Dr Pepper Snapple Group Inc

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DPS : NYSE : Consumer Goods
$98.02 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 1,089,000
07/25/16 - 4:02 PM ET

Financial Analysis


DR PEPPER SNAPPLE GROUP INC's gross profit margin for the first 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 0.77 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 5.35% 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 FY16 Q1 FY15
Net Sales ($mil)1487.01451.0
EBITDA ($mil)361.0319.0
EBIT ($mil)313.0270.0
Net Income ($mil)182.0157.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)275.093.0
Total Assets ($mil)8364.08252.0
Total Debt ($mil)2915.02617.0
Equity ($mil)2102.02221.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin61.060.03
EBITDA Margin24.2721.98
Operating Margin21.0518.61
Sales Turnover0.760.75
Return on Assets9.438.54
Return on Equity37.5331.74
Debt Q1 FY16 Q1 FY15
Current Ratio1.090.77
Debt/Capital0.580.54
Interest Expense34.027.0
Interest Coverage9.2110.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)186.69192.34
Div / share0.530.48
EPS0.960.81
Book value / share11.2611.55
Institutional Own % n/a n/a
Avg Daily Volume1101584.01565087.0

Valuation


BUY. DR PEPPER SNAPPLE GROUP INC's P/E ratio indicates a discount compared to an average of 30.50 for the Beverages industry and a value on par with the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 8.67 indicates a significant premium versus the S&P 500 average of 2.81 and a premium versus the industry average of 7.99. 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 23.68 Peers 30.50   DPS 17.12 Peers 22.23

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

DPS is trading at a 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 20.67 Peers 26.78   DPS 2.54 Peers 1.35

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 8.67 Peers 7.99   DPS 14.44 Peers -6.24

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 2.88 Peers 4.70   DPS 2.33 Peers -4.95

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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