The First Marblehead Corporation (FMD) : Company Profile and SWOT Analysis by WMIntelligence

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									The First Marblehead Corporation

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The First Marblehead Corporation                                                 Financial Snapshot

                                                                                 Operating Performance
Fast Facts
                                       The Prudential Tower, Boston,             The company reported revenue of US$41 million
Headquarters Address                   Massachusetts, 02199-8157,United States   during the fiscal year 2012 (2012). In 2012, the
                                       of America                                company recorded an operating margin of -130.77%,
Telephone                              + 1 617 6382000                           as against -4084.36% in 2011.

Fax                                    N/A                                       Revenue and Margins

Website                                www.firstmarblehead.com

Ticker Symbol, Stock Exchange          FMD, New York Stock Exchange

Number of Employees                    306

Fiscal Year End                        June

Revenue (in US$ million)               41




                                                                                 Return on Equity
SWOT Analysis
                                                                                 The company recorded a return on equity (ROE) of
Strengths                              Weaknesses                                485.59% for the fiscal year 2012, as compared to its
                                                                                 peers, Federal Home Loan Mortgage Corporation
Broad product portfolio                Limited scale of operations               (Ticker: FMCC), SLM Corporation (Ticker: SLM) and
                                                                                 Nelnet, Inc. (Ticker: NNI), which recorded ROEs of
Capital adequacy                                                                 124.41%, 18.56% and 15.28% respectively.
                                                                                 Furthermore, the company reported an operating
                                                                                 margin of -130.77% in 2012.
Increase in total deposits

                                                                                 Return on Equity
Strong financial performance

Opportunities                          Threats

Booming mortgage market in the US      Changing regulations

Compliance with listing requirements   Increase in compliance costs

Growing market for student loans




                                                                                 Financial Leverage

                                                                                 The company reported a debt to equity ratio of 0.00 in
                                                                                 2012, as compared to its peers, Federal Home Loan
                                                                                 Mortgage Corporation, SLM Corporation and Nelnet,
                                                                                 Inc., which recorded debt to equity ratios of 222.84,
                                                                                 34.04 and 21.54 respectively. Furthermore, in 2012,
                                                                                 the company recorded a debt to capital ratio of 0.00,
                                                                                 as compared to its peers, Federal Home Loan
                                                                                 Mortgage Corporation, SLM Corporation and Nelnet,
                                                                                 Inc., which recorded debt to capital ratios of 0.99,
                                                                                 0.95 and 0.94 respectively.




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The First Marblehead Corporation - SWOT Profile                                                                          Page 1
The First Marblehead Corporation

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ......................................................................................................................................... 5
    1.2       Business Description ....................................................................................................................................... 6
    1.3       Major Products and Services ........................................................................................................................... 7
2     Analysis of Key Performance Indicators ............................................................................................... 8
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ....................................... 8
    2.2       Key Financial Performance Indicators ............................................................................................................ 11
      2.2.1       Revenue and Operating Profit.................................................................................................................... 11
      2.2.2       Asset and Liabilities ................................................................................................................................... 12
    2.3       Competitive Benchmarking ............................................................................................................................ 13
      2.3.1       Efficiency................................................................................................................................................... 14
3     SWOT Analysis ...................................................................................................................................... 15
    3.1       SWOT Analysis - Overview ............................................................................................................................ 15
    3.2       Strengths ....................................................................................................................................................... 15
    3.3       Weaknesses .................................................................................................................................................. 15
    3.4       Opportunities ................................................................................................................................................. 16
    3.5       Threats .......................................................................................................................................................... 16
4     Company Statement .............................................................................................................................. 17
5     History .................................................................................................................................................... 20
6     Key Employees ...................................................................................................................................... 21
7     Key Employee Biographies ................................................................................................................... 22
8     Locations and Subsidiaries .................................................................................................................. 23
    8.1       Head Office ................................................................................................................................................... 23
    8.2       Other Locations and Subsidiaries .................................................................................................................. 23
9     Appendix ................................................................................................................................................ 24
    9.1       Methodology .................................................................................................................................................. 24
    9.2       Ratio Definitions ............................................................................................................................................ 24
    9.3       Disclaimer ..................................................................................................................................................... 28




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The First Marblehead Corporation - SWOT Profile                                                                                                                        Page 2
The First Marblehead Corporation

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List of Tables

Table 1: Major Products and Services ............................................................................................................................. 7
Table 2: Key Ratios - Annual ........................................................................................................................................... 8
Table 3: Key Ratios - Interim ......................................................................................................................................... 10
Table 4: Key Capital Market Indicators .......................................................................................................................... 10
Table 5: History ............................................................................................................................................................. 20
Table 6: Key Employees ................................................................................................................................................ 21
Table 7: Key Employee Biographies .............................................................................................................................. 22
Table 8: Subsidiaries ..................................................................................................................................................... 23
Table 9: Locations ......................................................................................................................................................... 23




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The First Marblehead Corporation - SWOT Profile                                                                                                                      Page 3
The First Marblehead Corporation

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List of Figures

Figure 1: Revenue and Operating Profit ......................................................................................................................... 11
Figure 2: Financial Position ........................................................................................................................................... 12
Figure 3: Efficiency ........................................................................................................................................................ 14




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The First Marblehead Corporation - SWOT Profile                                                                                                                     Page 4
The First Marblehead Corporation

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1 Business Analysis

1.1   Company Overview

The First Marblehead Corporation (First Marblehead) is a financial service provider based in US. The company primarily
offers education loans programs to graduates, undergraduates and K-12 students. It also offers tuition billing, tuition
planning, refund management, payment technology, retail bank
								
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