Steinway Financial Analysis 2012

Course Title: Understanding Financial statements

January 2014

STEINWAY MUSICAL INSTRUMENTS

Financial Analysis for 2012-2019

Financial lAnalysis for 2012-2019

Professor :

Team member:

Sommaire

1. Introduction: 3

2. Company overview: 3

3. Musical instruments industry analysis 3

3.1. Value chain activities 3

3.2. Profit pool mapping 4

3.3. Porter’s five forces analysis 6

3.4. Industry Comparison 7

4. Financial performance analysis 7

4.1. Financial statements cleansing 7

4.2. Five year summary 8

4.3. Return on equity 9

4.3.1. Net profit margin 9

4.3.2. Asset turnover 11

4.3.3. Leverage 12

4.3.4. General Ratios 12

5. Steinway valuation 13

5.1.1. P/E multiple 13

5.2. EBITDA multiple 14

5.3. Discounted cash flows 14

6. Conclusion 16

References: 16

Appendice 1: Balance Sheet 17

Appendice 2 : Income Statement 18

Appendice 3 : Cash Flow Statement 19

1. Introduction:

In this case we’ll study Steinway & Sons Co. a manufacturer musical instruments. For this, we’ve used annual financial reports, specialized industry magazines and lot of internet sources that provide useful information about the industry worldwide. We will look ahead in this report for the industrial environment; we will make a comparison of the firm's condition and performance with its competitors. We will analyze different financial statements and provide calculation and interpretation of financial ratios. Finally, we will make a valuation of the company.

2. Company overview:

Steinway & Sons, also known as Steinway, is an American and German manufacturer of handmade pianos and purveyor of subcontracted pianos from suppliers sold under the secondary names Boston and Essex. Steinway was founded 1853 in Manhattan in New York City by German immigrant Heinrich Engelhard Steinweg (later known as Henry E. Steinway). The company's growth led to the opening of a factory and company town in what is now the Astoria section of Queens in New York...