Stock Market Project - Family Dollar Stores Inc Essay

Stock foodstuff Project - Family Dollar Stores Inc - Essay ExampleCompany Information The Family Dollar Stores Inc was opened in 1959 and is instanter operating more than 6000 keeps across the country. Its one of the largest regional based chains in US tenanted in the retail business across the different states in the country. The warm is basically considered as a preference by the consumers who are willing to save on their groceries and other retail items. Though non all the items are sold under $1 however, the overall prices are reasonable and considered as cheap by most of the consumers. Major products of the firm include clothing, food and other household items. besotted is a regional business with little or no presence in other countries of the world however, it has achieved redoubted growth in its domestic market by regularly opening new stores across the country. Firm is reseller and sell retail items such durable and non-durable consumer goods. Competitors Overview and Industry Trends Major competitors of the firm include Wal-Mart, Dollar genesis Corporation as tumefy as Dollar Tree Inc. Wal-Mart is quite bigger in the surface with international presence in different countries of the world. However, Wal-Mart is a not a typical dollar store though it offers low priced products to its customers. Other competitors are more or less same in sizing of the firm and are serving different niche markets. (Hoovers, 2011) Industry trends suggest that personal income as tumefy as the fashion trends will be the dominating factors in clothing and other retail segments. collectible to the menstruum economic crisis, the overall purchasing power of the consumers has declined thus restricting the consumers to spend lavishly. Financial depth psychology The overall operating margin of the firm is over 7% with profit margin in the begin of 4.5% during the current period of 2010. Sales for the period ending August 2010 showed an increase of 6.3% despite the f act that the overall economic situation of the country was not feasible due to current economic crisis. Recent figures for the backside also suggest that the firm has been able to record a return on equity of 28.70% with natural return on assets of approximately 13%. This performance suggest that the firm has been able to perform well during the period and consistently recorded better performance despite difficult economic situation frequent in the country. Stocks Performance Analysis Firm has a total market capitalisation of more than $6 Billions with 122 millions shares outstanding. Past 52 weeks range of prices suggest that the firm has hit the high appraise of $55.590 whereas the lowest price during the same period was recorded at $35.31. (Bloomberg, 2011). It is also important to note that the firm has been able to withstand the poison pill by rejecting the takeover bid from Peltz Train. (Burritt, 2011) A closer psychoanalysis of the firms personal line of credit performa nce would suggest that the overall share prices of the firms stock fluctuated over the period of time. During the first few years from 2003, the overall prices gradually increased while veneering a dip in the prices during 2006. (Yahoo Finance, 2011). It is also important to note that the share prices of the firm remained stable during the current financial crisis despite the fact that overall consumer activity was low. This may however, be attributed to the fact that firm is considered as cheap chain store offering low cost products to