Dreamworks Animation SKG Inc

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DWA : NASDAQ : Services
$40.96 up 0.00 | 0.01%
Today's Range: 40.94 - 40.97
Avg. Daily Volume: 1,114,300
08/22/16 - 3:59 PM ET

Financial Analysis


DREAMWORKS ANIMATION 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 grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth.

During the same period, stockholders' equity ("net worth") has increased by 8.60% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)220.93170.78
EBITDA ($mil)8.997.98
EBIT ($mil)3.65-2.67
Net Income ($mil)2.33-38.58


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)75.15130.19
Total Assets ($mil)1974.492011.01
Total Debt ($mil)403.67598.6
Equity ($mil)1168.241075.7


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin47.2447.72
EBITDA Margin4.064.67
Operating Margin1.65-1.57
Sales Turnover0.50.37
Return on Assets2.77-17.13
Return on Equity4.68-32.03
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.260.36
Interest Expense3.597.56
Interest Coverage1.02-0.35


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)86.785.8
Div / share0.00.0
EPS0.03-0.45
Book value / share13.4712.54
Institutional Own % n/a n/a
Avg Daily Volume1158114.02354260.0

Valuation


HOLD. DREAMWORKS ANIMATION INC's P/E ratio indicates a significant premium compared to an average of 23.04 for the Media industry and a significant premium compared to the S&P 500 average of 25.30. To use another comparison, its price-to-book ratio of 3.04 indicates valuation on par with the S&P 500 average of 2.83 and a discount versus the industry average of 3.30. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DWA 65.02 Peers 23.04   DWA NM Peers 11.78

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

DWA is trading at a significant premium to its peers.

 

Neutral. 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.

DWA's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DWA 48.19 Peers 21.18   DWA NM Peers 1.18

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

DWA is trading at a significant premium to its peers.

 

Neutral. 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.

DWA's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DWA 3.04 Peers 3.30   DWA 115.63 Peers 29.72

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.

DWA 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.

DWA 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
DWA 3.59 Peers 6.16   DWA 31.56 Peers 10.01

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.

DWA 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.

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

 

 

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