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Each member individually should make a recommendation to buy, hold or sell the company. You should also discuss the relative strengths and weaknesses of your group’s entire analysis. The discussion...

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Each member individually should make a recommendation to buy, hold or sell the company. You should also discuss the relative strengths and weaknesses of your group’s entire analysis. The discussion should focus on what the analysis has accomplished and its limitations. Data and information on the above items can be sourced from: - IFN’s financial statements (annual, semi-annual, and quarterly) - IFN’s investor presentations (i.e. presentations that accompany AGMs and investor days) – this may be especially relevant for items 5 and 6. - Reports/analyses by equity analysts
Discussion of the relative strengths and weaknesses of the entire analysis.
Answered Same Day Aug 14, 2021

Solution

Nitish Lath answered on Aug 22 2021
131 Votes
Brief introduction about the company:
Infigen Energy is an ASX listed entity which was founded in year 2003. The company is headquartered at Sydney, Australia. The company was one of the largest wind farm energy producers in Australia and renewable energy asset administration company. The company is having around 100 employees and the company is also having also around 18 wind farms United State of America (Infigen Energy). The CEO of the company is Mr. Ross Rolfe.
Share price history of the company:
The share price of the company as on closing of financial year 2019 was 0.48 AUD per share whereas it was 0.66 AUD as on closing of financial year 2018. The share price history over past 5 years can be explained from below graph:
Financial analysis of the company:
The financial position and performance of the company is showing positive trend over past five years whereas the share prices have been declined over past five years.
The analysis of profitability ratio of the company over past five years is as below:
The net profit margin ratio of the company has shown increasing trend year on year basis and from last 2 years the ratio is around 21% and the company is earning good profit margin on its revenue. The EBIT, EBITDA and EBITA of the company are consistently almost at equal level which shows that the company is maintain its margins and controlling its costs to great extent. The return on equity of the company is 8.69% and ROA is 6.61% which is almost at equal level as compared to past years. It shows that the company is consistently maintaining its profit margin over past three years (Infigen Energy). Thus, profitability ratios for past years are showing positive trend for the company.
The Assets turnover ratios analysis of the company over past five years are as below:
The assets turnover ratios of the company measure the efficiency of assets of the company to generate revenue and are very effective tool to analyze the performance of the company in cu
ent as well as future period. In the case, the invested capital turnover ratio is 0.23 times which shows that invested capital is only able to generate revenue 0.23 times only and it is very low as compared to industry average. The LT turnover ratio/ Assets turnover and PPE turnover ratios are ranging between 0.20 to 0.25 times which shows that long- term assets are not generating low revenue as compared to industry standard (Infigen Energy). The inventory turnover ratio of the company is 9.11 times and it has been increase significantly as compared to past years which shows that the entity is converting its inventory to revenue 9 times and the inventory of company is quickly converting into sales which is a positive indicator for the company.
The liquidity and solvency position of the company over past five years are as below:
In above graph, we can see that cu
ent ratio of the company has declined by 100% i.e. from 3.10 to 1.58 times which shows that the liquidity position of the company has become weaker in cu
ent year as compared to previous year. However due to increase in earnings the interest coverage ratio of the...
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