-0.74 | -1.50%
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 ($mil) | 11296.0 | 10113.0 |
| EBITDA ($mil) | 2600.0 | 2217.0 |
| EBIT ($mil) | 2145.0 | 1856.0 |
| Net Income ($mil) | 1488.0 | 1431.0 |
| Balance Sheet | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 3601.0 | 6813.0 |
| Total Assets ($mil) | 50223.0 | 42600.0 |
| Total Debt ($mil) | 14825.0 | 12251.0 |
| Equity ($mil) | 9960.0 | 10809.0 |
| Profitability | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Gross Profit Margin | 37.84 | 36.02 |
| EBITDA Margin | 23.02 | 21.92 |
| Operating Margin | 18.99 | 18.35 |
| Sales Turnover | 0.79 | 0.79 |
| Return on Assets | 7.03 | 7.82 |
| Return on Equity | 35.35 | 30.74 |
| Debt | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Current Ratio | 1.58 | 2.08 |
| Debt/Capital | 0.6 | 0.53 |
| Interest Expense | 125.0 | 112.0 |
| Interest Coverage | 17.16 | 16.57 |
| Share Data | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Shares outstanding (mil) | 936.85 | 927.38 |
| Div / share | 0.41 | 0.41 |
| EPS | 1.57 | 1.52 |
| Book value / share | 10.63 | 11.66 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 5149248.0 | 6193514.0 |
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 |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| 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. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| 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. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| 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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