Strategisk regnskabsanalyse og værdiansættelse af IC Companys A/S

Morten Friis Munksgaard

Student thesis: Master thesis


The main purpose of this thesis is to perform a valuation of the Danish fashion company IC Companys A/S as of 30 June 2008 based on a strategic financial analysis. IC Companys is the result of a merger from 2001 between two fashion industry competitors; InWear Group A/S and Carli Gry International A/S, and is listed on the Copenhagen Stock Exchange. The combine is one of Northern Europe’s largest manufacturers of fashion, and has a multi-brand portfolio consisting of five key brands and six portfolio brands. IC Companys provides international fashion clothes to quality-conscious men and women, primarily in Scandinavia and Northern Europe. IC Companys has had difficulties in its brief lifetime due to management troubles and disappointing financial performance. IC Companys has once again had changes in the management in 2008, and are now focusing on new strategies. Based on this, it would be interesting to perform a valuation to analyse the fluctuating level of the stock. The strategic analysis showed that IC Companys’ main strength is the multi-brand strategy consisting of 11 different fashion brands, each with separate design and management teams. The brands are supported by a shared platform providing IT-systems, marketing, distribution, logistics etc. IC Companys is at present under pressure due to the global financial crisis that has lowered the private consumption on the combine’s main markets with declining sales. An analysis of the return on equity showed, that the EBIT-margin is the main underlying driver. It will be hard to increase the EBIT-margin the following years due to the economic recession, which will make it difficult to realize the financial ambition of a growth and EBIT-margin of 15 % within the next four years. The DCF-evaluation resulted in an estimated share price of DKK 125.7. The estimated share price is based on assumptions made on basis of the strategic financial analysis. The sensitivity analysis showed that the results are highly affected by changes in the underlying assumptions. To make the evaluation less doubtful, interviews of two stock analysts were made. These interviews gave cause to some slight changes in the underlying assumptions. As a result of this, the estimated share price is between DKK 122.2 and DKK 132.2. Therefore, it is not recommendable to buy shares in IC Companys at the market price of DKK 160 as of 30 June 2008.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2009
Number of pages116