Dr Pepper Snapple Group Inc

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DPS : NYSE : Consumer Goods
$91.31 up 0.59 | 0.65%
Today's Range: 90.60 - 91.65
Avg. Daily Volume: 1,095,400
09/30/16 - 4:01 PM ET

Financial Analysis


DR PEPPER SNAPPLE GROUP INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. DR PEPPER SNAPPLE GROUP INC has weak liquidity. Currently, the Quick Ratio is 0.81 which shows a lack of 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 decreased by 5.30% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)1695.01655.0
EBITDA ($mil)462.0420.0
EBIT ($mil)415.0370.0
Net Income ($mil)260.0220.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)245.0127.0
Total Assets ($mil)8406.08267.0
Total Debt ($mil)2930.02602.0
Equity ($mil)2142.02262.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin61.8360.73
EBITDA Margin27.2525.37
Operating Margin24.4822.36
Sales Turnover0.760.75
Return on Assets9.868.64
Return on Equity38.731.6
Debt Q2 FY16 Q2 FY15
Current Ratio1.130.81
Debt/Capital0.580.54
Interest Expense33.029.0
Interest Coverage12.5812.76


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)185.4190.93
Div / share0.530.48
EPS1.391.14
Book value / share11.5511.85
Institutional Own % n/a n/a
Avg Daily Volume1158459.01176145.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 36.26 for the Beverages industry and a discount compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 7.96 indicates a significant premium versus the S&P 500 average of 2.82 and a premium versus the industry average of 7.40. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, DR PEPPER SNAPPLE GROUP INC seems to be trading 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
DPS 21.05 Peers 36.26   DPS 16.30 Peers 21.06

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

DPS 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.

DPS 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
DPS 19.45 Peers 27.07   DPS 2.04 Peers 1.68

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

DPS is trading at a discount to 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.

DPS trades at a premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DPS 7.96 Peers 7.40   DPS 18.75 Peers -15.39

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.

DPS is trading at a valuation on par with its peers.

 

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

DPS 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
DPS 2.68 Peers 4.76   DPS 2.58 Peers -4.65

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.

DPS is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

DPS has a sales growth rate that significantly exceeds its peers.

 

 

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