This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
EMC Corp
EMC : NYSE : Technology
$24.13 | %
Today's Range: 24.05 - 24.35
Avg. Daily Volume: 13,054,700
02/12/16 - 4:02 PM ET

Financial Analysis


EMC CORP/MA's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. EMC CORP/MA has average liquidity. Currently, the Quick Ratio is 1.03 which shows that technically this company has the 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 remained virtually unchanged only decreasing by 3.45% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q4 FY15 Q4 FY14
Net Sales ($mil)7015.07049.0
EBITDA ($mil)1849.02166.0
EBIT ($mil)1365.01672.0
Net Income ($mil)771.01146.0


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)9275.08321.0
Total Assets ($mil)46612.045885.0
Total Debt ($mil)6774.05495.0
Equity ($mil)21140.021896.0


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin68.5770.39
EBITDA Margin26.3530.72
Operating Margin19.4623.72
Sales Turnover0.530.53
Return on Assets4.265.91
Return on Equity9.4112.39
Debt Q4 FY15 Q4 FY14
Current Ratio1.171.34
Debt/Capital0.240.2
Interest Expense43.039.0
Interest Coverage31.7442.87


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)1943.01985.0
Div / share0.120.12
EPS0.390.56
Book value / share10.8811.03
Institutional Own % n/a n/a
Avg Daily Volume1.3012236E72.1001096E7

Valuation


HOLD. The current P/E ratio indicates a significant premium compared to an average of 12.43 for the Computers & Peripherals industry and a premium compared to the S&P 500 average of 21.13. To use another comparison, its price-to-book ratio of 2.27 indicates valuation on par with the S&P 500 average of 2.51 and a discount versus the industry average of 3.56. The current price-to-sales ratio is above the S&P 500 average, but below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
EMC 24.26 Peers 12.43   EMC 8.93 Peers 7.79

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.

 

Premium. 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 premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
EMC 12.50 Peers 11.45   EMC 0.28 Peers 1.48

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

EMC is trading at a premium 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.

EMC 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
EMC 2.27 Peers 3.56   EMC -22.14 Peers 9.46

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EMC 1.94 Peers 2.05   EMC 1.39 Peers 12.42

Average. 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 valuation on par with 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

 

 

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free

Latest Stock Upgrades/Downgrades


Top Rated Stocks Top Rated Funds Top Rated ETFs