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EMC Corp
EMC : NYSE : Technology
$30.04 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 15,356,400
11/26/14 - 4:00 PM ET

Financial Analysis


EMC CORP/MA's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. EMC CORP/MA has average liquidity. Currently, the Quick Ratio is 1.12 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.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.53% 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.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)6032.05539.0
EBITDA ($mil)1506.01359.0
EBIT ($mil)1039.0947.0
Net Income ($mil)588.0586.0


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)8147.010597.0
Total Assets ($mil)45028.044602.0
Total Debt ($mil)5494.07151.0
Equity ($mil)22669.022326.0


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin69.7969.58
EBITDA Margin24.9624.53
Operating Margin17.2217.1
Sales Turnover0.530.51
Return on Assets5.756.13
Return on Equity11.4212.25
Debt Q3 FY14 Q3 FY13
Current Ratio1.421.53
Debt/Capital0.20.24
Interest Expense40.058.0
Interest Coverage25.9816.33


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)2035.02057.85
Div / share0.120.1
EPS0.280.27
Book value / share11.1410.85
Institutional Own % n/a n/a
Avg Daily Volume1.4958546E71.5114079E7

Valuation


BUY. EMC CORP/MA's P/E ratio indicates a premium compared to an average of 18.82 for the Computers & Peripherals industry and a premium compared to the S&P 500 average of 19.91. To use another comparison, its price-to-book ratio of 2.68 indicates valuation on par with the S&P 500 average of 2.75 and a significant discount versus the industry average of 5.16. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
EMC 24.28 Peers 18.82   EMC 9.23 Peers 16.22

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.

 

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.

EMC is trading at a significant 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
EMC 14.02 Peers 15.09   EMC 0.57 Peers 1.05

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EMC 2.68 Peers 5.16   EMC -0.81 Peers 30.59

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 2.52 Peers 3.16   EMC 6.65 Peers 5.64

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

EMC has a sales growth rate that exceeds its peers.

 

 

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