Situation
A US-based IB firm requested for a detailed research report on a public listed US-based telecom company to get an actionable investment ideas followed by
- Industry research: Creating a sector compendiums for identifying macro factors that affect the investment potential of the telecom sector.
- Company research: Performing deep-dive research tasks on company such as fundamental analysis and competitive benchmarking.
JMI Implementation
- Provided high level overview of sector trends, outlook and its key drivers like 5G implementation and mobile phone penetration.
- Conducted detailed fundamental research on company financial report to get insights on revenue growth, cash flows and other KPIs. Also, identified the catalyst and key risk factors with its mitigate for business.
- JMI team identified that the company will grow at c.6% CAGR in next 5 year with its ARPU increasing from 42 USD to 48 USD.
- Provided an insight on competitive landscape and constructed a benchmarking model across key metrics like market share, ARPU, and customer base etc.
Value Delivered
- JMI delivered an actionable insights on its report comprises of sectoral research, company research and competitive landscape.
- JMI team also identified that the stock was trading at attractive valuation of 5.1x EV/EBITDA and 6.8x P/E.