E*TRADE Financial Corp

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ETFC : NASDAQ : Financial
$35.64 | %
Today's Range: 35.16 - 35.74
Avg. Daily Volume: 3649500.0
12/09/16 - 4:00 PM ET

Financial Analysis


E TRADE FINANCIAL CORP's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not.

During the same period, stockholders' equity ("net worth") has increased by 8.67% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)507.0477.0
EBITDA ($mil)295.0236.0
EBIT ($mil)270.0210.0
Net Income ($mil)139.0-153.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)3626.01621.0
Total Assets ($mil)49199.041205.0
Total Debt ($mil)1403.01437.0
Equity ($mil)6316.05812.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin58.1949.48
EBITDA Margin58.1849.47
Operating Margin53.2544.03
Sales Turnover0.040.05
Return on Assets1.040.53
Return on Equity8.133.78
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Debt/Capital0.180.2
Interest Expense21.047.0
Interest Coverage12.864.47


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)273.81290.43
Div / share0.00.0
EPS0.51-0.53
Book value / share23.0720.01
Institutional Own % n/a n/a
Avg Daily Volume3609005.02787539.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 21.88 for the Capital Markets industry and a discount compared to the S&P 500 average of 25.22. To use another comparison, its price-to-book ratio of 1.51 indicates a discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 4.21. 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 19.19 Peers 21.88   ETFC 10.87 Peers 16.87

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

ETFC is trading at a 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 19.19 Peers 20.01   ETFC 0.19 Peers 2.26

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

ETFC is trading at a valuation on par with 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.

ETFC 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
ETFC 1.51 Peers 4.21   ETFC 145.94 Peers 47.98

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 4.88 Peers 5.69   ETFC -0.71 Peers 1.18

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 discount to its industry on this measurement.

 

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

ETFC significantly trails its peers on the basis of sales growth

 

 

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