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Pepco Holdings Inc
POM : NYSE : Utilities

$21.34 | %
Today's Range: 21.31 - 21.85
Avg. Daily Volume: 2,234,200
04/17/14 - 4:02 PM ET

Financial Analysis


PEPCO HOLDINGS INC's gross profit margin for the fourth quarter of its fiscal year 2013 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. PEPCO HOLDINGS INC has very weak liquidity. Currently, the Quick Ratio is 0.38 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.94% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q4 FY13 Q4 FY12
Net Sales ($mil)1091.01056.0
EBITDA ($mil)280.0220.0
EBIT ($mil)159.0109.0
Net Income ($mil)58.043.0


Balance Sheet Q4 FY13 Q4 FY12
Cash & Equiv. ($mil)36.035.0
Total Assets ($mil)14848.015776.0
Total Debt ($mil)5357.05528.0
Equity ($mil)4315.04446.0


Profitability Q4 FY13 Q4 FY12
Gross Profit Margin25.6620.83
EBITDA Margin25.6620.83
Operating Margin14.5710.32
Sales Turnover0.310.29
Return on Assets-1.421.8
Return on Equity2.544.9
Debt Q4 FY13 Q4 FY12
Current Ratio0.60.49
Debt/Capital0.550.55
Interest Expense68.066.0
Interest Coverage2.341.65


Share Data Q4 FY13 Q4 FY12
Shares outstanding (mil)250.33230.02
Div / share0.270.27
EPS0.230.15
Book value / share17.2419.33
Institutional Own % n/a n/a
Avg Daily Volume2199494.01924755.0

Valuation


BUY. PEPCO HOLDINGS INC's P/E ratio indicates a significant premium compared to an average of 37.51 for the Electric Utilities industry and a significant premium compared to the S&P 500 average of 18.29. For additional comparison, its price-to-book ratio of 1.21 indicates a discount versus the S&P 500 average of 2.52 and a discount versus the industry average of 1.52. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
POM 61.18 Peers 37.51   POM 10.48 Peers 6.58

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

POM 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.

POM 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
POM 16.00 Peers 14.72   POM 0.36 Peers 1.67

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

POM 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.

POM 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
POM 1.21 Peers 1.52   POM -64.22 Peers 7.66

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.

POM is trading at a discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, POM 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
POM 1.12 Peers 1.71   POM 0.88 Peers 6.20

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.

POM 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.

POM significantly trails its peers on the basis of sales growth

 

 

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