XL GROUP PLC's gross profit margin for the second 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.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.43% from the same quarter last year.
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|Income Statement||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||1805.82||1841.67|
|Net Income ($mil)||-279.26||272.7|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||5651.38||4852.81|
|Total Assets ($mil)||47848.92||45105.14|
|Total Debt ($mil)||2262.45||1671.63|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||21.55||14.27|
|Return on Assets||0.86||1.94|
|Return on Equity||4.11||8.86|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||268.31||287.45|
|Div / share||0.16||0.14|
|Book value / share||37.4||34.42|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1682266.0||1710157.0|
BUY. The current P/E ratio indicates a significant premium compared to an average of 13.37 for the Insurance industry and a premium compared to the S&P 500 average of 19.69. Conducting a second comparison, its price-to-book ratio of 0.89 indicates a significant discount versus the S&P 500 average of 2.72 and a discount versus the industry average of 1.38. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average. The valuation analysis reveals that, XL GROUP PLC seems to be trading at a premium to investment alternatives within the industry.
|XL 23.88||Peers 13.37||XL 11.65||Peers 12.02|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
XL is trading at a significant premium to its peers.
Average. 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.
XL is trading at a valuation on par to its peers.
|XL 10.29||Peers 12.94||XL NM||Peers 0.78|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
XL is trading at a discount to 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.
XL's negative PEG ratio makes this valuation measure meaningless.
|XL 0.89||Peers 1.38||XL -52.22||Peers 184.48|
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.
XL 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, XL is expected to significantly trail its peers on the basis of its earnings growth rate.
|XL 1.23||Peers 1.14||XL -1.03||Peers 11.37|
Average. 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.
XL is trading at a valuation on par with its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
XL significantly trails its peers on the basis of sales growth
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