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TRW Automotive Holdings Corp
TRW : NYSE : Consumer Goods

$82.33 | %
Today's Range: 80.86 - 82.67
Avg. Daily Volume: 1,054,300
04/17/14 - 4:01 PM ET

Financial Analysis


TRW AUTOMOTIVE HOLDINGS CORP's gross profit margin for the fourth quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. TRW AUTOMOTIVE HOLDINGS CORP has weak liquidity. Currently, the Quick Ratio is 0.88 which 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 increased by 17.21% 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 FY13 Q4 FY12
Net Sales ($mil)4496.04032.0
EBITDA ($mil)448.0382.0
EBIT ($mil)336.0280.0
Net Income ($mil)363.0419.0


Balance Sheet Q4 FY13 Q4 FY12
Cash & Equiv. ($mil)1729.01223.0
Total Assets ($mil)12252.010857.0
Total Debt ($mil)2114.01462.0
Equity ($mil)4194.03578.0


Profitability Q4 FY13 Q4 FY12
Gross Profit Margin13.6113.0
EBITDA Margin9.969.47
Operating Margin7.476.94
Sales Turnover1.421.51
Return on Assets7.919.28
Return on Equity23.1228.17
Debt Q4 FY13 Q4 FY12
Current Ratio1.181.22
Debt/Capital0.340.29
Interest Expense35.029.0
Interest Coverage9.69.66


Share Data Q4 FY13 Q4 FY12
Shares outstanding (mil)114.3119.37
Div / share0.00.0
EPS3.03.26
Book value / share36.6929.97
Institutional Own % n/a n/a
Avg Daily Volume1049576.0742376.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 18.83 for the Auto Components industry and a discount compared to the S&P 500 average of 18.59. For additional comparison, its price-to-book ratio of 2.22 indicates a discount versus the S&P 500 average of 2.56 and a discount versus the industry average of 3.68. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TRW 10.33 Peers 18.83   TRW 8.26 Peers 12.43

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.

 

Discount. 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 significant discount 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 9.45 Peers 15.19   TRW NM Peers 0.61

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 significant discount to 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TRW 2.22 Peers 3.68   TRW 0.51 Peers 35.35

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 significant 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 0.53 Peers 1.00   TRW 6.02 Peers 7.17

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 trails its peers on the basis of sales growth

 

 

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