VALSPAR CORP's gross profit margin for the fourth quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. VALSPAR CORP has weak liquidity. Currently, the Quick Ratio is 0.57 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 9.92% 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 ($mil)||1233.07||1108.3|
|Net Income ($mil)||108.06||63.51|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||131.07||219.7|
|Total Assets ($mil)||4033.95||4025.51|
|Total Debt ($mil)||1556.39||1478.56|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||37.31||35.73|
|Return on Assets||8.56||7.18|
|Return on Equity||34.16||25.76|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||83.03||85.79|
|Div / share||0.26||0.23|
|Book value / share||12.18||13.08|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||436000.0||428436.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 39.84 for the Chemicals industry and a value on par with the S&P 500 average of 20.05. For additional comparison, its price-to-book ratio of 6.82 indicates a significant premium versus the S&P 500 average of 2.77 and a significant premium versus the industry average of 4.77. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. The valuation analysis reveals that, VALSPAR CORP seems to be trading at a discount to investment alternatives within the industry.
|VAL 20.66||Peers 39.84||VAL NA||Peers 15.43|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
VAL is trading at a significant discount to its peers.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|VAL 15.38||Peers 19.64||VAL 1.10||Peers 1.73|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
VAL 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.
VAL trades at a significant discount to its peers.
|VAL 6.82||Peers 4.77||VAL 25.62||Peers 39.06|
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.
VAL is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, VAL is expected to significantly trail its peers on the basis of its earnings growth rate.
|VAL 1.52||Peers 2.34||VAL 10.20||Peers 4.01|
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.
VAL is trading at a significant discount to its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
VAL has a sales growth rate that significantly exceeds its peers.
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