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TRW Automotive Holdings Corp
TRW : NYSE : Consumer Goods
$104.90 0.00 | 0.00%
Today's Range: 104.84 - 104.99
Avg. Daily Volume: 985,100
03/30/15 - 4:03 PM ET

Financial Analysis


TRW AUTOMOTIVE HOLDINGS CORP's gross profit margin for the fourth quarter of its fiscal year 2014 has increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. TRW AUTOMOTIVE HOLDINGS CORP has weak liquidity. Currently, the Quick Ratio is 0.80 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 decreased by 8.39% 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 Q4 FY14 Q4 FY13
Net Sales ($mil)4348.04496.0
EBITDA ($mil)471.0448.0
EBIT ($mil)364.0336.0
Net Income ($mil)-360.0363.0


Balance Sheet Q4 FY14 Q4 FY13
Cash & Equiv. ($mil)1031.01729.0
Total Assets ($mil)11294.012252.0
Total Debt ($mil)1578.02114.0
Equity ($mil)3842.04194.0


Profitability Q4 FY14 Q4 FY13
Gross Profit Margin14.5113.61
EBITDA Margin10.839.96
Operating Margin8.377.47
Sales Turnover1.551.42
Return on Assets2.597.91
Return on Equity7.6223.12
Debt Q4 FY14 Q4 FY13
Current Ratio1.171.18
Debt/Capital0.290.34
Interest Expense27.035.0
Interest Coverage13.489.6


Share Data Q4 FY14 Q4 FY13
Shares outstanding (mil)114.55114.3
Div / share0.00.0
EPS-3.223.0
Book value / share33.5436.69
Institutional Own % n/a n/a
Avg Daily Volume977201.01120968.0

Valuation


BUY. TRW AUTOMOTIVE HOLDINGS CORP's P/E ratio indicates a significant premium compared to an average of 23.04 for the Auto Components industry and a significant premium compared to the S&P 500 average of 19.41. To use another comparison, its price-to-book ratio of 3.13 indicates a premium versus the S&P 500 average of 2.74 and a discount versus the industry average of 4.08. The current price-to-sales ratio is well below the S&P 500 average and is also below 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
TRW 44.80 Peers 23.04   TRW 12.72 Peers 12.32

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

TRW is trading at a significant premium 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TRW 11.81 Peers 15.74   TRW 0.21 Peers 0.71

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

TRW is trading at a discount 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.

TRW 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
TRW 3.13 Peers 4.08   TRW -70.31 Peers 27.08

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TRW 0.68 Peers 0.97   TRW 0.59 Peers 5.47

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 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.

TRW significantly trails its peers on the basis of sales growth

 

 

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