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WGL Holdings Inc
WGL : NYSE : Utilities
$66.87 -0.65 | -0.96%
Today's Range: 66.51 - 68.39
Avg. Daily Volume: 280,300
02/12/16 - 4:00 PM ET

Financial Analysis


WGL HOLDINGS INC's gross profit margin for the first quarter of its fiscal year 2016 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. WGL HOLDINGS INC has very weak liquidity. Currently, the Quick Ratio is 0.39 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.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.65% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)613.38749.24
EBITDA ($mil)148.92151.2
EBIT ($mil)117.51121.84
Net Income ($mil)68.564.22


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)15.787.39
Total Assets ($mil)5500.265148.09
Total Debt ($mil)945.581345.61
Equity ($mil)1317.281270.82


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin24.2820.18
EBITDA Margin24.2720.18
Operating Margin19.1616.26
Sales Turnover0.460.55
Return on Assets2.482.96
Return on Equity10.2811.89
Debt Q1 FY16 Q1 FY15
Current Ratio0.781.0
Debt/Capital0.420.51
Interest Expense12.7612.31
Interest Coverage9.219.9


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)49.8349.71
Div / share0.460.44
EPS1.361.28
Book value / share26.4325.57
Institutional Own % n/a n/a
Avg Daily Volume275931.0281583.0

Valuation


BUY. WGL HOLDINGS INC's P/E ratio indicates a premium compared to an average of 22.97 for the Gas Utilities industry and a premium compared to the S&P 500 average of 20.44. To use another comparison, its price-to-book ratio of 2.53 indicates valuation on par with the S&P 500 average of 2.43 and a discount versus the industry average of 2.76. The price-to-sales ratio is below the S&P 500 average and is well below 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 24.78 Peers 22.97   WGL NA Peers 7.54

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

WGL is trading at a valuation on par with 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WGL 20.27 Peers 20.62   WGL 1.38 Peers 8.06

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.

 

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.

WGL trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WGL 2.53 Peers 2.76   WGL -9.10 Peers 37.15

Average. 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 valuation on par with 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 1.32 Peers 1.87   WGL -11.44 Peers -13.68

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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