Live Nation Entertainment Inc

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LYV : NYSE : Services
$25.77 -0.24 | -0.92%
Today's Range: 25.76 - 26.07
Avg. Daily Volume: 1,183,800
07/28/16 - 12:36 PM ET

Financial Analysis


LIVE NATION ENTERTAINMENT's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged 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. LIVE NATION ENTERTAINMENT has weak liquidity. Currently, the Quick Ratio is 0.75 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged 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 Q1 FY16 Q1 FY15
Net Sales ($mil)1207.721120.31
EBITDA ($mil)40.6840.31
EBIT ($mil)-32.13-24.42
Net Income ($mil)-57.85-62.17


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)1699.281606.66
Total Assets ($mil)6927.176338.4
Total Debt ($mil)2036.842032.88
Equity ($mil)1184.391195.95


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin33.2333.85
EBITDA Margin3.363.59
Operating Margin-2.66-2.18
Sales Turnover1.061.08
Return on Assets-0.88-1.95
Return on Equity-5.18-10.38
Debt Q1 FY16 Q1 FY15
Current Ratio1.011.06
Debt/Capital0.630.63
Interest Expense25.4325.36
Interest Coverage-1.26-0.96


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)202.93201.59
Div / share0.00.0
EPS-0.29-0.31
Book value / share5.845.93
Institutional Own % n/a n/a
Avg Daily Volume1181707.01314509.0

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 4.31 indicates a significant premium versus the S&P 500 average of 2.81 and a premium versus the industry average of 3.71. 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 23.01   LYV 10.79 Peers 19.72

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.

 

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.

LYV 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
LYV 119.86 Peers 80.89   LYV NA Peers 1.36

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 4.31 Peers 3.71   LYV 50.77 Peers -8.91

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 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 0.70 Peers 3.76   LYV 6.89 Peers 42.30

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.

 

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

LYV significantly trails its peers on the basis of sales growth

 

 

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