Financial analyst: missions, skills, training, salary and career development

The rapid evolution of financial markets and theintegration of cutting-edge technologies have made financial management more complex and dynamic. Against this backdrop, the role of the Financial Analyst has become crucial. Charged with assessing and forecasting companies' financial performance, this professional uses advanced analytical tools to provide strategic recommendations, ensuring informed investment decisions and the long-term future of portfolios.

Description of the job of Financial Analyst

The Financial Analyst is a key professional in the field of corporate finance. Their main task is to assess the financial health of companies, sectors and markets in order to provide investment recommendations. They play a crucial role in the decision-making process for investors, companies and financial institutions.

Financial analysts generally work in financial institutions such as banks, fund management companies,insurance companies or consultancies. They must master the tools and methods of financial analysis to anticipate economic trends and advise their clients or companies.

What is the role and mission of the Financial Analyst?

Financial analysis and company valuation

Financial analysis and company valuation are at the heart of the Financial Analyst's role. They study the financial statements of listed companies, analysing results, balance sheets and cash flows to assess the financial performance and profitability of companies. The aim is to determine the intrinsic value of shares and provide buy or sell recommendations.

Monitoring financial markets

The Financial Analyst constantly monitors the financial markets to identify trends and investment opportunities. They analyse economic data, financial reports, market news and economic indicators to provide accurate and informed forecasts. This constant monitoring enables us to advise investors on the best strategies to adopt.

Financial reporting

Preparing detailed financial reports and recommendations is an essential task for the Financial Analyst. These reports include in-depth analyses, financial forecasts and strategic advice. They are used by fund managers, institutional investors and finance directors to make informed decisions.

Investment advice and recommendations

Financial Analysts act as advisors to investors and companies. They recommend investment strategies based on their analyses and forecasts. These recommendations may include advice on buying or selling securities, asset allocation and hedging strategies against financial risks.

Tools and technologies used by the Financial Analyst

Technological tools are essential for Financial Analysts. Here are some of the main tools used:

Financial analysis software

Software such as Bloomberg, Reuters and FactSet are widely used to access real-time financial data, analyse market trends and produce detailed financial reports. These tools enable the Financial Analyst to work with accurate and up-to-date data.

Financial models and simulation tools

Financial models and simulation tools, such as Excel and MATLAB, are used to create financial forecasts, evaluate economic scenarios and test different market hypotheses. These tools are essential for analysis and strategic decision-making.

Financial databases

Access to financial databases, such as S&P Capital IQ and Morningstar, is crucial for the Financial Analyst. These databases provide detailed information on companies, sectors and markets, facilitating benchmarking and performance evaluation.

What skills do you need to be a good Financial Analyst?

Professional skills:

• Mastery of financial analysis techniques: In-depth knowledge of business valuation methods, financial modelling and market analysis.
• Accounting and finance skills: Good understanding of accounting principles and financial statements.
• Analysis and reporting: Ability to analyse complex financial data and produce clear and relevant reports.

Personal skills:

• Rigour and organisation: Ability to manage several tasks in a methodical and precise manner.
• Communication skills: Ability to explain complex financial concepts to non-specialists.
• Analytical mindset: Ability to identify problems and propose innovative solutions.
• Intellectual curiosity and strategic intelligence: Interest in economic and financial news, and ability to keep abreast of market developments.

What are the current challenges facing Financial Analysts?

Digital transformation and big data

The integration of big data and artificial intelligence into financial analysis is a major challenge. Financial Analysts must adapt to these new technologies to improve the accuracy of their forecasts and optimise their recommendations.

Risk management and regulatory compliance

With the rapid evolution of financial regulations,Financial Analysts must constantly monitor and adapt their analytical methods to ensure compliance and manage financial risks.

Financial market volatility

The increased volatility of financial markets represents a challenge for Financial Analysts. They must be able to anticipate market fluctuations and propose investment strategies adapted to a constantly changing environment.

How do I become a Financial Analyst?

Education and training

To become a Financial Analyst, you should have a 5-year degree in finance, accounting, management or economics. The following courses are particularly popular:

• Master's degree in finance, economics or management.
• Business school diploma with a specialisation in finance.
• Accounting qualifications such as CFA (Chartered Financial Analyst) and CIIA (Certified International Investment Analyst).

EM Normandie offers courses tailored to this profession, in particular the MSc Banking, Finance and FinTech. This course provides the necessary skills in financial analysis, risk management and investment appraisal, offering a comprehensive preparation for becoming a successful Financial Analyst.

Professional experience

Previous professional experience in finance, accounting or auditing is often required. Internships and work-study programmes offer valuable opportunities to gain this practical experience.

What are the career prospects for a Financial Analyst?

Financial Analysts can progress to positions such as Investment Manager, Finance Director or Portfolio Manager. They may also consider opportunities abroad or in larger companies.

What does a Financial Analyst earn?

The salary of a Financial Analyst varies according to experience, the size of the company and the sector of activity:

• Beginner: Gross monthly salary (approx.): €3,000 - €4,000
• 2-5 years' experience: Gross monthly salary (approx.): €4,000 - €6,000
• 5+ years' experience: Gross monthly salary (approx.): €6,000 and more

In what field does a Financial Analyst work?

Financial Analysts can work in a variety of sectors such as :

• Banks: investment analysis and financial risk assessment.
• Fund management companies: Portfolio performance evaluation and investment recommendations.
• Insurance: risk analysis and management of financial investments.
• Consulting firms: advice on financial strategy and mergers & acquisitions.
• Companies: Analysis of investment projects and evaluation of financial performance.

In summary

The Financial Analyst is essential for assessing the financial health of companies and advising on the best investment strategies. Thanks to their skills in finance, analysis and management, they play a strategic role in decision-making. With varied career prospects and the integration of new technologies, this profession offers interesting development opportunities in a constantly changing environment.