WEBMD HEALTH CORP's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. WEBMD HEALTH CORP is extremely liquid. Currently, the Quick Ratio is 5.39 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 85.38% 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.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||143.49||130.94|
|Net Income ($mil)||9.81||3.23|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||699.85||776.1|
|Total Assets ($mil)||1179.1||1246.01|
|Total Debt ($mil)||952.23||700.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||60.7||59.19|
|Return on Assets||3.1||-0.14|
|Return on Equity||66.46||-0.47|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||36.71||44.94|
|Div / share||0.0||0.0|
|Book value / share||1.5||8.38|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||623798.0||563295.0|
HOLD. The current P/E ratio indicates a significant discount compared to an average of 54.27 for the Internet Software & Services industry and a significant premium compared to the S&P 500 average of 19.74. For additional comparison, its price-to-book ratio of 24.49 indicates a significant premium versus the S&P 500 average of 2.73 and a significant premium versus the industry average of 6.54. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, WEBMD HEALTH CORP seems to be trading at a discount to investment alternatives within the industry.
|WBMD 42.71||Peers 54.27||WBMD 12.15||Peers 53.29|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
WBMD is trading at a 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.
WBMD is trading at a significant discount to its peers.
|WBMD 30.36||Peers 35.42||WBMD 0.21||Peers 0.84|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
WBMD is trading at a premium 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.
WBMD trades at a significant discount to its peers.
|WBMD 24.49||Peers 6.54||WBMD 2250.00||Peers 6.78|
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.
WBMD 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.
WBMD is expected to have an earnings growth rate that significantly exceeds its peers.
|WBMD 2.39||Peers 15.25||WBMD 12.40||Peers 44.78|
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.
WBMD 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.
WBMD significantly trails its peers on the basis of sales growth
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