IHS Markit Ltd.Find Ratings Reports
IHS MARKIT LTD's gross profit margin for the third quarter of its fiscal year 2021 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. IHS MARKIT LTD has weak liquidity. Currently, the Quick Ratio is 0.58 which 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 remained virtually unchanged only increasing by 3.66% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY21||Q3 FY20|
|Net Sales ($mil)||1180.5||1073.2|
|Net Income ($mil)||161.3||162.9|
|Balance Sheet||Q3 FY21||Q3 FY20|
|Cash & Equiv. ($mil)||337.9||156.8|
|Total Assets ($mil)||16496.5||16233.6|
|Total Debt ($mil)||5204.7||5336.3|
|Profitability||Q3 FY21||Q3 FY20|
|Gross Profit Margin||63.94||64.07|
|Return on Assets||3.76||5.68|
|Return on Equity||6.97||10.74|
|Debt||Q3 FY21||Q3 FY20|
|Share Data||Q3 FY21||Q3 FY20|
|Shares outstanding (mil)||398.84||398.36|
|Div / share||0.2||0.17|
|Book value / share||22.33||21.57|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2231766.0||2401036.0|
BUY. This stock's P/E ratio indicates a premium compared to an average of 68.10 for the Other Information Services subsector and a significant premium compared to the S&P 500 average of 27.71. Conducting a second comparison, its price-to-book ratio of 5.36 indicates a premium versus the S&P 500 average of 4.43 and a significant discount versus the subsector average of 8.10. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. The valuation analysis reveals that, IHS MARKIT LTD seems to be trading at a premium to investment alternatives.
|INFO 77.27||Peers 45.99||INFO 34.58||Peers 34.34|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
INFO 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.
INFO is trading at a valuation on par to its peers.
|INFO 33.83||Peers 45.49||INFO 1.63||Peers 0.94|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
INFO is trading at a discount to its peers.
Premium. 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.
INFO trades at a significant premium to its peers.
|INFO 5.36||Peers 8.10||INFO -32.32||Peers 71.19|
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.
INFO 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, INFO is expected to significantly trail its peers on the basis of its earnings growth rate.
|INFO 10.41||Peers 7.34||INFO 6.69||Peers 16.35|
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.
INFO is trading at a significant premium to its subsector.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
INFO significantly trails its peers on the basis of sales growth.