Dr Pepper Snapple Group Inc

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DPS : NYSE : Consumer Goods
$91.38 up 0.12 | 0.13%
Today's Range: 91.0901 - 91.575
Avg. Daily Volume: 1326500.0
07/21/17 - 4:03 PM ET

Financial Analysis


DR PEPPER SNAPPLE GROUP INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. DR PEPPER SNAPPLE GROUP INC has weak liquidity. Currently, the Quick Ratio is 0.72 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.32% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)1510.01487.0
EBITDA ($mil)325.0365.0
EBIT ($mil)276.0317.0
Net Income ($mil)177.0182.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)160.0275.0
Total Assets ($mil)10008.08364.0
Total Debt ($mil)4477.02915.0
Equity ($mil)2193.02102.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin61.3961.0
EBITDA Margin21.5224.54
Operating Margin18.2821.32
Sales Turnover0.650.76
Return on Assets8.419.43
Return on Equity38.3937.53
Debt Q1 FY17 Q1 FY16
Current Ratio1.091.09
Debt/Capital0.670.58
Interest Expense40.033.0
Interest Coverage6.99.61


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)183.8186.69
Div / share0.580.53
EPS0.960.96
Book value / share11.9311.26
Institutional Own % n/a n/a
Avg Daily Volume1312580.01120164.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 38.88 for the Beverages industry and a discount compared to the S&P 500 average of 24.41. For additional comparison, its price-to-book ratio of 7.50 indicates a significant premium versus the S&P 500 average of 3.04 and a discount versus the industry average of 8.13. 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 19.70 Peers 38.88   DPS 19.00 Peers 20.53

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.

 

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.

DPS is trading at a valuation on par 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 17.82 Peers 24.31   DPS 9.43 Peers 1.47

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 significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DPS 7.50 Peers 8.13   DPS 10.19 Peers 3.22

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 2.54 Peers 4.42   DPS 2.29 Peers 8.70

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

DPS significantly trails its peers on the basis of sales growth

 

 

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