VALSPAR CORP's gross profit margin for the third quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. VALSPAR CORP has weak liquidity. Currently, the Quick Ratio is 0.75 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 16.25% 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||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||1149.13||1229.3|
|Net Income ($mil)||102.86||97.83|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||344.28||149.63|
|Total Assets ($mil)||4578.02||4179.8|
|Total Debt ($mil)||2339.21||1635.98|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||38.13||35.92|
|Return on Assets||8.85||7.19|
|Return on Equity||45.82||28.49|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||80.57||83.03|
|Div / share||0.3||0.26|
|Book value / share||10.97||12.72|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||543484.0||582027.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 24.69 for the Chemicals industry and a discount compared to the S&P 500 average of 20.03. For additional comparison, its price-to-book ratio of 6.85 indicates a significant premium versus the S&P 500 average of 2.67 and a significant premium versus the industry average of 5.17. 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 15.47||Peers 24.69||VAL NA||Peers 29.65|
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 14.46||Peers 17.16||VAL 1.05||Peers 3.00|
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.
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 6.85||Peers 5.17||VAL 40.46||Peers -5.22|
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 1.35||Peers 2.07||VAL 0.08||Peers 0.99|
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.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
VAL significantly trails its peers on the basis of sales growth
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