Legg Mason Inc

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LM : NYSE : Financial
$38.04 up 0.11 | 0.29%
Today's Range: 37.75 - 38.21
Avg. Daily Volume: 981100.0
05/24/17 - 11:03 AM ET

Financial Analysis


LEGG MASON INC's gross profit margin for the fourth quarter of its fiscal year 2016 has decreased 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.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)723.13619.55
EBITDA ($mil)0.0113.04
EBIT ($mil)116.6297.5
Net Income ($mil)75.92-45.27


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)0.01913.05
Total Assets ($mil)0.07520.45
Total Debt ($mil)0.01780.99
Equity ($mil)0.04213.56


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin16.1318.25
EBITDA Margin0.018.24
Operating Margin16.1315.74
Sales Turnover0.00.35
Return on Assets0.0-0.33
Return on Equity0.0-0.59
Debt Q4 FY16 Q4 FY15
Current Ratio0.02.83
Debt/Capital0.00.3
Interest Expense31.1915.23
Interest Coverage3.746.4


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)98.09107.01
Div / share0.220.2
EPS0.76-0.43
Book value / share0.039.37
Institutional Own % n/a n/a
Avg Daily Volume1103484.01978076.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 20.16 for the Capital Markets industry and a discount compared to the S&P 500 average of 25.02. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, LEGG MASON INC 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
LM 17.03 Peers 20.16   LM NA Peers 17.68

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

LM is trading at a discount to its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
LM 11.10 Peers 16.89   LM NM Peers 1.05

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

LM 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.

LM'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
LM NA Peers 3.55   LM 787.50 Peers 57.45

Neutral. 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.

Ratio not available.

 

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

LM 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
LM 1.27 Peers 3.82   LM 8.49 Peers 10.47

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.

LM 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.

LM trails its peers on the basis of sales growth

 

 

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