TIME WARNER CABLE INC's gross profit margin for the fourth quarter of its fiscal year 2014 has significantly decreased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. TIME WARNER CABLE INC has very weak liquidity. Currently, the Quick Ratio is 0.37 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 15.41% 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||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||5790.0||5577.0|
|Net Income ($mil)||554.0||540.0|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||707.0||525.0|
|Total Assets ($mil)||48501.0||48273.0|
|Total Debt ($mil)||23718.0||25052.0|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||36.96||53.77|
|Return on Assets||4.18||4.04|
|Return on Equity||25.34||28.14|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||280.8||277.9|
|Div / share||0.75||0.65|
|Book value / share||28.54||24.98|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2008179.0||2890193.0|
BUY. TIME WARNER CABLE INC's P/E ratio indicates a discount compared to an average of 21.59 for the Media industry and a value on par with the S&P 500 average of 19.92. For additional comparison, its price-to-book ratio of 5.34 indicates a significant premium versus the S&P 500 average of 2.81 and a discount versus the industry average of 6.42. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, TIME WARNER CABLE INC proves to trade at a discount to investment alternatives within the industry.
|TWC 21.26||Peers 21.59||TWC 6.74||Peers 40.80|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
TWC is trading at a valuation on par with 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 17.27||Peers 31.34||TWC 1.61||Peers 0.96|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
TWC is trading at a significant discount to its peers.
Premium. 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 trades at a significant premium to its peers.
|TWC 5.34||Peers 6.42||TWC 6.85||Peers 57.59|
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.
TWC 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, TWC is expected to significantly trail its peers on the basis of its earnings growth rate.
|TWC 1.88||Peers 4.25||TWC 3.12||Peers 10.23|
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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