Dr Pepper Snapple Group Inc

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DPS : NYSE : Consumer Goods
$88.55 up 1.2 | 1.37%
Today's Range: 87.0 - 88.58
Avg. Daily Volume: 1427000.0
12/07/16 - 4:03 PM ET

Financial Analysis


DR PEPPER SNAPPLE GROUP INC's gross profit margin for the third 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 0.85 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 remained virtually unchanged only decreasing by 3.09% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)1680.01630.0
EBITDA ($mil)417.0388.0
EBIT ($mil)370.0340.0
Net Income ($mil)240.0202.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)620.0207.0
Total Assets ($mil)8673.08225.0
Total Debt ($mil)3324.02635.0
Equity ($mil)2129.02197.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin60.7160.06
EBITDA Margin24.8223.8
Operating Margin22.0220.86
Sales Turnover0.740.76
Return on Assets9.998.86
Return on Equity40.7233.18
Debt Q3 FY16 Q3 FY15
Current Ratio1.080.77
Debt/Capital0.610.55
Interest Expense33.028.0
Interest Coverage11.2112.14


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)183.79189.11
Div / share0.530.48
EPS1.291.05
Book value / share11.5811.62
Institutional Own % n/a n/a
Avg Daily Volume1297708.01065415.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 30.75 for the Beverages industry and a discount compared to the S&P 500 average of 25.16. For additional comparison, its price-to-book ratio of 7.17 indicates a significant premium versus the S&P 500 average of 2.79 and a discount versus the industry average of 7.22. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, DR PEPPER SNAPPLE GROUP INC 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
DPS 18.01 Peers 30.75   DPS 16.07 Peers 20.26

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 17.41 Peers 22.27   DPS 1.63 Peers 1.43

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 7.17 Peers 7.22   DPS 22.28 Peers -2.35

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 2.38 Peers 4.13   DPS 2.61 Peers -0.87

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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