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Precision Castparts Corp
PCP : NYSE : Industrial Goods
$233.03 1.62 | 0.70%
Today's Range: 231.25 - 234.64
Avg. Daily Volume: 843,800
07/30/14 - 4:08 PM ET

Financial Analysis


PRECISION CASTPARTS CORP's gross profit margin for the first quarter of its fiscal year 2014 has increased 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.

During the same period, stockholders' equity ("net worth") has increased by 15.76% from the same quarter last year.

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Income Statement Q1 FY14 Q1 FY13
Net Sales ($mil)2528.02367.0
EBITDA ($mil)815.0714.0
EBIT ($mil)736.0644.0
Net Income ($mil)483.0436.0


Balance Sheet Q1 FY14 Q1 FY13
Cash & Equiv. ($mil)373.0293.0
Total Assets ($mil)0.016841.0
Total Debt ($mil)0.03385.0
Equity ($mil)11789.010184.0


Profitability Q1 FY14 Q1 FY13
Gross Profit Margin38.4936.63
EBITDA Margin32.2330.16
Operating Margin29.1127.21
Sales Turnover0.00.52
Return on Assets0.09.03
Return on Equity15.4314.83
Debt Q1 FY14 Q1 FY13
Current Ratio0.02.9
Debt/Capital0.00.25
Interest Expense17.020.0
Interest Coverage43.2932.2


Share Data Q1 FY14 Q1 FY13
Shares outstanding (mil)145.09145.54
Div / share0.030.03
EPS3.322.88
Book value / share81.2669.98
Institutional Own % n/a n/a
Avg Daily Volume776299.0691103.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 18.89 for the Aerospace & Defense industry and a value on par with the S&P 500 average of 19.71. To use another comparison, its price-to-book ratio of 2.91 indicates valuation on par with the S&P 500 average of 2.73 and a significant discount versus the industry average of 4.46. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, PRECISION CASTPARTS 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
PCP 18.99 Peers 18.89   PCP NA Peers 13.79

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

PCP is trading at a valuation on par with its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
PCP 14.72 Peers 16.66   PCP 1.15 Peers 1.26

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PCP 2.91 Peers 4.46   PCP 20.89 Peers 66.28

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PCP 3.51 Peers 1.57   PCP 11.58 Peers 3.55

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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