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WGL Holdings Inc
WGL : NYSE : Utilities
$45.81 | %
Today's Range: 45.43 - 46.03
Avg. Daily Volume: 315,700
10/24/14 - 4:01 PM ET

Financial Analysis


WGL HOLDINGS INC's gross profit margin for the third quarter of its fiscal year 2014 has significantly increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. WGL HOLDINGS INC has very weak liquidity. Currently, the Quick Ratio is 0.38 which clearly 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 remained virtually unchanged only decreasing by 4.30% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)467.5478.12
EBITDA ($mil)20.0313.58
EBIT ($mil)-7.59-10.81
Net Income ($mil)-11.61-9.69


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)12.927.83
Total Assets ($mil)4560.684188.72
Total Debt ($mil)866.73754.08
Equity ($mil)1314.241373.31


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin4.292.84
EBITDA Margin4.282.84
Operating Margin-1.62-2.26
Sales Turnover0.60.59
Return on Assets0.383.36
Return on Equity1.2310.16
Debt Q3 FY14 Q3 FY13
Current Ratio0.971.1
Debt/Capital0.40.35
Interest Expense9.58.89
Interest Coverage-0.8-1.22


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)51.9451.74
Div / share0.440.42
EPS-0.23-0.19
Book value / share25.326.54
Institutional Own % n/a n/a
Avg Daily Volume315180.0271446.0

Valuation


BUY. WGL HOLDINGS INC's P/E ratio indicates a significant premium compared to an average of 27.09 for the Gas Utilities industry and a significant premium compared to the S&P 500 average of 18.06. For additional comparison, its price-to-book ratio of 1.76 indicates a discount versus the S&P 500 average of 2.49 and a discount versus the industry average of 2.06. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WGL 143.71 Peers 27.09   WGL 6.19 Peers 8.11

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

WGL is trading at a significant premium 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.

WGL is trading at a 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
WGL 17.00 Peers 17.35   WGL 2.23 Peers 1.01

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

WGL 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.

WGL trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WGL 1.76 Peers 2.06   WGL -88.52 Peers 11.80

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.

WGL is trading at a discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, WGL 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
WGL 0.85 Peers 1.46   WGL 10.33 Peers 18.92

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.

WGL 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.

WGL significantly trails its peers on the basis of sales growth

 

 

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