Wm Morrison Supermarkets Limited: Difference between revisions
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=== Environmental Protection Policies === | === Environmental Protection Policies === | ||
To tackle the climate change and protect the environment, morrison has joined the "Task Force on Climate-related Finnical Discolosures(TFCD) and the board had layed out the following task to reduce waste and carbon: | To tackle the climate change and protect the environment, morrison has joined the "Task Force on Climate-related Finnical Discolosures(TFCD) and the board had layed out the following task to reduce waste and carbon: | ||
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<ref>https://www.which.co.uk/reviews/supermarkets/article/supermarket-price-comparison-aPpYp9j1MFin</ref> | |||
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Revision as of 23:21, 24 August 2023
Future Development
Morrison's is a major British grocery store with a history spanning over a century. It offers a wide range of products, too numerous to list comprehensively, but we can provide an overview of some of Morrison's ongoing developments.
Acquisition of McColl’s
On May 9, 2022, Morrison's acquired the trade section and a majority of assets of McColl's, a company specializing in convenience stores. This move aims to establish a robust platform within the convenience sector. Part of this plan includes a target to increase the number of Morrison's own convenience stores under the Daily fascia from 450 to 1000 within the next two years.
It's worth noting that McColl's currently faces financial challenges, leading Morrison's decision to close 132 of its underperforming stores as part of the acquisition.
Additionally, Morrison's is actively working on enhancing various aspects of its business, including supply chain, logistics, workforce training, and administrative efficiency, as they integrate McColl's into their operations.
Environmental Protection Policies
To tackle the climate change and protect the environment, morrison has joined the "Task Force on Climate-related Finnical Discolosures(TFCD) and the board had layed out the following task to reduce waste and carbon:
| Supermarket | Average trolley price |
| Morrisons | £342 |
| Asda | £342 |
| Tesco | £361 |
| Ocado | £368 |
| Sainsbury's | £371 |
| Waitrose | £377 |
| 2018 FY | 2019 FY | 2020 FY | 2021 FY | 2022 FY | 2023 E | 2024 E | 2025 E | 2026 E | 2027 E | |
| Total Revenue | 22,479 | 23,534 | 22,416 | 24,727 | 23,310 | 26,807 | 30,828 | 35,452 | 40,770 | 46,885 |
Magnitude: Millions (M)
Discounted Cash Flow
| Fiscal Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 |
| FCF | 345 | 447 | 529 | NA | 194 | 214 | 235 | 258 | 284 | 313 |
| Projection Year | 1 | 2 | 3 | 4 | 5 | |||||
| Present Value | 227 | 265 | 310 | 362 | 423 |
Magnitude: Millions (M)
| WACC | 6.21% |
| Sum of PV of FCF | 1,585 |
| Growth rate | 4.50% |
| Terminal Value | 25,801 |
| Present Value of Terminal Value | 19,089 |
| Enterpise Value | 20,674 |
| (+) cash | 333 |
| (-) Debt | 3,757 |
| Equity Value | 17,250 |
| Diluted Shares Outstanding | 2,451 |
| Implied share price | 7 |
| Current share price | 3.65 |
Magnitude: Millions (M)
| Sensitivity Table | ||||||
| Growth Rate | ||||||
| 7 | 3.50% | 4.00% | 4.50% | 5.00% | 5.50% | |
| WACC | 5.21% | 6.943521281 | 5.17055606 | 5.17055606 | 6.943521281 | 17.96682183 |
| 5.71% | 10.11775476 | 6.896522233 | 6.896522233 | 10.11775476 | 62.28769622 | |
| 6.21% | 10.11775476 | 6.896522233 | 6.896522233 | 10.11775476 | 62.28769622 | |
| 6.71% | 6.943521281 | 5.17055606 | 5.17055606 | 6.943521281 | 17.96682183 | |
| 7.21% | 4.11841452 | 3.340505278 | 3.340505278 | 4.11841452 | 7.037923491 | |