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 ($mil)||4348.0||4496.0|
|Net Income ($mil)||-360.0||363.0|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||1031.0||1729.0|
|Total Assets ($mil)||11294.0||12252.0|
|Total Debt ($mil)||1578.0||2114.0|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||14.51||13.61|
|Return on Assets||2.59||7.91|
|Return on Equity||7.62||23.12|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||114.55||114.3|
|Div / share||0.0||0.0|
|Book value / share||33.54||36.69|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||992250.0||773694.0|
BUY. TRW AUTOMOTIVE HOLDINGS CORP's P/E ratio indicates a significant premium compared to an average of 24.36 for the Auto Components industry and a significant premium compared to the S&P 500 average of 20.57. To use another comparison, its price-to-book ratio of 3.13 indicates valuation on par with the S&P 500 average of 2.84 and a discount versus the industry average of 4.31. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount.
|TRW 44.84||Peers 24.36||TRW 12.73||Peers 12.91|
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.
|TRW 12.13||Peers 16.57||TRW 0.21||Peers 0.75|
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.
|TRW 3.13||Peers 4.31||TRW -70.31||Peers 27.43|
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.
|TRW 0.69||Peers 1.01||TRW 0.59||Peers 5.41|
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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