TIME WARNER CABLE INC's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. TIME WARNER CABLE INC has very weak liquidity. Currently, the Quick Ratio is 0.36 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 increased by 14.81% 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||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||5926.0||5726.0|
|Net Income ($mil)||463.0||499.0|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||480.0||403.0|
|Total Assets ($mil)||48886.0||48456.0|
|Total Debt ($mil)||23052.0||24580.0|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||34.26||35.87|
|Return on Assets||4.03||4.23|
|Return on Equity||23.2||27.66|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||282.9||279.3|
|Div / share||0.75||0.75|
|Book value / share||30.07||26.53|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1955350.0||4098324.0|
BUY. TIME WARNER CABLE INC's P/E ratio indicates a premium compared to an average of 21.57 for the Media industry and a premium compared to the S&P 500 average of 19.38. Conducting a second comparison, its price-to-book ratio of 6.05 indicates a significant premium versus the S&P 500 average of 2.58 and a premium versus the industry average of 4.59. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, TIME WARNER CABLE INC proves to trade at a premium to investment alternatives within the industry.
|TWC 26.28||Peers 21.57||TWC 7.95||Peers 16.26|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
TWC is trading at a premium 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.
TWC is trading at a significant discount to its peers.
|TWC 23.43||Peers 24.25||TWC NM||Peers 0.88|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
TWC is trading at a premium 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.
TWC's negative PEG ratio makes this valuation measure meaningless.
|TWC 6.05||Peers 4.59||TWC -3.76||Peers -15.57|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
TWC is trading at a significant premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
TWC is expected to have an earnings growth rate that significantly exceeds its peers.
|TWC 2.22||Peers 3.28||TWC 3.58||Peers 13.14|
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.
TWC 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.
TWC significantly trails its peers on the basis of sales growth
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