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Wabco Holdings Inc
WBC : NYSE : Consumer Goods
$106.06 | %
Today's Range: 104.93 - 106.31
Avg. Daily Volume: 447,400
07/11/14 - 4:04 PM ET

Financial Analysis


WABCO HOLDINGS INC's gross profit margin for the first quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. WABCO HOLDINGS INC has strong liquidity. Currently, the Quick Ratio is 1.67 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 60.32% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY14 Q1 FY13
Net Sales ($mil)729.5644.7
EBITDA ($mil)116.9111.4
EBIT ($mil)92.590.1
Net Income ($mil)69.473.7


Balance Sheet Q1 FY14 Q1 FY13
Cash & Equiv. ($mil)423.4200.4
Total Assets ($mil)2528.21790.9
Total Debt ($mil)146.263.6
Equity ($mil)1133.8707.2


Profitability Q1 FY14 Q1 FY13
Gross Profit Margin33.6434.42
EBITDA Margin16.0217.27
Operating Margin12.6813.98
Sales Turnover1.111.38
Return on Assets25.6615.99
Return on Equity57.2340.51
Debt Q1 FY14 Q1 FY13
Current Ratio2.231.81
Debt/Capital0.110.08
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY14 Q1 FY13
Shares outstanding (mil)60.7362.79
Div / share0.00.0
EPS1.121.15
Book value / share18.6711.26
Institutional Own % n/a n/a
Avg Daily Volume448057.0458364.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 23.00 for the Machinery industry and a discount compared to the S&P 500 average of 19.71. To use another comparison, its price-to-book ratio of 5.87 indicates a significant premium versus the S&P 500 average of 2.72 and a significant discount versus the industry average of 7.94. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, WABCO HOLDINGS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WBC 10.59 Peers 23.00   WBC 10.34 Peers 18.98

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

WBC is trading at a significant discount to 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.

WBC is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WBC 15.83 Peers 19.16   WBC NM Peers 1.76

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WBC 5.87 Peers 7.94   WBC 133.93 Peers 298.73

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.

WBC is trading at a significant discount 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WBC 2.37 Peers 1.73   WBC 13.81 Peers 3.49

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

WBC has a sales growth rate that significantly exceeds its peers.

 

 

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