Live Nation Entertainment Inc

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LYV : NYSE : Services
$27.50 up 0.02 | 0.07%
Today's Range: 27.34 - 27.73
Avg. Daily Volume: 1,041,600
09/28/16 - 3:59 PM ET

Financial Analysis


LIVE NATION ENTERTAINMENT's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. LIVE NATION ENTERTAINMENT has weak liquidity. Currently, the Quick Ratio is 0.71 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 5.02% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)2179.261765.78
EBITDA ($mil)153.72120.03
EBIT ($mil)73.8844.93
Net Income ($mil)26.4511.95


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)1512.11525.82
Total Assets ($mil)7043.436713.52
Total Debt ($mil)2030.112030.46
Equity ($mil)1188.511251.4


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin25.626.8
EBITDA Margin7.056.79
Operating Margin3.392.54
Sales Turnover1.11.04
Return on Assets-0.66-2.0
Return on Equity-3.94-10.76
Debt Q2 FY16 Q2 FY15
Current Ratio0.981.01
Debt/Capital0.630.62
Interest Expense25.2825.65
Interest Coverage2.921.75


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)203.09202.36
Div / share0.00.0
EPS0.130.06
Book value / share5.856.18
Institutional Own % n/a n/a
Avg Daily Volume1107219.01283157.0

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 4.68 indicates a significant premium versus the S&P 500 average of 2.82 and a premium versus the industry average of 3.20. 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, LIVE NATION ENTERTAINMENT proves to trade at a premium 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
LYV NM Peers 22.94   LYV 12.27 Peers 11.47

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

LYV's P/E is negative making this valuation measure meaningless.

 

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.

LYV is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
LYV 130.52 Peers 23.61   LYV NA Peers 1.19

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

LYV's ratio is negative making this valuation measure meaningless.

 

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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LYV 4.68 Peers 3.20   LYV 64.29 Peers 15.62

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

LYV is trading at a significant premium to its peers.

 

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

LYV 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
LYV 0.72 Peers 6.85   LYV 11.30 Peers 12.04

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.

LYV is trading at a significant discount to its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

LYV is keeping pace with its peers on the basis of sales growth.

 

 

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