Endurance Specialty Holdings Ltd

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ENH : NYSE : Financial
$65.63 up 0.21 | 0.32%
Today's Range: 65.38 - 65.89
Avg. Daily Volume: 247,700
08/29/16 - 2:42 PM ET

Financial Analysis


ENDURANCE SPECIALTY HOLDINGS's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased.

At the same time, stockholders' equity ("net worth") has greatly increased by 46.67% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)635.77497.46
EBITDA ($mil)85.97114.17
EBIT ($mil)59.84107.69
Net Income ($mil)83.9184.21


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)1634.44769.37
Total Assets ($mil)14831.6710715.28
Total Debt ($mil)705.26528.12
Equity ($mil)4844.643302.91


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin27.3434.85
EBITDA Margin13.5222.95
Operating Margin9.4121.65
Sales Turnover0.160.19
Return on Assets2.363.29
Return on Equity6.569.71
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.130.14
Interest Expense11.369.06
Interest Coverage5.2711.88


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)67.5745.16
Div / share0.380.35
EPS1.141.68
Book value / share71.773.14
Institutional Own % n/a n/a
Avg Daily Volume248874.0287043.0

Valuation


BUY. ENDURANCE SPECIALTY HOLDINGS's P/E ratio indicates a significant discount compared to an average of 42.48 for the Insurance industry and a significant discount compared to the S&P 500 average of 25.13. Conducting a second comparison, its price-to-book ratio of 0.91 indicates a significant discount versus the S&P 500 average of 2.82 and a discount versus the industry average of 1.53. The current price-to-sales ratio is similar to the S&P 500 average, but it is above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, ENDURANCE SPECIALTY HOLDINGS 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
ENH 13.63 Peers 42.48   ENH 17.89 Peers 11.80

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

ENH is trading at a significant discount to its peers.

 

Premium. 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.

ENH is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ENH 10.09 Peers 14.38   ENH NM Peers 1.87

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

ENH is trading at a discount 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.

ENH'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
ENH 0.91 Peers 1.53   ENH -32.54 Peers -3.60

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.

ENH 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, ENH 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
ENH 1.84 Peers 1.40   ENH 21.26 Peers 4.77

Premium. 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.

ENH is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

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

 

 

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