VALSPAR CORP's gross profit margin for the fourth quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. VALSPAR CORP has weak liquidity. Currently, the Quick Ratio is 0.76 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 decreased by 15.43% 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 FY15||Q4 FY14|
|Net Sales ($mil)||1149.54||1261.38|
|Net Income ($mil)||102.36||108.06|
|Balance Sheet||Q4 FY15||Q4 FY14|
|Cash & Equiv. ($mil)||187.27||131.07|
|Total Assets ($mil)||4318.58||4033.95|
|Total Debt ($mil)||2041.09||1556.39|
|Profitability||Q4 FY15||Q4 FY14|
|Gross Profit Margin||38.82||36.47|
|Return on Assets||9.25||8.56|
|Return on Equity||46.72||34.16|
|Debt||Q4 FY15||Q4 FY14|
|Share Data||Q4 FY15||Q4 FY14|
|Shares outstanding (mil)||78.98||82.21|
|Div / share||0.3||0.26|
|Book value / share||10.83||12.3|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||597269.0||584305.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 21.79 for the Chemicals industry and a discount compared to the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 7.35 indicates a significant premium versus the S&P 500 average of 2.51 and a significant premium versus the industry average of 5.85. 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 16.44||Peers 21.79||VAL 16.40||Peers 15.11|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
VAL is trading at a discount 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.
VAL is trading at a valuation on par to its peers.
|VAL 14.46||Peers 16.92||VAL 20.55||Peers 3.20|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
VAL is trading at a valuation on par with 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.
VAL trades at a significant premium to its peers.
|VAL 7.35||Peers 5.85||VAL 20.39||Peers -56.38|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
VAL is expected to have an earnings growth rate that significantly exceeds its peers.
|VAL 1.43||Peers 1.95||VAL -5.04||Peers -7.76|
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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