E.I. du Pont de Nemours & Company
DD : NYSE : Basic Materials

$48.43 -0.74 | -1.50%
Today's Range: 48.35 - 48.94
Avg. Daily Volume: 5,011,500
05/30/12 - 4:00 PM ET
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Financial Analysis


DU PONT (E I) DE NEMOURS's gross profit margin for the first quarter of its fiscal year 2012 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. DU PONT (E I) DE NEMOURS has weak liquidity. Currently, the Quick Ratio is 0.98 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 7.85% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.



Income Statement Q1 FY12 Q1 FY11
Net Sales ($mil)11296.010113.0
EBITDA ($mil)2600.02217.0
EBIT ($mil)2145.01856.0
Net Income ($mil)1488.01431.0


Balance Sheet Q1 FY12 Q1 FY11
Cash & Equiv. ($mil)3601.06813.0
Total Assets ($mil)50223.042600.0
Total Debt ($mil)14825.012251.0
Equity ($mil)9960.010809.0


Profitability Q1 FY12 Q1 FY11
Gross Profit Margin37.8436.02
EBITDA Margin23.0221.92
Operating Margin18.9918.35
Sales Turnover0.790.79
Return on Assets7.037.82
Return on Equity35.3530.74
Debt Q1 FY12 Q1 FY11
Current Ratio1.582.08
Debt/Capital0.60.53
Interest Expense125.0112.0
Interest Coverage17.1616.57


Share Data Q1 FY12 Q1 FY11
Shares outstanding (mil)936.85927.38
Div / share0.410.41
EPS1.571.52
Book value / share10.6311.66
Institutional Own % n/a n/a
Avg Daily Volume5149248.06193514.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 16.82 for the Chemicals industry and a discount compared to the S&P 500 average of 15.19. Conducting a second comparison, its price-to-book ratio of 4.58 indicates a significant premium versus the S&P 500 average of 2.12 and a premium versus the industry average of 3.76. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. The valuation analysis reveals that, DU PONT (E I) DE NEMOURS seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DD 13.01 Peers 16.82   DD 9.43 Peers 12.15

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

DD is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

DD is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DD 10.14 Peers 15.67   DD 0.77 Peers 1.11

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

DD is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

DD trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DD 4.58 Peers 3.76   DD 4.17 Peers 22.67

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DD is trading at a premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, DD is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DD 1.15 Peers 1.89   DD 18.22 Peers 17.33

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

DD is trading at a significant discount to its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

DD is keeping pace with its peers on the basis of sales growth.

 

 

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