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Washington Post Company
WPO : NYSE : Services

$467.47 -1.03 | -0.22%
Today's Range: 464.00 - 467.52
Avg. Daily Volume: 21,800
05/23/13 - 9:39 AM ET

Financial Analysis


WASHINGTON POST's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. WASHINGTON POST has average liquidity. Currently, the Quick Ratio is 1.36 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.



Income Statement Q1 FY13 Q1 FY12
Net Sales ($mil)959.11955.5
EBITDA ($mil)92.5787.1
EBIT ($mil)23.0621.3
Net Income ($mil)5.1631.5


Balance Sheet Q1 FY13 Q1 FY12
Cash & Equiv. ($mil)808.13721.2
Total Assets ($mil)4876.514939.82
Total Debt ($mil)456.9456.38
Equity ($mil)2626.362637.92


Profitability Q1 FY13 Q1 FY12
Gross Profit Margin52.8751.83
EBITDA Margin9.659.11
Operating Margin2.42.23
Sales Turnover0.820.82
Return on Assets2.162.69
Return on Equity1.645.31
Debt Q1 FY13 Q1 FY12
Current Ratio1.471.29
Debt/Capital0.150.15
Interest Expense8.969.16
Interest Coverage2.572.32


Share Data Q1 FY13 Q1 FY12
Shares outstanding (mil)7.427.62
Div / share0.02.45
EPS0.821.72
Book value / share353.86346.32
Institutional Own % n/a n/a
Avg Daily Volume22532.032775.0

Valuation


BUY. WASHINGTON POST's P/E ratio indicates a significant premium compared to an average of 19.25 for the Media industry and a significant premium compared to the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 1.28 indicates a discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 5.05. 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
WPO 85.80 Peers 19.25   WPO 7.18 Peers 13.61

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

WPO 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.

WPO 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
WPO 17.80 Peers 20.77   WPO 0.30 Peers 0.80

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

WPO 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.

WPO 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
WPO 1.28 Peers 5.05   WPO -70.57 Peers 99.30

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.

WPO 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, WPO 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
WPO 0.84 Peers 2.69   WPO -1.01 Peers 4.76

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.

WPO 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.

WPO significantly trails its peers on the basis of sales growth

 

 

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