EMC : NYSE : Technology
$28.28 | %
Today's Range: 28.23 - 28.39
Avg. Daily Volume: 12,792,400
07/29/16 - 4:00 PM ET

Financial Analysis


EMC CORP/MA'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. Even though sales decreased, the net income has increased. EMC CORP/MA has average liquidity. Currently, the Quick Ratio is 1.13 which shows that technically this company has the 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 increased by 5.49% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)5475.05613.0
EBITDA ($mil)968.01043.0
EBIT ($mil)485.0573.0
Net Income ($mil)268.0252.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)9801.06450.0
Total Assets ($mil)45703.043293.0
Total Debt ($mil)6402.05495.0
Equity ($mil)21573.020449.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin67.867.17
EBITDA Margin17.6818.58
Operating Margin8.8610.21
Sales Turnover0.540.57
Return on Assets4.385.94
Return on Equity9.2912.58
Debt Q1 FY16 Q1 FY15
Current Ratio1.291.2
Debt/Capital0.230.21
Interest Expense41.040.0
Interest Coverage11.8314.33


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)1953.21942.06
Div / share0.120.12
EPS0.140.13
Book value / share11.0510.53
Institutional Own % n/a n/a
Avg Daily Volume1.1840243E71.285189E7

Valuation


HOLD. This stock's P/E ratio indicates a significant premium compared to an average of 13.69 for the Computers & Peripherals industry and a value on par with the S&P 500 average of 25.03. For additional comparison, its price-to-book ratio of 2.49 indicates a discount versus the S&P 500 average of 2.80 and a discount versus the industry average of 3.61. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, EMC CORP/MA seems to be trading at a premium 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
EMC 26.73 Peers 13.69   EMC 10.22 Peers 10.34

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

EMC is trading at a significant premium 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.

EMC 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
EMC 14.49 Peers 12.74   EMC 0.35 Peers 0.38

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

EMC is trading at a premium to its peers.

 

Average. 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.

EMC trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EMC 2.49 Peers 3.61   EMC -17.60 Peers -21.89

Discount. 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.

EMC is trading at a significant discount to its peers.

 

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

However, EMC is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EMC 2.18 Peers 2.08   EMC 0.27 Peers 4.55

Average. 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.

EMC is trading at a valuation on par with its industry on this measurement.

 

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

EMC significantly trails its peers on the basis of sales growth

 

 

Latest Stock Upgrades/Downgrades