WABCO HOLDINGS INC's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged 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. WABCO HOLDINGS INC is extremely liquid. Currently, the Quick Ratio is 2.38 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 24.12% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||643.6||707.3|
|Net Income ($mil)||38.8||82.0|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||589.2||388.0|
|Total Assets ($mil)||2598.5||2458.1|
|Total Debt ($mil)||501.5||281.6|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||34.82||34.84|
|Return on Assets||9.29||26.14|
|Return on Equity||31.13||62.84|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||57.35||58.86|
|Div / share||0.0||0.0|
|Book value / share||13.53||17.37|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||549269.0||435187.0|
HOLD. The current P/E ratio indicates a premium compared to an average of 18.15 for the Machinery industry and a value on par with the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 6.69 indicates a significant premium versus the S&P 500 average of 2.51 and a significant premium versus the industry average of 3.22. The price-to-sales ratio is above the S&P 500 average and well above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, WABCO HOLDINGS INC proves to trade at a premium to investment alternatives within the industry.
|WBC 22.01||Peers 18.15||WBC 13.59||Peers 11.17|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
WBC is trading at a premium to its peers.
Premium. 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.
WBC is trading at a premium to its peers.
|WBC 15.08||Peers 16.17||WBC 1.43||Peers 4.22|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
WBC 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.
WBC trades at a significant discount to its peers.
|WBC 6.69||Peers 3.22||WBC -60.37||Peers -14.18|
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.
WBC 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, WBC is expected to significantly trail its peers on the basis of its earnings growth rate.
|WBC 1.97||Peers 1.35||WBC -8.86||Peers -5.74|
Premium. 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.
WBC is trading at a significant premium to its industry.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
WBC significantly trails its peers on the basis of sales growth
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.