Jaguar Land Rover Memo 080719
- Understand potential external scenarios and impact for Jaguar Land Rover (JLR) – no-deal Brexit, US tariffs
- Understand valuation of JLR (including inference from recent impairment charge) and its key sensitivities
- Understand JLR’s cost structure and degree of operating leverage vs competitors
- Understand JLR’s competitive positioning by nameplate and potential financial impact of new nameplates
- Understand JLR’s liquidity and where the major liquidity pressure points are likely to arise in time
- Understand recovery rate potential
- Valuation-based quantification of high (equity-like) risks facing senior unsecured bondholders
- Unit sales projections for key marques based on geographic mix and share of premium car market and run in / run out pattern of prior marque updates as well as new nameplates
- How has JLR’s share of the premium market developed since coming to the High Yield market?
- What key drivers will deliver the sales, earnings and free cash flow growth needed to get JLR through a challenging period?
- How well is JLR positioned competitively?
- How does JLR’s cost base compare to peers?
- How can we model the impact of a no-deal Brexit or US tariffs?
- What do Q3 2019 impairment charge disclosures tell us about valuations?
- Why is JLR’s enterprise value so sensitive to assumption changes?
- What is the extent of potential priming and how does it impact recovery rate?
- View, Variant Perception & Recommendation
- Business Overview
- Industry Drivers
- Competitive Positioning
- Valuation, Recoveries & Scenarios
- Model Summaries
Jaguar Land Rover