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Precision Castparts Corp
PCP : : Industrial Goods
$234.95 up0.10 | 0.04%
Today's Range: 234.87 - 234.99
Avg. Daily Volume: 1,071,200
01/29/16 - 4:02 PM ET

Financial Analysis


PRECISION CASTPARTS CORP's gross profit margin for the second quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. PRECISION CASTPARTS CORP has average liquidity. Currently, the Quick Ratio is 1.14 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.34% 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 Q2 FY15 Q2 FY14
Net Sales ($mil)2287.02522.0
EBITDA ($mil)632.0783.0
EBIT ($mil)548.0706.0
Net Income ($mil)343.0467.0


Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)632.0404.0
Total Assets ($mil)20189.019562.0
Total Debt ($mil)4998.04320.0
Equity ($mil)11476.011632.0


Profitability Q2 FY15 Q2 FY14
Gross Profit Margin34.9437.27
EBITDA Margin27.6331.04
Operating Margin23.9627.99
Sales Turnover0.480.51
Return on Assets6.549.54
Return on Equity11.6416.0
Debt Q2 FY15 Q2 FY14
Current Ratio3.062.99
Debt/Capital0.30.27
Interest Expense33.017.0
Interest Coverage16.6141.53


Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)137.59142.53
Div / share0.030.03
EPS2.493.24
Book value / share83.4181.61
Institutional Own % n/a n/a
Avg Daily Volume993745.02084396.0

Valuation


BUY. PRECISION CASTPARTS CORP's P/E ratio indicates a premium compared to an average of 19.67 for the Aerospace & Defense industry and a premium compared to the S&P 500 average of 20.88. Conducting a second comparison, its price-to-book ratio of 2.82 indicates a premium versus the S&P 500 average of 2.48 and a significant discount versus the industry average of 7.24. 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 24.70 Peers 19.67   PCP 19.21 Peers 13.44

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

PCP is trading at a significant 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.

PCP 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
PCP 17.06 Peers 16.19   PCP 1.93 Peers 3.14

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

PCP is trading at a premium to 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.

PCP 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
PCP 2.82 Peers 7.24   PCP -25.53 Peers 1.42

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 3.34 Peers 1.55   PCP -2.37 Peers -0.14

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

PCP significantly trails its peers on the basis of sales growth

 

 

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