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MeadWestvaco Corp
MWV : NYSE : Consumer Goods
$51.40 0.02 | 0.04%
Today's Range: 51.13 - 51.50
Avg. Daily Volume: 1,244,000
05/28/15 - 3:59 PM ET

Financial Analysis


MEADWESTVACO CORP's gross profit margin for the first quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. MEADWESTVACO CORP has average liquidity. Currently, the Quick Ratio is 1.01 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.

During the same period, stockholders' equity ("net worth") has decreased by 10.57% 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 Q1 FY15 Q1 FY14
Net Sales ($mil)1282.01322.0
EBITDA ($mil)165.0191.0
EBIT ($mil)83.098.0
Net Income ($mil)33.031.0


Balance Sheet Q1 FY15 Q1 FY14
Cash & Equiv. ($mil)262.0332.0
Total Assets ($mil)9133.09755.0
Total Debt ($mil)1884.01934.0
Equity ($mil)3130.03500.0


Profitability Q1 FY15 Q1 FY14
Gross Profit Margin25.2726.02
EBITDA Margin12.8714.44
Operating Margin6.477.41
Sales Turnover0.610.55
Return on Assets2.98.8
Return on Equity8.3710.08
Debt Q1 FY15 Q1 FY14
Current Ratio1.991.86
Debt/Capital0.380.36
Interest Expense52.053.0
Interest Coverage1.61.85


Share Data Q1 FY15 Q1 FY14
Shares outstanding (mil)167.81167.76
Div / share0.251.25
EPS0.180.18
Book value / share18.6520.86
Institutional Own % n/a n/a
Avg Daily Volume1198113.01209683.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 28.19 for the Containers & Packaging industry and a significant premium compared to the S&P 500 average of 20.83. To use another comparison, its price-to-book ratio of 2.74 indicates valuation on par with the S&P 500 average of 2.88 and a significant discount versus the industry average of 5.21. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. The valuation analysis reveals that, MEADWESTVACO CORP seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MWV 33.64 Peers 28.19   MWV 17.93 Peers 10.49

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

MWV is trading at a 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.

MWV is trading at a significant 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
MWV 23.14 Peers 19.55   MWV 1.91 Peers 1.23

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

MWV is trading at a significant premium to its peers.

 

Premium. 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.

MWV trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MWV 2.74 Peers 5.21   MWV -22.85 Peers -1.83

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.

MWV 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, MWV 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
MWV 1.53 Peers 1.08   MWV 3.53 Peers 3.44

Premium. 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.

MWV is trading at a significant premium to its industry.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

MWV is keeping pace with its peers on the basis of sales growth.

 

 

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