CFA L1 / Equity / M5. Company Analysis I
Module 5 · Equity

Company Analysis: Past and Present

EN: Financial profile, business strategy, and competitive positioning.
VN: Hồ sơ tài chính, chiến lược, vị thế cạnh tranh.

1. Financial Profile Components Concept

About: Five dimensions — growth, profitability, capital structure, returns (ROIC/ROE/ROA), CF quality. Together describe historical financial track record.Tóm tắt: 5 chiều: growth, profitability, capital, returns, CF quality. Hồ sơ tài chính lịch sử.
  • Growth Historical revenue, earnings, FCF growth.
  • Profit Margins (gross, op, net) and trends.
  • Capital Capital structure, leverage, liquidity.
  • Returns ROIC, ROE, ROA.
  • CF quality CFO vs NI, FCF generation.

2. Business Profile Concept

About: Strategy (cost leader / differentiation / focus per Porter), product/geographic/customer mix, competitive position (market share, brand). Drives sustainability of returns.Tóm tắt: Chiến lược, mix sản phẩm/địa lý/khách hàng, vị thế cạnh tranh.
  • Strategy Cost leader, differentiation, focus (Porter generic strategies).
  • Mix Geographic, product, customer concentration.
  • Position Market share, brand strength, scale.

3. Industry Analysis Inputs Concept

About: Lifecycle (embryonic → growth → shake-out → mature → decline), 5 Forces, PEST. Frames the playing field before evaluating the company.Tóm tắt: Lifecycle (5 giai đoạn), 5 Forces, PEST. Khung phân tích ngành.
  • Lifecycle Embryonic, growth, shake-out, mature, decline.
  • 5 Forces See M6 (competitive intensity, supplier/buyer power, substitutes, new entrants).
  • PEST Political, economic, social, technological drivers.

Practice problem Practice

Practice problem

A company has revenue growth of 25%/year for 3 years, gross margin rising from 30% to 45%, and ROE doubling from 8% to 16%. Which financial profile element is strongest?

Show solution
Growth: 25% revenue growth = strong.
Profitability: gross margin +15pp and ROE doubling = strong improvement.
Returns improvement is most striking — ROE doubling indicates significant operational leverage.
Profitability (and returns) improvement is the standout — likely scaling with operating leverage.