Express Scripts Holding Co

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ESRX : NASDAQ : Health Care
$78.86 | %
Today's Range: 78.56 - 79.24
Avg. Daily Volume: 3,546,500
07/22/16 - 4:00 PM ET

Financial Analysis


EXPRESS SCRIPTS HOLDING CO'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, representing an increase to the bottom line. EXPRESS SCRIPTS HOLDING CO has very weak liquidity. Currently, the Quick Ratio is 0.49 which clearly 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.

At the same time, stockholders' equity ("net worth") has significantly decreased by 27.97% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)24791.824899.6
EBITDA ($mil)1431.81515.1
EBIT ($mil)940.8982.2
Net Income ($mil)526.1441.1


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)1771.1933.8
Total Assets ($mil)51107.651905.1
Total Debt ($mil)16591.312348.3
Equity ($mil)14841.120604.8


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin7.577.77
EBITDA Margin5.776.08
Operating Margin3.793.94
Sales Turnover1.991.97
Return on Assets5.014.08
Return on Equity17.2510.29
Debt Q1 FY16 Q1 FY15
Current Ratio0.60.62
Debt/Capital0.530.37
Interest Expense131.9116.4
Interest Coverage7.138.44


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)632.5729.29
Div / share0.00.0
EPS0.810.6
Book value / share23.4628.25
Institutional Own % n/a n/a
Avg Daily Volume3569793.05407932.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 21.88 for the Health Care Providers & Services industry and a discount compared to the S&P 500 average of 25.03. For additional comparison, its price-to-book ratio of 3.39 indicates a premium versus the S&P 500 average of 2.80 and a premium versus the industry average of 3.35. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. The valuation analysis reveals that, EXPRESS SCRIPTS HOLDING CO 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
ESRX 20.96 Peers 21.88   ESRX 9.98 Peers 12.26

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

ESRX is trading at a valuation on par with 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.

ESRX 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
ESRX 11.69 Peers 16.29   ESRX 0.27 Peers 0.93

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

ESRX is trading at a discount to its peers.

 

Discount. 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.

ESRX trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ESRX 3.39 Peers 3.35   ESRX 33.45 Peers 22.39

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.

ESRX 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.

ESRX 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
ESRX 0.49 Peers 0.81   ESRX -0.45 Peers 13.54

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.

ESRX 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.

ESRX significantly trails its peers on the basis of sales growth

 

 

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