PRECISION CASTPARTS CORP'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. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. PRECISION CASTPARTS CORP has weak liquidity. Currently, the Quick Ratio is 0.91 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 increased by 6.81% 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 FY14||Q3 FY13|
|Net Sales ($mil)||2459.0||2338.0|
|Net Income ($mil)||445.0||433.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||430.0||337.0|
|Total Assets ($mil)||19651.0||18332.0|
|Total Debt ($mil)||4146.0||3621.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||37.13||37.68|
|Return on Assets||9.56||9.31|
|Return on Equity||15.89||15.28|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||141.77||145.23|
|Div / share||0.03||0.03|
|Book value / share||83.14||75.98|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1159506.0||1335539.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 20.05 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 20.38. To use another comparison, its price-to-book ratio of 2.49 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 9.15. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, PRECISION CASTPARTS CORP proves to trade at a discount to investment alternatives within the industry.
|PCP 16.00||Peers 20.05||PCP 17.34||Peers 15.31|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
PCP is trading at a discount 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.
PCP is trading at a premium to its peers.
|PCP 15.60||Peers 17.33||PCP 3.31||Peers 2.89|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
PCP is trading at a valuation on par with 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.
PCP trades at a premium to its peers.
|PCP 2.49||Peers 9.15||PCP 12.34||Peers 16.71|
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.
PCP 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, PCP is expected to significantly trail its peers on the basis of its earnings growth rate.
|PCP 2.92||Peers 1.61||PCP 6.13||Peers 2.57|
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.
PCP is trading at a significant premium to its industry.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
PCP has a sales growth rate that significantly exceeds its peers.
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