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SBUX Logo
Can Fast Paced Growth In China Threaten Starbucks’ Premium Status?
  • By , 5/31/16
  • tags: SBUX MCD DNKN
  • Recently Starbucks Corporation ‘s (NASDAQ:SBUX)   announced that it will bring its first International Starbucks Roastery and Reserve Tasting Room to China in 2017. The  30,000 square feet Roastery, which is to provide Chinese consumers with an immersive and instructive experience, will open in late 2017 in Shanghai. Inspired by its first such location that debuted in Seattle in 2014, the Roastery will allow Chinese consumers to better understand the craft of roasting and brewing a range of Starbucks coffees.  The company currently has 2,100 stores in China spread across 102 cities and is expanding rapidly in the region. It plans to open 500 new stores in the region in 2016.   Starbucks views China as its next growth opportunity and is looking at ways to exploit this potential to the fullest.  The company wants to take advantage of the growing urban middle class in the region, with its increasing disposable income.  Demand for luxury foreign products, including coffee, is thus set to increase.  This planned expansion will ensure that China is the next growth engine for the Starbucks. See our full analysis for Starbucks Corportion China’s Urban Middle Class Can Increase To The Size Of The Total U.S. Population China’s urban middle class is growing rapidly.  According to a report by McKinsey by 2022, 75% of China’s urban consumers will earn between $9,000 and $ 35,000 annually.  This will be up dramatically from the 4% level in the year 2000. The report also suggests that out of the 357 million estimated urban population in China for 2022, nearly 65% of this population will fall in the “upper middle class” and “affluent “category. This segment with higher disposable income is the primary market for Starbucks in China and based on McKinsey data this could be around 240 million consumers by 2022. Starbucks believes that, in the long term, China has the potential to become its biggest market, surpassing the U.S.   The figures in the McKinsey report indicate that this is a possibility. Starbucks currently operates around 12,500 stores in the U.S., catering to its population of around 320 million. This roughly translates into one Starbucks stores for every 25,000 people in the U.S.  In comparison, its target to have around 3,400 stores in China by 2019 does not sound very aggressive, given that its market size in China will be around 240 million by 2022. Starbucks long term target to have 10,000 outlets in China will similarly translate into one store for about 25,000 urban Chinese consumers with the purchasing power to be a Starbucks loyalcustomer. However, with a total population of more than 1 billion people, Starbucks’ market size in the region has a huge growth potential. Apart from promoting its premium beverages, Starbucks is also looking to offer value for money deals to attract consumers in the U.S. It can adopt a similar strategy in China in the long term. The company recently launched a limited period all day “Power Lunch” for $8 in its company operated stores in the U.S. and Canada, to attract consumers to its food items while they pick up their beverages. Given its vast presence in the U.S., the company is working on strategies to increase revenues from food items.  It can adapt a similar strategy in China, once it has a widespread presence. We believe Starbucks’ expansion strategy in China is in line with the increasing urban population in the region. While this rapid expansion makes its stores more accessible to the Chinese consumers, its premium coffee and customer engagement will ensure that the company retains its premium status in the region.   More Trefis Research
    MSFT Logo
    Will Microsoft's Shuttering Of Phone Hardware Have Any Impact on The Valuation Of The Company?
  • By , 5/31/16
  • tags: MSFT
  • Microsoft  (NASDAQ:MSFT) announced that it will further write-down $950 million for the smartphone unit and shed up to 1,850 jobs. In 2015, the company had written down impairment charges of $7.5 billion related to Phone Hardware business. As a result of this writedown in 2015, we revised our forecast for phone unit downward. The phone hardware division contributed only 1.2% to Microsoft’s enterprise value (EV). The table below indicates that the loss of sale of revenues from smartphone due to shutdown will have minimum impact on Microsoft’s valuation. On the other hand, the cost saving from cutting employees might offset this loss. Have more questions about Microsoft? See the links below: What’s Microsoft’s Revenue And Earnings Breakdown? By What Percentage Did Microsoft’s Revenue And EBITDA Increase In The Last Five Years? How Has Microsoft’s Revenue Composition Changed Over The Last 5 Years? By What Percentage Can Microsoft’s Revenues And EBITDA Grow In The Next 3 Years? Notes: 1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com 2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to  our complete analysis for Microsoft Interactive Institutional Research (Powered by Trefis): Global Large Cap  |  U.S. Mid & Small Cap  |  European Large & Mid Cap  | More Trefis Research  
    COP Logo
    How Have Plummeting Crude Oil Prices Impacted Merger And Acquisitions In The US Oil And Gas Industry?
  • By , 5/31/16
  • tags: COP APC EOG CHK
  • The commodity down cycle that began in July 2014 is believed to have disrupted the valuation of all the companies in the oil and gas value chain. As a result, the merger and acquisitions (M&A) in the industry is expected to have gone up, according to popular market belief. While we agree with the fact that the weak price environment has deteriorated the value of many oil and gas companies, we believe (based on the data in the table below) that this may not necessarily warrant the consolidation of the industry. In the table below, we present crude oil price data and the number of M&A deals that have taken place for the last 5-6 quarters. On a closer look, one can deduce that the change in M&A activity in the oil and gas industry is positively correlated to the change in commodity prices, particularly the crude oil price, and moves in the same direction as the movement in crude oil prices. Based on the data, we calculate that the change in M&A transactions and the change in crude oil price have a positive correlation of around 80%. By this we mean that if crude oil prices drop by say 1%, the M&A activity in the oil and gas sector is likely to go down by 0.8%. However, one cannot rule out the possibility of company specific factors and other macro factors which could boost the M&A deals even in a weak price environment. Have more questions about  ConocoPhillips  (NYSE:COP)? See the links below: Why Is China A Key Factor In Determining Crude Oil Prices? How Are Crude Oil Prices And Global Oil Rig Count Correlated? How Are Natural Gas Prices And Global Gas Rig Count Correlated? How Will ConocoPhillips’ Revenue And EBITDA Grow Over The Next Five Years? How Has ConocoPhillips’ Revenue And EBITDA Changed Over The Last Five Years? Weak Commodity Prices Drive Down ConocoPhillips’ 1Q’16 Earnings; Company Cut Capex Guidance To $5.7 Billion ConocoPhillips’ 1Q’16 Results To Remain Weak As The Commodity Downturn Deepens How Has ConocoPhillips’ Production Mix And Price Realizations Changed Over The Last 6 Years? How Will ConocoPhillips’ Revenue Move If Crude Oil Prices Rebound To $100 Per Barrel By 2018? How Will ConocoPhillips’ Revenue Move If Crude Oil Price Average At $50 Per Barrel In 2018? What Is ConocoPhillips’ Fundamental Value Based On 2016 Estimated Numbers? What Is ConocoPhillips’ Revenue And EBITDA Breakdown? How Has ConocoPhillips’ Revenue And EBITDA Composition Changed Over The Last 6 Years? Notes: 1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com 2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to  our complete analysis for ConocoPhillips View Interactive Institutional Research (Powered by Trefis): Global Large Cap  |  U.S. Mid & Small Cap  |  European Large & Mid Cap More Trefis Research
    ORCL Logo
    How Is Oracle's Revenue and Gross Profit Composition Expected To Change In The Future?
  • By , 5/31/16
  • tags: ORCL
  • The change in Oracle’s revenue and gross profit composition is a clear indicator of its transition from a legacy on-premise software licenses vendor to a major cloud-computing services provider in the coming years. Have more questions on Oracle  (NYSE:ORCL)? See the links below: By How Much Is Oracle’s Revenue & Gross Profit Expected to Change In The Next 5 Years? Notes: Get Trefis Technology
    HPE Logo
    What’s Hewlett Packard Enterprise’s Revenue And Earnings Breakdown?
  • By , 5/31/16
  • tags: HPE-BY-COMPANY
  • Have more Questions? Check Out some that we have answered: What’s Hewlett Packard Enterprise’s Fundamental Value Based On Expected 2015 Results? By What Percentage Did Hewlett Packard Enterprise’s Revenues And EBITDA Decrease In The Last Five Years? How Has Hewlett Packard Enterprise’s Revenue Composition Changed Over The Last 5 Years? By What Percentage Can Hewlett Packard Enterprise’s Revenues And EBITDA Decline In The Next 3 Years? Notes: View Interactive Institutional Research (Powered by Trefis): Global Large Cap  |  U.S. Mid & Small Cap  |  European Large & Mid Cap More Trefis Research
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    What Is Baker Hughes' Fundamental Value Based On Estimated 2016 Value?
  • By , 5/31/16
  • tags: BHI HAL SLB RIG
  • Based on the estimated EV/EBITDA for 2016, we estimate Baker Hughes’ fundamental value to be around $20.6 billion, which is close to its current market value. Have more questions about  Baker Hughes  (NYSE:BHI)? See the links below: How Will Baker Hughes’ Revenue And EBITDA Grow Over The Next Five Years? Baker Hughes 1Q’16 Earnings Continue To Slide As Commodity Prices Remain Depressed How Has Baker Hughes’ Revenue And EBITDA Changed Over The Last Five Years? How Has Baker Hughes’ Revenue And EBITDA Composition Changed Over The Last Five Years? What Is Baker Hughes’ Revenue And EBITDA Breakdown? 2015 Earnings Review: A Tough Year For Baker Hughes Due To Weak Drilling Demand HAL-BHI Merger: Is No Action Better Than A Rejection? Notes: 1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com 2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to  our complete analysis for Baker Hughes View Interactive Institutional Research (Powered by Trefis): Global Large Cap  |  U.S. Mid & Small Cap  |  European Large & Mid Cap More Trefis Research
    EL Logo
    Here’s How Estee Lauder Plans To Grow In China
  • By , 5/31/16
  • tags: EL REV LRLCY
  • In Q3 2016, Estee Lauder (NYSE:EL) registered an 8% growth in retail sales in China, lower than its all the time high of 20%, but still strong according to the company. The growth in China was primarily due to a 70% growth in e- and mobile commerce sales and 10% of the company’s business in China is now online. Estee Lauder now plans to diversify its brand portfolio in the region along with a geographically diversification by penetrating into more cities in China. It also plans to increase the number of freestanding stores, particularly in cities where there are no alternative distribution solutions such as departmental stores. While the Asia Pacific region (including China) accounts for less than 20% of the company’s net sales, it holds strong potential. Most of the company’s brands expect Estee Lauder registered   double digit growth in China for Q3 2016 .  We believe that its investment in e-commerce, its diversification and increasing focus on distribution channels will drive revenues for the company from this region in future. See Our Full Analysis for Estée Lauder Focus On E-Commerce Initiatives Estee Lauder reported that 70% of its growth in China for Q3 2016 came from online sales which now account for 10% of total sales in the region, slightly lower  than the 12% figure for the U.S.  The company plans to explore the omni channel opportunity in the region, where its freestanding stores will be connected to the online brand and be more efficient.  The company also has a store in Alibaba’s Tmall which aims to bring luxury brands to Chinese consumers. Mainland China’s overall luxury market is estimated at $ 17.2 billion .  According to a report by KPMG, 50% of China’s domestic luxury consumption will be generated online by 2020 . Estee Lauder’s investment in e-commerce initiatives in China is aimed at tapping this market and the company is already witnessing results. Diversification – Portfolio and Geographic Estee Lauder is looking to spread its geographical reach in China by expanding into more cities through a distribution channel of free standing stores. This model will work well in smaller Chinese cities where there are no departmental stores, but consumers are keen to buy the company’s products. Currently it operates free standing stores of its M.A.C and Jo Malone brands in the region, but expects to add other brands in future. The company believes that over time its speciality channel will also develop in China. Most of its brands, with the exception of Estee Lauder, registered double digit growth in the region for Q3 2016. The company can improve the its visibility in the region by broadening its distribution channel, increasing availability in stores and fostering e-commerce initiatives. While Estee Lauder’s sales in China are witnessing growth currently, the company is focused on the region and plans to invest on online and distribution initiatives to generate additional sales. As the Chinese economy shifts towards consumption with an increasing demand for foreign luxury products, Estee Lauder has strong growth prospects in the region. View Interactive Institutional Research (Powered by Trefis): Global Large Cap |  U.S. Mid & Small Cap |  European Large & Mid Cap
    FCX Logo
    How Would The Sale Of Freeport's African Mines Impact Its Copper Mining Operations?
  • By , 5/31/16
  • tags: FCX ABX NEM VALE RIO
  • Freeport-McMoRan recently announced an agreement for the sale of its interest in TF Holdings, which represents the company’s ownership interest in its African copper mines. The deal is expected to close in Q4 2016. Though the sale of the company’s interest in its African mining operations would lower its copper mining shipments and revenue by around 11% in 2017, the EBITDA margin for its copper mining operations would remain largely unchanged. Have more questions about Freeport-McMoRan? See the links below. What Is Freeport-McMoRan’s Fundamental Value Based On 2015 Results? What Is Freeport-McMoRan’s Revenue And EBITDA Breakdown? How Has Freeport-McMoRan’s Revenue Composition Changed Over The Last 5 Years? By What Percentage Did Freeport-McMoRan’s Revenue & EBITDA Decline Over The Last 5 Years? By What Percentage Can Freeport-McMoRan’s Revenue & EBITDA Change Over The Next 3 Years? How Will Freeport-McMoRan’s Revenue Composition Change by 2020? Why Have Copper Prices Declined Over The Past Year? Why Is China Important For The Global Copper Industry ? Notes:   See More at Trefis | View Interactive Institutional Research (Powered by Trefis) Get Trefis Technology        
    HMC Logo
    What Percentage of Honda's Stock Price Can Be Attributed To Growth?
  • By , 5/31/16
  • tags: HMC F GM TM
  • In this analysis, we quantify the percentage of Honda ‘s (NASDAQ:HMC) stock that can be attributed to growth. We know that a stock’s valuation can be highly influenced by future expectations of earnings growth. However, in theory, if a company sees no growth opportunities it should distribute all its earnings as dividends to its shareholders. The only capital expenditure required in such a case will be equal to the amount required to replace or maintain existing assets. Mathematically, (capital expenditure + change in net working capital + change in net operating assets) = (depreciation and amortization). We assume that this amount of capital expenditure will be sufficient for the company to retain its market share and keep margins constant. In this case, if the company pays all earnings as dividends for the rest of the period, we can calculate  Present Value of Growth Opportunity (PVGO)  of a stock from the formula given below: Have more questions about auto companies? Click on the links below: How Do Automotive Luxury Brands Compare In Their Performance In China? How Does GM’s performance vary across geographies? How Do Auto Luxury Brands Compare In The US? What Is Driving Changes In Ford’s Annual Unit Sales? How Much Money Does Ford Make Per Car Sold? How Much Has GM Been Investing In Growth Opportunities? How Ford’s Unit Pricing Differs Across Geographies? How Much Has Ford Been Investing In Growth Opportunities Ford’s Overwhelming Dependence On North America How Much Profit Does Ford Make Per Unit Sold In Each Geography? How Different China Growth Projections Impact Ford’s Bottomline How Ford’s Poor Russia Performance Is Obscuring Gains Made In Rest of Europe How Careful Targeting of F-Series Sales Helped Ford Boost Its Profits How Honda’s Automotive Business Is Faring In Japan The Most Significant Trends For Honda Motor Company Honda’s Brand Image Is Changing In The U.S. How Honda’s Automotive Performance Differs Across Geographies How Much Has Honda Been Investing In Growth Opportunities How Differing Japan Growth Projections Impact Honda Motor Company What’s Driving Toyota’s Unit Sales Growth In The U.S. What’s Driving Toyota’s Truck Sales In The U.S. Why Highlander Is The Most Important Vehicle For Toyota Right Now How Differing Japan Projections Impact Toyota Motor Notes: 1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com 2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to  our complete analysis for Honda Motor See More at Trefis  |  View Interactive Institutional Research  (Powered by Trefis) Get Trefis Technology
    HPE Logo
    What’s Hewlett Packard Enterprise’s Fundamental Value Based On Expected 2015 Results?
  • By , 5/31/16
  • tags: HPE-BY-COMPANY
  •   Have more Questions? Check Out some that we have answered: What’s Hewlett Packard Enterprise’s Revenue And Earnings Breakdown? By What Percentage Did Hewlett Packard Enterprise’s Revenues And EBITDA Decrease In The Last Five Years? How Has Hewlett Packard Enterprise’s Revenue Composition Changed Over The Last 5 Years? By What Percentage Can Hewlett Packard Enterprise’s Revenues And EBITDA Decline In The Next 3 Years? Notes: View Interactive Institutional Research (Powered by Trefis): Global Large Cap  |  U.S. Mid & Small Cap  |  European Large & Mid Cap More Trefis Research
    SIRI Logo
    What Can Push Sirius XM's Stock Down 10% In The Next Couple Of Years?
  • By , 5/31/16
  • tags: SIRI
  • If Sirius XM’s revenue share and royalties increase at a CAGR of 7% between 2016-2022, as opposed to our current forecast of 5%, there can be about 5% downside to our price estimate for the company This can occur because the music industry is constantly soliciting better pay rates from streaming services Have more questions about Sirius XM? See the links below: What’s Sirius XM’s Revenue & Earnings Breakdown In Terms Of Revenue Sources? What’s Sirius XM Fundamental Value Based On Expected 2016 Results? How Has Sirius XM’s Revenue Composition Changed In The Last Five Years? By What Percentage Can Sirius XM’s Revenues Grow Over The Next Three Years? By How Much Can Sirius XM’s Subscription Gross Margins Expand By 2020? How Much Revenues Can New Sirius XM Subscribers Add By 2020? Notes: Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap | More Trefis Research
    COH Logo
    What Has Resulted In A Decline In North American Net Sales And A Rise in International Sales For Coach So Far In FY 2016?
  • By , 5/31/16
  • tags: COH KORS RL LULU
  •     Have more questions on Coach? See the links below: Why Are We Bullish On Coach? Coach’s Strong Presence In China To Help The Company In The Future How Did the Different Segments Of Coach Perform In Q3 2016? How Has The Transformation Plan Affected Coach’s North American Retail Store Count? Coach Q3 2016 Earnings And Revenue Beats Expectations What To Expect From Coach In Q3 FY 2016? Is Coach’s Transformation Plan Working? What Is The Breakdown Of The Charges Associated With Coach’s Transformation Plan? What is Coach’s Revenue And EBITDA Breakdown? Coach: Year 2015 In Review How Has Coach’s Revenue And EBITDA Composition Changed In The Last 3 Years? Is The Men’s Segment Becoming Big Business For Coach? By What Percentage Did Coach’s Revenue & EBITDA Decline In The Last 3 Years? How Will Coach’s Revenue And EBITDA Change In The Next 3 Years? What Is Coach’s Fundamental Value Based On Expected 2016 Results? Notes:
    F Logo
    Why Sustaining F-150 Growth Momentum Is Extremely Vital For Ford
  • By , 5/31/16
  • tags: F GM TM HMC
  • In recent years, sales of SUVs, Crossovers and Trucks have experienced a boom in the U.S. Ford (NASDAQ:F) has been helped by this trend, leading to record profits in 2015. Ford’s F-series trucks, particularly the F-150, has been the highest selling vehicle in the U.S. for the last 34 years consecutively. This shows that the truck has an extremely loyal consumer base, basically a captive market for the company. Last year, the company launched a new 2016 version for the truck with a body that is made from aluminum instead of steel. Aluminum is lighter than steel and results in trucks with better fuel efficiency and handling. As a result, Ford’s average truck price grew by 3.4% in 2015. We forecast Ford’s average truck price in North America will grow by 0.3% for the rest of our forecast period. If Ford can keep up the growth rate of 2015 for the rest of our forecast period, our target price for Ford could increase by close to 20%. Instead, if the truck price declines by 2% for the rest of our forecast period, the target price would decline by 11%. Have more questions about auto companies? Click on the links below: How Do Automotive Luxury Brands Compare In Their Performance In China? How Does GM’s performance vary across geographies? How Do Auto Luxury Brands Compare In The US? What Is Driving Changes In Ford’s Annual Unit Sales? How Much Money Does Ford Make Per Car Sold? How Much Has GM Been Investing In Growth Opportunities? How Ford’s Unit Pricing Differs Across Geographies? How Much Has Ford Been Investing In Growth Opportunities Ford’s Overwhelming Dependence On North America How Much Profit Does Ford Make Per Unit Sold In Each Geography? How Different China Growth Projections Impact Ford’s Bottomline How Ford’s Poor Russia Performance Is Obscuring Gains Made In Rest of Europe How Careful Targeting of F-Series Sales Helped Ford Boost Its Profits How Honda’s Automotive Business Is Faring In Japan The Most Significant Trends For Honda Motor Company Honda’s Brand Image Is Changing In The U.S. How Honda’s Automotive Performance Differs Across Geographies How Much Has Honda Been Investing In Growth Opportunities How Differing Japan Growth Projections Impact Honda Motor Company What’s Driving Toyota’s Unit Sales Growth In The U.S. What’s Driving Toyota’s Truck Sales In The U.S. Why Highlander Is The Most Important Vehicle For Toyota Right Now How Differing Japan Projections Impact Toyota Motor Notes: 1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com 2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to  our complete analysis for Ford Motor See More at Trefis  |  View Interactive Institutional Research  (Powered by Trefis) Get Trefis Technology
    INTC Logo
    Intel's Push In Autonomous Cars To Expand Its IoT Opportunities
  • By , 5/31/16
  • tags: INTC AMD NVDA QCOM
  • Learning from its short-shortsightedness in the smartphone market (where it lost out due to its late entry), Intel  (NASDAQ:INTC) is determined to be one of the early entrants in Internet-of-Things (IoT), which is touted be the next growth driver in the semiconductor industry. Emerging markets like automotive and robotics are providing a big boost to IoT, and acquisitions and partnerships signed by Intel in the recent past can help give the company a stronger footing in the market. Two recent acquisitions made by Intel are Yogitech in April and Itseez last week. Both the acquisitions take Intel one step deeper in the automotive market, which is fast moving towards smart, connected cars. Sizing Up The Automotive Opportunity >> Morgan Stanley estimates that self-driving vehicles could deliver $507 billion in annual productivity gains. >> Strategy Analytics estimates that the Advanced Driver Assistance Systems (ADAS) market will increase to $23.6 billion by 2022, compared to approximately $15.0 billion at present >> 10 million self-driving cars are expected to hit the market by 2020, a CAGR of 134% from 2015 to 2020. How The Recent Acquisitions Expand Intel’s Current Automotive Offering Itseez  possesses expertise in Computer Vision (CV) algorithms and implementations for embedded and specialized hardware. The company contributes software tuning and integration in many market-leading products, from cars to security systems and more. Intel intends to make Itseez a key ingredient for Intel’s IoT roadmap, and will help its customers create innovative deep-learning-based CV applications like autonomous driving, digital security and surveillance, and industrial inspection. ( Read Press Release ) Yogitech is an Italian semiconductor designer specializing in adding safety functions to chips used in robots, self-driving cars and other autonomous devices. Intel plans to put Yogitech’s technology to work in its chips for advanced driver assistance systems, robotics, and autonomous machines in market segments that require functional safety and high performance. ( Read Press Release ) Why Intel Is At The Forefront Of IoT   To establish a leadership position in IoT silicon advanced logic, Intel has: >> Made numerous acquisitions (Basic Science, Recon Instruments, Vuzix, Yogitech, Itseez, Arynga, etc.) to significantly expand its IoT portfolio; >>  Introduced a new generation low-power microprocessors, e.g. Curie; >> Created a reference platform for easy & quick implementation of IoT solutions; and, >> Established partnerships with different fashion, fitness and lifestyle brands.  These include: Daqri Smart Helmet and Fossil; TAG Heuer & Michael Kors for smart watches; Opening Ceremony, TAG Heuer & Google to create a Swiss smartwatch; and, Luxottica to manufacture Smart Sun Glasses. IoT accounts for less than 5% of Intel’s revenue at present, though we forecast the revenue contribution will almost double over the next 5 years.   See our complete analysis for Intel See More at Trefis | View Interactive Institutional Research (Powered by Trefis) Get Trefis Technology
    BHI Logo
    How Will Baker Hughes' Revenue And EBITDA Grow Over The Next Five Years?
  • By , 5/31/16
  • tags: BHI HAL SLB RIG
  • The slump in commodity prices that began in the latter half of 2014 has hit Baker Hughes’ (NYSE:BHI) revenue as well as profitability severely. The oilfield contractor’s revenue in 2015 dropped more than 35% compared to 2014, while its EBITDA plunged almost 70% within a year. While we forecast the commodity prices to remain weak in the short term, we expect them to recover back to their historic levels in the long term. Based on our estimates, we forecast crude oil prices to recover to $80 per barrel by 2020. Accordingly, we anticipate Baker Hughes’ revenue to grow by 15% to $18 billion in 2020 and its EBITDA to increase by 84% to $3.7 billion during the same period. Have more questions about  Baker Hughes  (NYSE:BHI)? See the links below: What Is Baker Hughes’ Fundamental Value Based On Estimated 2016 Value? How Will Baker Hughes’ Revenue And EBITDA Grow Over The Next Five Years? Baker Hughes 1Q’16 Earnings Continue To Slide As Commodity Prices Remain Depressed How Has Baker Hughes’ Revenue And EBITDA Changed Over The Last Five Years? How Has Baker Hughes’ Revenue And EBITDA Composition Changed Over The Last Five Years? What Is Baker Hughes’ Revenue And EBITDA Breakdown? 2015 Earnings Review: A Tough Year For Baker Hughes Due To Weak Drilling Demand HAL-BHI Merger: Is No Action Better Than A Rejection? Notes: 1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com 2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to  our complete analysis for Baker Hughes View Interactive Institutional Research (Powered by Trefis): Global Large Cap  |  U.S. Mid & Small Cap  |  European Large & Mid Cap More Trefis Research
    HPE Logo
    By What Percentage Did Hewlett Packard Enterprise's Revenues And EBITDA Decrease In The Last Five Years?
  • By , 5/31/16
  • tags: HPE-BY-COMPANY
  • Hewlett Packard Enterprise’s (NYSE:HPE) revenues have declined by close to 14%, while EBITDA has declined by over 15%. The table below illustrates the divisions that have contracted the most: Have more Questions? Check Out some that we have answered: What’s Hewlett Packard Enterprise’s Revenue And Earnings Breakdown? What’s Hewlett Packard Enterprise’s Fundamental Value Based On Expected 2015 Results? How Has Hewlett Packard Enterprise’s Revenue Composition Changed Over The Last 5 Years? By What Percentage Can Hewlett Packard Enterprise’s Revenues And EBITDA Decline In The Next 3 Years?   Notes: View Interactive Institutional Research (Powered by Trefis): Global Large Cap  |  U.S. Mid & Small Cap  |  European Large & Mid Cap More Trefis Research  
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    What Will Bank of America's 2016 Revenues and Profits Look Like By Division?
  • By , 5/31/16
  • tags: BAC C JPM WFC USB
  • Bank of America has a well-balanced business model, with roughly equal revenues from its five largest operating divisions. Operating margins of around 45% make the card and commercial banking divisions the largest drivers of the bank’s profits, while the mortgage division continues to incur losses due to the poor quality of legacy assets (largely pertaining to the Countrywide acquisition). View Interactive Institutional Research (Powered by Trefis): Global Large Cap |  U.S. Mid & Small Cap |  European Large & Mid Cap More Trefis Research
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    What Is Diageo's Position in India's Alcoholic Beverage Market?
  • By , 5/31/16
  • tags: DIAGEO DEO BUD SBMRY
  • Diageo currently holds ~55% stake in United Spirits Ltd. (USL) of India, a leading alcoholic beverage company in India. USL has sales of over 90 million equivalent units of Indian Made Foreign Liquor (IMFL) and a significant market presence across India. IMFL already accounts for 8% of the total volumes for Diageo. However, the alcoholic drinks segment has witnessed a slowdown in the country, which grew just 0.2% in 2015 as a result of price hikes, bans, and distribution challenges in a few states. According to Euromonitor, the corresponding growth rates were 6% in 2014 and 2013, 9% in 2012, and 11% in 2011. USL owns the top selling beer in India – Kingfisher – which has a 41.3% share in the Indian market. Diageo has two of the top five most selling spirits in India in 2015. These are McDowell’s whiskey with 17.7% share (number 1) and Old Tavern whiskey with 4.1% share (number 5). Have more questions on Diageo? See the links below: Why Are We Bullish On Diageo? Why Is Diageo Bullish On The African Beer Market? Was Don Julio Tequila A Shot Worth Taking For Diageo? What Is India’s Share In The Net Sales Of Diageo Before And After The Purchase Of United Spirits Limited? Diageo: Year 2015 In Review How Will Diageo’s Revenue And EBITDA Composition Change In The Next Three Years? Where Will Diageo’s Growth Come From In The Next Three Years? What is Diageo’s Fundamental Value Based On Expected 2016 Results? What Is The Share Of Global Net Sales For Diageo, By Alcohol Category, And How Has It Changed? How Has Diageo’s Revenue And EBITDA Composition Changed In The Last 3 Years? How Has Diageo’s Volume Share Of Premium Spirits Changed Over The Years? What Are Diageo’s Highest And Lowest Growth Markets? By What Percentage Did Diageo’s Revenue & EBITDA Decline In The Last 3 Years? What Is Diageo’s Revenue And EBITDA Breakdown? How Has Diageo’s Volume Composition Changed In The Last 3 Years? Notes:
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    How Much Are Bank of America's Operating Divisions Worth Individually?
  • By , 5/31/16
  • tags: BAC C JPM WFC USB
  • What Proportion of Bank of America’s Revenues and Profits Come From Its Various Divisions? What Is The Constitution Of Bank of America’s Loan Book In Terms Of Loan Categories? View Interactive Institutional Research (Powered by Trefis): Global Large Cap |  U.S. Mid & Small Cap |  European Large & Mid Cap More Trefis Research
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    What Percentage Of Ralph Lauren's Stock Price Can Be Attributed To Growth?
  • By , 5/31/16
  • tags: RL COH
  • In this analysis, we quantify the percentage of  Ralph Lauren’s (NYSE:RL) stock that can be attributed to growth. We know that a stock’s valuation can be highly influenced by expectations of future earnings growth. However, in theory, if a company sees no growth opportunities it should distribute all its earnings as dividends to its shareholders. The only capital expenditure required in such a case will be equal to the amount required to replace or maintain existing assets. Mathematically, (capital expenditure + change in net working capital + change in net operating assets) = (depreciation and amortization). We assume that this amount of capital expenditure will be sufficient for the company to retain its market share and keep margins constant. In this case, if the company pays all earnings as dividends for the rest of the period, we can calculate the Present Value of Growth Opportunity (PVGO)  of a stock from the formula given below: PVGO = Current Stock Price – (Forecasted Earnings For The Next Period ÷ Cost Of Equity) Have more questions on Ralph Lauren? See the links below: Ralph Lauren Q4 And FY 2016 Earnings And Revenue Beat Expectations Why Have Ralph Lauren’s Licensing Revenues Been Declining In Recent Years? How Have The Number Of Ralph Lauren Stores Operated By The Company Changed Over The Past Five Years? Why Is The Online Market Place The Next Big Thing For Ralph Lauren? How Has Ralph Lauren Performed In Comparison To Its Peers? How Has Ralph Lauren’s Sales Breakdown According To Geographic Locations Changed Over The Past Five Years? How Will Ralph Lauren’s Retail Division Perform In The Next Five Years? How Did Just The Month Of February Make Ralph Lauren One Of The Worst Performing Companies, Amongst Its Peers? Why Did We Revise Our Price Estimate Of Ralph Lauren To $102? How Will Ralph Lauren’s Revenue And EBITDA Composition Change In The Next 3 Years? How Has Ralph Lauren’s Revenue And EBITDA Composition Changed In The Last 5 Years? By What Percentage Did Ralph Lauren’s Revenue & EBITDA Grow In The Last 5 Years? What Is Ralph Lauren’s Fundamental Value Based On Expected 2016 Results? What Is Ralph Lauren’s Revenue And EBITDA Breakdown? Ralph Lauren: Year 2015 In Review Notes:
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    Estee Lauder’s Expected Revenue And EBITDA Growth For 2016: Trefis Estimate
  • By , 5/31/16
  • tags: EL LRLCY REV
  • Have more questions about Estee Lauder ? See the links below. What Is Estee Lauder’s Revenue And EBITDA Breakdown? What Is Estee Lauder’s Fundamental Value On The Basis Of Its Forecasted 2015 Results? How Has Estee Lauder’s Revenue And EBITDA Composition Changed Over 2012-2016E? What Is Estee Lauder’s Fundamental Value Based On 2016 Estimated Numbers? What Drove Estee Lauder’s Revenue And EBITDA Growth Over The Last Five Years? Where Can Estee Lauder’s Growth Come From In The Next 5 Years? Estee Lauder Q3 FY16 Pre-Earnings Report How Did The Top Two Beauty Companies Perform In The Hair Care Segment Over The Last Five Years? Notes: See More at Trefis | View Interactive Institutional Research (Powered by Trefis) Get Trefis Technology
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    Can Motorola Solutions' EBITDA Growth Outpace Its Revenues?
  • By , 5/31/16
  • tags: MSI
  • It is unlikely that Motorola Solutions’s EBITDA will grow faster than revenues going forward since its cost of sales and R&D expenses are likely to increase at a relatively faster rate Cost of sales may increase relative to revenues due to pricing pressure resulting from rising competition from Harris, Airbus, Kenwood and others, as well as general government budget cuts in the wake of economic uncertainty R&D expenses are likely to increase relative to revenues in the near term since the company is pouring in resources for software innovation, the benefits of which will come at a later stage SG&A costs are likely to remain under control, but that will likely not be enough to boost Motorola’s EBITDA growth Have more questions about Motorola Solutions See the links below: Notes: What’s Motorola Solutions’ Revenue And Net Income Breakdown In Terms Of Different Operating Segments ? How Has Motorola’s Revenue & Cash Profit Composition Changed In The Last Four Years? By How Much Have Motorola Solutions’ Revenue and EBITDA Increased In The Last Five Years? Global Large Cap |  U.S. Mid & Small Cap |  European Large & Mid Cap | More Trefis Research
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    Tata Motors Rides On Strong Q4 Performance By Jaguar Land Rover To Boost Fiscal 2016 Results
  • By , 5/31/16
  • tags: TTM-BY-COMPANY TTM VLKAY DAI DDAIF GM TM F TSLA
  • Have more questions on Tata Motors? See the links below. Jaguar Land Rover Steps Up Unit Sales In Crucial Markets How Will Tata Motors’ Valuation Be Impacted If Jaguar Land Rover Sells Fewer Cars Than Estimated? What Will Be The Jump In Tata Motors’ Valuation If Jaguar Land Rover Sells More Cars Than Expected? Where Does Jaguar Land Rover Stand Relative To The German Top 3 In Crucial Markets? What’s Tata Motors’s Fundamental Value Based On Expected Fiscal 2016 Results? How Has Tata Motors’s Revenue And EBITDA Composition Changed Over FY12-FY16? By What Percentage Have Tata Motors’s Revenues And EBITDA Grown Over The Last Five Years? What Is Tata Motors’s Revenue And EBITDA Breakdown? Where Will Tata Motors’s Revenue And EBITDA Growth Come From Over The Next Three Years? Why Jaguar Land Rover Forms More Than 90% Of Tata Motors’ Valuation Notes: Get Trefis Technology  
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    How Valuable Is EMC's Information Storage Business?
  • By , 5/31/16
  • tags: EMC IBM HPE NTAP VMW CSCO
  • EMC (NYSE:EMC) has witnessed a slowdown in its core information storage business over the last couple of years – a trend consistent across most large storage vendors, including NetApp (NASDAQ:NTAP), IBM (NYSE:IBM), Hitachi Data Systems and HP Enterprise (NYSE:HPE). As a result, EMC’s Information Storage division has become the second most valuable division for the company after VMware (NYSE:VMW). Information Storage includes product sales for storage systems, related software product sales and post-sale services and hardware maintenance. Allied storage products and services including information security product suites and content management software are included in other divisions. EMC Information Storage contributes 33% to EMC’s total value even though it generated over two-thirds of EMC’s net revenue in 2015. Moreover, its EBITDA contribution was also over 50% in the same period. However, as you can see in the table below, Information Storage’s revenue and EBITDA contribution have fallen over the last five years, and the trend is likely to continue. The division’s forecast revenue growth – a CAGR of 2.1% – is slower than the overall company’s projected growth of roughly 3.5% in the next five years. Moreover, the EBITDA of the low-margin product business is expected to decline while the company-wide adjusted EBITDA is likely to grow over the coming years. Slow growth for EMC’s core information storage business is expected due to weakness in its hardware business. Storage hardware revenue could decline slightly over the next few years even as the overall industry grows at a modest pace. EMC and other large storage systems sellers are increasingly facing competition from smaller vendors and flash-storage startups. Over the last six to eight quarters, customer preference has been shifting to low-cost original design manufacturer (ODM) storage boxes, which is cutting into addressable market for large vendors. As a result, most established large vendors are only left with enterprise customers, which have limited scope of growth in demand. Newer IT and tech startups are opting for “white-box” storage systems. Have more questions about EMC? See link below: How Valuable Is VMware To EMC’s Business? ODM Storage Vendors Gain Share From Giants: EMC, HP, IBM, NetApp Lose Market Presence What’s EMC’s Fundamental Value Based On Expected 2016 Results? What Will EMC’s Revenue And EBITDA Look Like In 5 Years? How Has EMC’s Revenue & EBITDA Composition Changed Over The Last Five Years? What’s EMC’s Revenue & Earnings Breakdown By Segment? What Is EMC’s Presence In The Storage Systems Market? EMC Earnings: Weakness In Hardware Remains, Non-Core Businesses Drive Growth Notes: View Interactive Institutional Research (Powered by Trefis): Global Large Cap |  U.S. Mid & Small Cap |  European Large & Mid Cap More Trefis Research
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    How Much Did The 5 Largest European Investment Banks Make Through FICC Trading In Q1?
  • By , 5/31/16
  • tags: BCS CS DB HSBC UBS
  • The 5 largest European investment banks generated just under $6 billion in total FICC (fixed income, currencies and commodities) trading revenues over Q1 2016 – 32% lower than what they made a year ago. The global FICC trading industry has witnessed poor activity levels for three consecutive quarters now, and the trend is unlikely to improve in Q2. While the boom seen in the FICC trading business before the economic downturn is not likely to recur any time soon due to stricter regulations, overall improvement in global market conditions should boost these revenues over the second half of 2016. These five banks usually account for roughly 20-25% of the global FICC trading revenues for any given quarter. Notes: 1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment/ ask questions on the comment section 2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to the full Trefis analysis for  Barclays | Credit Suisse | Deutsche Bank | HSBC | UBS View Interactive Institutional Research (Powered by Trefis): Global Large Cap |  U.S. Mid & Small Cap |  European Large & Mid Cap More Trefis Research