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XL Group PLC
XL : NYSE : Financial

$31.50 -0.12 | -0.38%
Today's Range: 31.26 - 31.60
Avg. Daily Volume: 2,368,300
05/24/13 - 4:01 PM ET

Financial Analysis


XL GROUP PLC's gross profit margin for the first quarter of its fiscal year 2013 has significantly increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has increased by 8.00% from the same quarter last year.



Income Statement Q1 FY13 Q1 FY12
Net Sales ($mil)1830.191733.02
EBITDA ($mil)385.17264.95
EBIT ($mil)372.06251.09
Net Income ($mil)350.79176.63


Balance Sheet Q1 FY13 Q1 FY12
Cash & Equiv. ($mil)4877.374656.56
Total Assets ($mil)45522.2645099.01
Total Debt ($mil)1672.211674.65
Equity ($mil)10487.359710.02


Profitability Q1 FY13 Q1 FY12
Gross Profit Margin21.0515.29
EBITDA Margin21.0415.28
Operating Margin20.3314.49
Sales Turnover0.160.15
Return on Assets1.81-0.15
Return on Equity7.86-0.72
Debt Q1 FY13 Q1 FY12
Current Ratio0.00.0
Debt/Capital0.140.15
Interest Expense38.739.3
Interest Coverage9.616.39


Share Data Q1 FY13 Q1 FY12
Shares outstanding (mil)291.83311.67
Div / share0.140.11
EPS1.170.56
Book value / share35.9431.16
Institutional Own % n/a n/a
Avg Daily Volume2377124.02079256.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 5283.02 for the Insurance industry and a discount compared to the S&P 500 average of 19.08. For additional comparison, its price-to-book ratio of 0.91 indicates a significant discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 426.36. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, XL GROUP PLC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
XL 12.05 Peers 5283.02   XL 9.22 Peers 4015.57

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

XL is trading at a significant 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.

XL 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
XL 10.83 Peers 10.90   XL 0.31 Peers 1.00

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

XL 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.

XL 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
XL 0.91 Peers 426.36   XL 1278.26 Peers 76.48

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.

 

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

XL is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
XL 1.31 Peers 500.06   XL 6.65 Peers 13.94

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.

XL 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.

XL significantly trails its peers on the basis of sales growth

 

 

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