EMC CORP/MA's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. EMC CORP/MA has weak liquidity. Currently, the Quick Ratio is 0.88 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 9.81% 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.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||6079.0||6032.0|
|Net Income ($mil)||480.0||588.0|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||7642.0||8147.0|
|Total Assets ($mil)||45345.0||45028.0|
|Total Debt ($mil)||7444.0||5494.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||68.23||69.13|
|Return on Assets||5.21||5.75|
|Return on Equity||11.56||11.42|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||1938.84||2034.91|
|Div / share||0.12||0.12|
|Book value / share||10.54||11.14|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2.0029628E7||1.5604031E7|
HOLD. The current P/E ratio indicates a premium compared to an average of 14.24 for the Computers & Peripherals industry and a value on par with the S&P 500 average of 22.01. To use another comparison, its price-to-book ratio of 2.41 indicates a discount versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 4.78. The price-to-sales ratio is above the S&P 500 average, but well below the industry average.
|EMC 21.36||Peers 14.24||EMC 8.50||Peers 8.35|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
EMC is trading at a significant premium to its peers.
Average. 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.
EMC is trading at a valuation on par to its peers.
|EMC 12.90||Peers 12.82||EMC 0.55||Peers 2.08|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
EMC is trading at a valuation on par with 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.
EMC trades at a significant discount to its peers.
|EMC 2.41||Peers 4.78||EMC -3.26||Peers 23.86|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
EMC is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, EMC is expected to significantly trail its peers on the basis of its earnings growth rate.
|EMC 1.99||Peers 2.50||EMC 3.07||Peers 20.70|
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.
EMC is trading at a discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
EMC significantly trails its peers on the basis of sales growth
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