TRW AUTOMOTIVE HOLDINGS CORP's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. TRW AUTOMOTIVE HOLDINGS CORP has weak liquidity. Currently, the Quick Ratio is 0.84 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 18.33% 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||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||4593.0||4514.0|
|Net Income ($mil)||265.0||248.0|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||931.0||1214.0|
|Total Assets ($mil)||12433.0||11664.0|
|Total Debt ($mil)||1892.0||1856.0|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||14.76||14.13|
|Return on Assets||8.23||8.5|
|Return on Equity||23.68||27.14|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||110.88||117.48|
|Div / share||0.0||0.0|
|Book value / share||39.0||31.1|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2162075.0||1238896.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 16.40 for the Auto Components industry and a discount compared to the S&P 500 average of 18.06. To use another comparison, its price-to-book ratio of 2.57 indicates valuation on par with the S&P 500 average of 2.49 and a discount versus the industry average of 2.93. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, TRW AUTOMOTIVE HOLDINGS CORP proves to trade at a discount to investment alternatives within the industry.
|TRW 11.71||Peers 16.40||TRW 10.29||Peers 10.98|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
TRW is trading at a significant discount to its peers.
Average. 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.
TRW is trading at a valuation on par to its peers.
|TRW 11.64||Peers 12.88||TRW NM||Peers 0.70|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
TRW is trading at a valuation on par with its peers.
Neutral. 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.
TRW's negative PEG ratio makes this valuation measure meaningless.
|TRW 2.57||Peers 2.93||TRW 9.33||Peers 45.67|
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.
TRW 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, TRW is expected to significantly trail its peers on the basis of its earnings growth rate.
|TRW 0.63||Peers 0.82||TRW 6.09||Peers 9.68|
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.
TRW is trading at a discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
TRW significantly trails its peers on the basis of sales growth
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