E*TRADE Financial Corp

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ETFC : NASDAQ : Financial
$33.64 | %
Today's Range: 33.365 - 33.98
Avg. Daily Volume: 3565200.0
03/24/17 - 4:00 PM ET

Financial Analysis


E TRADE FINANCIAL CORP's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has increased by 8.15% from the same quarter last year.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)532.0461.0
EBITDA ($mil)262.0222.0
EBIT ($mil)235.0197.0
Net Income ($mil)127.089.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)3410.03333.0
Total Assets ($mil)48999.045427.0
Total Debt ($mil)1441.01530.0
Equity ($mil)6272.05799.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin49.2548.16
EBITDA Margin49.2448.15
Operating Margin44.1742.73
Sales Turnover0.040.04
Return on Assets1.120.58
Return on Equity8.84.62
Debt Q4 FY16 Q4 FY15
Current Ratio0.00.0
Debt/Capital0.190.21
Interest Expense22.022.0
Interest Coverage10.688.95


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)273.96291.34
Div / share0.00.0
EPS0.460.3
Book value / share22.8919.9
Institutional Own % n/a n/a
Avg Daily Volume3433636.03382347.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 26.25 for the Capital Markets industry and a discount compared to the S&P 500 average of 26.73. To use another comparison, its price-to-book ratio of 1.57 indicates a discount versus the S&P 500 average of 2.98 and a significant discount versus the industry average of 4.27. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, E TRADE FINANCIAL CORP 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
ETFC 18.10 Peers 26.25   ETFC 6.04 Peers 25.47

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

ETFC is trading at a significant 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.

ETFC is trading at a significant 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
ETFC 15.68 Peers 17.41   ETFC NM Peers 1.55

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

ETFC is trading at a 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.

ETFC'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
ETFC 1.57 Peers 4.27   ETFC 120.00 Peers 12.44

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.

ETFC is trading at a significant discount to its peers.

 

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

ETFC 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
ETFC 4.83 Peers 8.09   ETFC 5.39 Peers 4.81

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.

ETFC 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.

ETFC has a sales growth rate that exceeds its peers.

 

 

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