LEGG MASON INC's gross profit margin for the first quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. LEGG MASON INC is extremely liquid. Currently, the Quick Ratio is 2.81 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.76% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||708.65||693.88|
|Net Income ($mil)||94.55||72.19|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||1023.15||1816.4|
|Total Assets ($mil)||6829.39||7447.93|
|Total Debt ($mil)||1057.12||1698.85|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||19.77||21.23|
|Return on Assets||3.79||4.15|
|Return on Equity||5.73||6.57|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||109.71||116.11|
|Div / share||0.2||0.16|
|Book value / share||41.22||40.47|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1154732.0||844780.0|
BUY. The current P/E ratio indicates a premium compared to an average of 18.53 for the Capital Markets industry and a value on par with the S&P 500 average of 20.51. Conducting a second comparison, its price-to-book ratio of 1.14 indicates a significant discount versus the S&P 500 average of 2.73 and a discount versus the industry average of 2.07. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount.
|LM 20.70||Peers 18.53||LM 9.10||Peers 15.75|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
LM is trading at a 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.
LM is trading at a significant discount to its peers.
|LM 12.48||Peers 14.90||LM 0.36||Peers 1.55|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
LM 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.
LM trades at a significant discount to its peers.
|LM 1.14||Peers 2.07||LM -10.94||Peers 255.74|
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.
LM 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, LM is expected to significantly trail its peers on the basis of its earnings growth rate.
|LM 1.83||Peers 3.36||LM 2.41||Peers 7.64|
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.
LM is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
LM significantly trails its peers on the basis of sales growth
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