn.
Bhd. Dyson New Zealand Limited Dyson Technical Services, Inc. Dyson Technology Inc Dyson, Inc. Sakti3, Inc. Dyson SAS Dyson Research and Development (Shanghai) Limited Dyson Technology (Beijing) Ltd Dyson Technology (Shanghai) Limited. He a Dictatorship in Momentum Technologies Pte Ltd PCH International Limited. He is an Advisory Board Member of Nanyang Technological University’s School of Mechanical & Aerospace Engineering.
He was Non-Executive Non-Independent Director at Nanofilm Technologies International Limited since May 14, 2021 until March 01, 2022. He works as advisor at Sydrogen Energy Pte. Ltd. (Sydrogen).

MTN is a pan-African leading mobile telecommunication operator with the strategic intent of ‘Leading digital solutions for Africa’s progress’. Inspired by their belief that everyone deserves the benefits of a modern connected life, they provide a diverse range of

• voice,
• data,
• fintech,
• digital, enterprise,
• wholesale, and
• API services to more than 272 million customers in 19 markets.

Established in South Africa at the dawn of democracy in 1994 as a leader in transformation. Since then, they have grown by investing in sophisticated communication infrastructure, developing new technologies and by harnessing the talent of their diverse people to now offer services to communities across Africa and the Middle East. MTN Group Limited is a publicly owned entity whose shares are traded on the JSE with a market capitalisation of around US$12 billion. MTN strategy is to build the largest and most valuable platform business with a clear focus on Africa.

​Below an image showing some of MTN's Group main brands and investments. South Africans are sure to recognize several the brands in the image below.

​MTN Group sales per business break down by activity as follows: mobile telecommunication is the biggest revenue contributor 73,5% as 2021, following by digital & fintech and interconnect and roaming, while sale of cell phones and accessories contribute 5,4%.

​PE Ratio vs competitors: MTN is good value based on its Price-To-Earnings Ratio (11.0x) compared to the peer average (18.5x). Industrial average PE ratio is currently at 14.5x, MTN PE ratio is well below industrial and its competitors. We can conclude that base of historical data MTN is slightly undervalued compared to its fair value.

​There is a structurally higher demand for data services and accelerating transaction values in fintech businesses. To support this, MTN Group is investing in the coverage, capacity and resilience of their networks, as well as the scaling of their platforms. They are increasing investment in the networks to R34.4 billion. MTN expect capex intensity to decelerate as the business grows, with Group capex intensity anticipated to reduce in the range of 18% to 15%. They have enhanced their medium-term guidance, raising our targets for Group service revenue growth and returns, in turn creating shared value.
781m (72%) people in SSA still not connected to mobile internet SSA mobile internet users to grow to 474m by 2025 from 303m in 2020 ~46% of Africa’s population is unbanked 95% of payments remain cash based with 90% of economies driven by small business. 

At least mid-teens growth

• South Africa: mid-single-digit growth
• Nigeria: at least 20% growth Accelerate fintech platform growth
•  >20% service revenue contribution Holdco leverage
• ≤ 1.5x, faster non-ZAR deleveraging Asset realisation
• >R25 billion Adjusted RoE
• Improvement towards 25

Ralph Mupita(50Y)
5.5 years tenure è average management tenure is only 2.1 years
R51, 310, 000 salary
Mr. Ralph Tendai Mupita, BSc (Hons)(Eng.), MBA, GMP (Harvard), serves as Non-Executive Director of MTN Nigeria Communications PLC since April 13, 2017. He served as a Non-Executive Director at Scancom Plc since June 1, 2018 until May 25, 2021. He served as an Independent Non-Executive Director of Rand Merchant Investment Holdings Limited since March 31, 2018 until November 24, 2021.

He was Group Chief Financial Officer at Mobile Telephone Networks Holdings Limited until August 31, 2020 and has been its Executive Director since April 3, 2017. He is Group President and Chief Executive Officer of Mobile Telephone Networks Holdings Limited since September 01, 2020. Mr. Mupita had been Group Chief Financial Officer of MTN Group Limited since April 3, 2017 until August 31, 2020. He has been Executive Director of MTN Group Limited since April 3, 2017 and serves as its Group President and Chief Executive Officer since September 01, 2020.

He served as the Director of Special Growth Projects for Old Mutual Life Assurance Company (South Africa) Limited. He joined Old Mutual in 2000, he was seconded to Old Mutual Zimbabwe where he worked on a strategy project that led to re-structuring several functional areas within Old Mutual Properties (Zimbabwe). On re-joining Old Mutual South Africa in July 2001, Mr. Mupita looked after the strategy & business planning functions for Individual Life as a Strategy Director. He has extensive experience in the financial services sector, having had a distinguished career at Old Mutual over.
​
He worked on engineering and construction projects in SA. A key responsibility in this role was the Vision 2002 Programme. From October 2002 to October 2003, he became responsible for customer development for the retail middle market business (Personal Finance). From October 2003 to October 2004, he was responsible for Group Direct Sales (Old Mutual's direct marketing & sales business unit) as well as retail Customer Management.

He served as Managing Director of Old Mutual Unit Trusts since October 1, 2004. He served as a Non- Executive Director of UAP Holdings Limited since June 19, 2015 until January 31, 2017. He served as a Director of Kotak Mahindra Old Mutual Life Insurance Ltd. from May 1, 2011 to March 27, 2013.
Mr. Mupita holds B. Sc. Engineering (Hons), with construction projects in South Africa and completed his MBA at the University of Cape Town in 2000. He is a graduate of Harvard Business School's GMP programme and has also attended executive programmes at London Business School and INSEAD.

Naspers is a global consumer internet group and one of the largest technology investors in the world. Naspers Limited operates in consumer internet industry worldwide. The company builds various companies that empower people and enrich communities. It holds investments in classifieds,

• Food delivery
• Payments and fintech
• Education
• Health, and ecommerce, as well as ventures, and social and internet platforms.

The company also prints, publishes, and distributes, newspapers, magazines, and books through digital platforms. Naspers Limited was founded in 1915 and is headquartered in Cape Town, South Africa.
Through Prosus the group invests and operates globally in markets with long-term growth potential, building leading consumer internet companies that empower people and enrich communities. Prosus has its primary listing on Euronext Amsterdam and a secondary listing on the JSE Limited’s stock exchange. It also has an American Depository Receipts (ADR) programmed trading on an over-the-counter basis in the United States. Naspers is the majority owner of Prosus. They are committed to investing in entrepreneurs and in technologies that improve people’s lives. From India to Brazil to South Africa to Russia – well over a billion people around the world benefit from Naspers-backed businesses. Billions more are within our reach and we’re keen to help them too. They continue to grow and address big societal needs and, in turn, create greater value over time. They operate or partner with several leading internet businesses across Africa, Central and Eastern Europe, the Americas and Asia in sectors that include online classifieds, food delivery, payments and fintech, etail, social and internet platforms, education, and health.
​

​Below an image showing some of Naspers's main brands and investments. South Africans are sure to recognize several the brands in the image below.

​PE vs competitors: Naspers is good value based on its Price-To-Earnings Ratio (3.01x) compared to the peer average (58.5x).

MultiChoice South Africa’s digital and analog platforms in South Africa compete directly with the four free-to-air television channels in South Africa (which are also carried on MultiChoice South Africa’s digital bouquet) and indirectly with the internet, all live sporting events, motion picture theatres, video rental stores, mobile telephones, lotteries, gaming, and other forms of entertainment.

The extent and nature of competition among smart card manufacturers is in large part determined by the ability to provide secure products that effectively combat piracy at competitive prices, the ability to offer superior customer service and the ability to acquire new clients, as the cost of switching for existing customers can be high. Irdeto’s main competitors are NDS Group plc and Nagravision S.A., which provide conditional access systems to operators utilizing a range of platforms.

MediaZone competitors for consumer-facing aggregated paid video service include JumpTV, Setanta, RooTV, TotalVid, PlanetVu.  On a more generalized “video content aggregation & delivery to consumers” level, competition would include traditional cable and satellite providers such as Comcast and Dish, especially those offering a Video on Demand model.

​Naspers strength

• Strong presence in around 130 countries making it one of the largest technology investors globally.
• Strong local backup brand, very large consumer network
• Leadership position in food delivery in many large geographies.

Naspers weaknessSlow performance growth in video-entertainment business
Naspers threatsCompetition from Amazon, Google

​Bob Van Dijk(49Y)
8.42 years tenure
$10 121 000 salary
Mr. Bob van Dijk served as an Independent Director at Booking Holdings Inc. since June 04, 2020, until June 09, 2022. He has been the Chief Executive Officer of Naspers Limited since April 1, 2014. Mr. van Dijk is Chief Executive Officer of Prosus N.V. since September 2019 and serves as its Executive Director since May 16, 2019.
He has experience in the technology sector and has been active in the field of E-Commerce for 11 years. Mr. van Dijk served as the Chief Executive Officer of Global Transaction E-Commerce at Naspers Limited from October 2013 to April 1, 2014, and served as its Ecommerce Chief. Mr. van Dijk served as Chief Executive Officer of Allegro Group at Naspers Ltd. since August 2013.
He served as Finance and Strategy Manager at eBay Group since July 2004. Mr. van Dijk also served in several general management positions with eBay and Schibsted. Prior to that, Mr. van Dijk was an entrepreneur in online financial products. He served as a Vice President of eBay Europe, where he was responsible for all eBay Group activities in the Netherlands as a Managing Director of eBay Netherlands.
Furthermore, he played a key role in expanding eBay’s local classifieds and online motor sales platform businesses as Vice President of Local Classifieds and Motors. He began his career as an Associate at McKinsey with a focus on mergers and acquisitions, and media. He has been an Executive Director of Naspers Limited since April 1, 2014. He serves as a Director of MultiChoice (Pty) Ltd.
He has 15 years of general management experience in online growth business across the world, spanning the online marketplaces, online classifieds and etail segments. He served as a Member of Supervisory Board at INTERSHOP Communications Atiengesellschaft from February 1, 2012 to May 31, 2013. He was Executive of Schibsted ASA. He was a founder of an online financial derivatives marketplace.
He has an MBA Hons from INSEAD and a M.Sc. in Econometrics from Erasmus University Rotterdam.

Meta mission is to give people the power to build community and bring the world closer together. All of their  products, including apps, share the vision of helping to bring the metaverse to life. Their top priority is to build useful and engaging products that enable people to connect and share through mobile devices, personal computers, virtual reality (VR) headsets, wearables, and in-home devices. They have 2.93 billion monthly active users as the first quarter of 2022. Their products include:

Facebook is a place for people to share life's moments and discuss what's happening, nurture and build relationships, discover and connect to interests, and create economic opportunity. They can do this through News Feed, Stories, Groups, Watch, Marketplace, Reels, Dating, and more.
 
Instagram brings people closer to the people and things they love. Instagram Feed, Stories, Reels, Video, Live, Shops, and messaging are places where people and creators can express themselves and push culture forward through photos, video, and private messaging, and connect with and shop from their favorite businesses.
 
Messenger is a simple yet powerful messaging application for people to connect with friends, family, groups, and businesses across platforms and devices through chat, audio and video calls, and Rooms.

WhatsApp is a simple, reliable, and secure messaging application that is used by people and businesses around the world to communicate and transact in a private way.
 
They generate substantially all of their revenue from selling advertising placements to marketers. Their ads let marketers reach people based on a variety of factors including age, gender, location, interests, and behaviors. Marketers purchase ads that can appear in multiple places including on Facebook, Instagram, and third-party applications and websites. They are also investing heavily in other consumer hardware products and several longer-term initiatives, such as
augmented reality,
artificial intelligence (AI), and
connectivity efforts, to develop technologies that we believe will help us better serve our mission over the long run.

​Risks related to META products might fail to add and retain existing users or add new users, or if their users decrease their level of engagement with their products, revenue, financial results, and business may be significantly harmed. The occurrence of security breaches, improper access to or disclosure of user data, and other cyber incidents or undesirable activity on their platform; their ability to obtain, maintain, protect, and enforce our intellectual property rights. If people do not perceive their products to be useful, reliable, and trustworthy, they may not be able to attract or retain users or otherwise maintain or increase the frequency and duration of their engagement.
 
A number of other social networking companies that achieved early popularity have since seen their active user bases or levels of engagement decline, in some cases precipitously. There is no guarantee that we will not experience a similar erosion of our active user base or engagement levels. Meta’s user engagement patterns have changed over time, and user engagement can be difficult to measure, particularly as they introduce new and different products and services.
Governments from time to time seek to censor or moderate content available on Facebook or our other products in their country, restrict access to our products from their country partially or entirely, or impose other restrictions that may affect the accessibility of  META products in their country for an extended period of time or indefinitely. For example, user access to Facebook and certain of our other products has been or is currently restricted in whole or in part in China, Iran, and North Korea. In addition, government authorities in other countries may seek to restrict user access to our products if they consider us to be in violation of their laws or a threat to public safety or for other reasons, and certain of our products have been restricted by governments in other countries from time to time. For example, in June 2020, Hong Kong adopted a National Security Law that provides authorities with the ability to obtain information, remove and block access to content, and suspend user services, and if they are found to be in violation of this law then the use of Facebook products may be restricted.

​PE vs Industry: META is good value based on its Price-To-Earnings Ratio (12.7x) compared to the US Interactive Media and Services industry average (42.7x).
PE vs Market: META is good value based on its Price-To-Earnings Ratio (12.7x) compared to the US market (15.2x).

​FACEBOOK do not intend to pay cash dividends for the foreseeable future.
 
They have never declared or paid cash dividends on their capital stock. They currently intend to retain any future earnings to finance the operation and expansion of  business and fund their share repurchase program, and they do not expect to declare or pay any cash dividends in the foreseeable future. As a result, you may only receive a return on your investment from their Class A common stock if the trading price of your shares increases.

​As of March 31, 2022, $0.4 million of loan and lease balances that were granted deferral payments by the Company were still in their deferment period. These modifications consisted solely of payment deferrals ranging from 30 days to six months. These modifications are in line
with applicable regulatory guidelines and, therefore, they are not reported as troubled debt restructurings. Other than the loan modifications that are on nonaccrual status, the Company is accruing and recognizing interest income on these modifications during the payment deferral period. In conclusion META is  has no debt, therefore coverage of interest payments is not a concern, therefore we can conclude Meta financial position is significantly healthy.

​Facebook business is highly competitive. Competition presents an ongoing threat to the success of Facebook business. As to date META is facing a significant competition in every aspect of their business, including from companies that provide tools to facilitate communications and the sharing of information, companies that enable marketers to display advertising, and companies that provide development platforms for application developers as well as with companies that provide social, media, and communication products and services that are designed to engage users on mobile devices and online.  Facebook business is rapid change, and disruptive technologies, therefore face significant competition across broad platforms that replicate capabilities they provide. For example, among other areas, Apple in messaging, Google and YouTube in advertising and video, Tencent and Snap in messaging and social media, Byte dance and Twitter in social media, and Amazon in advertising.
 
No one knows what the future will held, therefore some of Facebook current and potential competitors may have greater resources, experience, or stronger competitive positions in certain product segments, geographic regions, or user demographics than we do. For example, some of their competitors may be domiciled in different countries and subject to political, legal, and regulatory regimes that enable them to compete more effectively than Facebook. These factors may allow our competitors to respond more effectively than us to new or emerging technologies and changes in market conditions. Facebook believe that some users, particularly younger users, are aware of and actively engaging with other products and services similar to, or as a substitute for, their products and services, and Facebook believe that some users have reduced their use of and engagement with their products and services in favor of these other products and services. In the event that users increasingly engage with other products and services, Facebook may experience a decline in use and engagement in key user demographics or more broadly, in which case their business would likely be harmed.

How experienced are the management team and are they aligned to shareholders interests?
Average management tenure 5.4 years.
CEO  -  Mark  Elliot Zuckerberg (37 years young): have 17.9 years tenure, with a compensation of  US$26, 823, 061.  Mark total compensation is above average for companies of similar size in the US market( $13.3Mill)
Mr. Mark Elliot Zuckerberg founded Meta Platforms, Inc. (formerly known as Facebook, Inc.) in 2004 and its Chief Executive Officer since July 2004 and Chairman since January 2012. Mr. Zuckerberg is responsible for setting the overall direction and product strategy of Meta Platforms. He leads the design of Meta Platforms’ service and development of its core technology and infrastructure. Mr. Zuckerberg is also a Co-Founder of Breakthrough Energy LLC, which he co-founded in November 2015. He has been a Director of Meta Platforms, Inc. (formerly known as Facebook, Inc.) since July 2004. He attended Harvard University where he studied computer science.
 
OWNERSHIP STRUCTURE

• Institutions: 0.6 %
• General Public: 77 %
• Individual Insiders: 0.6%

TOP SHAREHOLDERS

Microsoft is a technology company whose mission is to empower every person and every organization on the planet to achieve more. Their platforms and tools help drive

• Small business productivity,
• Large business competitiveness, and
• Public-sector efficiency.

They also support new startups, improve educational and health outcomes, and empower human ingenuity.
They bring technology and products together into experiences and solutions that unlock value for our customers.
Furthermore, they develops, licenses, and supports software, services, devices, and solutions worldwide. As to date they are the world's leader in the design, development and marketing of operating systems and software programs for PC's and servers. The group also builds and sells computer equipment. Net sales break down by activity as follows:

• Sale of operating systems and application development tools (44.5%): primarily for servers (Azure, SQL Server, Windows Server, Visual Studio, System Center, GitHub, etc.) and (Windows);
• Development of cloud-based software applications (24.7%): programs for productivity (Microsoft 365; Word, Excel, PowerPoint, Outlook, OneNote, Publisher and Access), integrated management and customer relationship management (Dynamics 365), online file sharing and management (OneDrive), and unified and collaborative communications (Skype and Microsoft Teams);
• Sale of video gaming hardware and software (8.1%) : mainly Xbox;

• Enterprise services (4.5%);
• Sale of computers, tablets and accessories (4.5%);
• Other (13.7%).

​The United States account for 51.5% of net sales.
Since interception  1975, they develop and support software, services, devices, and solutions that deliver new value for customers and help people and businesses realize their full potential.
They offer an array of services, including cloud-based solutions that provide customers with software, services, platforms, and content, and we provide solution support and consulting services. We also deliver relevant online advertising to a global audience.
 
Microsoft's products include operating systems, cross-device productivity applications, server applications, business solution applications, desktop and server management tools, software development tools, and video games. We also design and sell devices, including PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories

​Their productivity and Business Processes segment consists of products and services in their portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. This segment primarily comprises:

• Office Commercial (Office 365 subscriptions, the Office 365 portion of Microsoft 365 Commercial subscriptions, and Office licensed on-premises), comprising Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Skype for Business.
• Office Consumer, including Microsoft 365 Consumer subscriptions and Office licensed on-premises, and Office Consumer Services, including Skype, Outlook.com, and OneDrive.
• LinkedIn, including Talent Solutions, Marketing Solutions, Premium Subscriptions, Sales Solutions, and Learning Solutions.
• Dynamics business solutions, including Dynamics 365, comprising a set of intelligent, cloud-based applications across ERP, CRM, Customer Insights, Power Apps, and Power Automate; and on-premises ERP and CRM applications.

Dynamics provides cloud-based and on-premises business solutions for financial management, enterprise resource planning (“ERP”), customer relationship management (“CRM”), supply chain management, and other application development platforms for small and medium businesses, large organizations, and divisions of global enterprises. Dynamics revenue is driven by the number of users licensed and applications consumed, expansion of average revenue per user, and the continued shift to Dynamics 365, a unified set of cloud-based intelligent business applications, including Power Apps and Power Automate.

Sales per business

​PE vs Industry: MSFT is good value based on its Price-To-Earnings Ratio (26.41x)
​compared to the US Software industry average (38.6x).
 PE vs Market: MSFT is poor value based on its Price-To-Earnings Ratio (26.41x) compared to the US market (15.2x).

This valuation is based on level 1-3 investments methodology, therefore these controls include brief summary model validation, review of key model inputs, analysis of period-over-period fluctuations, and independent recalculation of prices where appropriate. Cash from operations increased $16.1 billion to $76.7 billion for fiscal year 2021, mainly due to an increase in cash received from customers, offset in part by an increase in cash paid to suppliers and employees. Cash used in financing increased $2.5 billion to $48.5 billion for fiscal year 2021, mainly due to a $4.4 billion increase in common stock repurchases and a $1.4 billion increase in dividends paid, offset in part by a $1.8 billion decrease in repayments of debt and a $1.7 billion decrease in cash premium paid on debt exchange. Cash used in investing increased $15.4 billion to $27.6 billion for fiscal year 2021, mainly due to a $6.4 billion increase in cash used for acquisitions of companies, net of cash acquired, and purchases of intangible and other assets, a $5.2 billion increase in additions to property and equipment, and a $4.1 billion decrease in cash from net investment purchases, sales, and maturities.

​During fiscal years 2021 and 2020, they repurchased 101 million shares and 126 million shares of their common stock for $23.0 billion and $19.7 billion, respectively, through our share repurchase programs. All repurchases were made using cash resources. 

​Microsoft returned $10.4 billion to shareholders in the form of share repurchases and dividends in the fourth quarter of fiscal year 2021. Dividends paid out ratio 24.5 % of its earnings over the trailing twelve months.
Microsoft's last dividend payment date was on 2022-06-09 when Microsoft shareholders who owned MSFT shares before 2022-05-18 received a dividend payment of $0.6200 per share. Microsoft's next dividend payment date has not been announced yet.

Microsoft’s has more cash than its total debt, its debt is well covered by operating cash flow 174%. As to date June 2022 the world economy is embossed by the uncertainty of Russia/Ukraine war, rapidly inflation rises, world central banks are  hiking  interest rate to cool prices. In this type of market dynamics blue chip companies out to perform well then small cap that carries high debt ratio. Microsoft’s interest payments on its debt are well covered by EBIT 1260%x coverage,  therefore we can conclude Microsoft financial position is healthy

​Microsoft’s competitors’ range in size from diversified global companies with significant research and development resources to small, specialized firms whose narrower product lines may let them be more effective in deploying technical, marketing, and financial resources. Barriers to entry in many of Microsoft businesses are low and many of the areas in which they compete evolve rapidly with changing and disruptive technologies, shifting user needs, and frequent introductions of new products and services. Their ability to remain competitive depends on their success in making innovative products, devices, and services that appeal to businesses and consumers.
Competitors to Office include software and global application vendors, such as Apple, Cisco Systems, Facebook, Google, IBM, Okta, Proofpoint, Slack, Symantec, Zoom, and numerous web-based and mobile application competitors as well as local application developers. Apple distributes versions of its pre-installed application software, such as email and calendar products, through its PCs, tablets, and phones. Cisco Systems is using its position in enterprise communications equipment to grow its unified communications business. Google provides a hosted messaging and productivity suite. Slack provides teamwork and collaboration software. Zoom offers videoconferencing and cloud phone solutions. Skype for Business and Skype also compete with a variety of instant messaging, voice, and video communication providers, ranging from start-ups to established enterprises. Okta, Proofpoint, and Symantec provide security solutions across email security, information protection, identity, and governance. Web-based offerings competing with individual applications have also positioned themselves as alternatives to our products and services. We compete by providing powerful, flexible, secure, integrated industry-specific, and easy-to-use productivity and collaboration tools and services that create comprehensive solutions and work well with technologies our customers already have both on-premises or in the cloud.
 
LinkedIn faces competition from online professional networks, recruiting companies, talent management companies, and larger companies that are focusing on talent management and human resource services; job boards; traditional recruiting firms; and companies that provide learning and development products and services. Marketing Solutions competes with online and offline outlets that generate revenue from advertisers and marketers, and Sales Solutions competes with online and offline outlets for companies with lead generation and customer intelligence and insights.
Dynamics competes with cloud-based and on-premises business solution providers such as Oracle, Salesforce.com, and SAP.
Azure faces diverse competition from companies such as Amazon, Google, IBM, Oracle, VMware, and open source offerings. Our Enterprise Mobility + Security offerings also compete with products from a range of competitors including identity vendors, security solution vendors, and numerous other security point solution vendors. Azure’s competitive advantage includes enabling a hybrid cloud, allowing deployment of existing datacenters with our public cloud into a single, cohesive infrastructure, and the ability to run at a scale that meets the needs of businesses of all sizes and complexities. We believe our cloud’s global scale, coupled with our broad portfolio of identity and security solutions, allows us to effectively solve complex cybersecurity challenges for our customers and differentiates us from the competition.
 
Windows faces competition from various software products and from alternative platforms and devices, mainly from Apple and Google. We believe Windows competes effectively by giving customers choice, value, flexibility, security, an easy-to-use interface, and compatibility with a broad range of hardware and software applications, including those that enable productivity.

How experienced are the management team and are they aligned to shareholders interests?
Average management tenure 6.8 years.
CEO – Satya Nadella (54 years young): have 8.2 years tenure, with a compensation of $49 858 280. Satya’s total compensation is above average for companies of similar size in the US market( $13.3Mill)
Mr. Satya Nadella is Chief Executive Officer and Director of Microsoft Corporation since February 2014 and has been its Chairman since June 2021. Before being named CEO in February 2014, he held leadership roles in both enterprise and consumer businesses across the Company. He has held various leadership positions at Microsoft since joining Microsoft in 1992, including Executive Vice President of Cloud and Enterprise from July 2013 to February 2014; President of Server and Tools from 2011 to 2013; Senior Vice President of Online Services Division from 2009 to 2011; and Senior Vice President of Search, Portal, and Advertising from 2008 to 2009.

Mr. Nadella’s roles also included Vice President of the Microsoft Business Division. Before joining Microsoft, he was a Member of the Technology Staff at Sun Microsystems. He has been a Director of Bravo Solution US, Inc.; and Starbucks Corp since March 22, 2017. He earned a bachelor’s degree in electrical engineering from Mangalore University, a master’s degree in computer science from the University of Wisconsin – Milwaukee and a master’s degree in business administration from the University of Chicago. ​He serves as a Trustee of Fred Hutchinson Cancer Research Center. Mr. Nadella served as a Director of Riverbed Technology, Inc

OWNERSHIP STRUCTURE

• Institutions: 72 %
• General Public: 27 %
• Individual Insiders: 0.08%