Nielsen Holdings PLC

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NLSN : NYSE : Services
$40.17 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 2586800.0
09/19/17 - 4:01 PM ET

Financial Analysis


NIELSEN HOLDINGS PLC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. NIELSEN HOLDINGS PLC has average liquidity. Currently, the Quick Ratio is 1.19 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.96% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1644.01596.0
EBITDA ($mil)497.0468.0
EBIT ($mil)335.0316.0
Net Income ($mil)131.0113.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)510.0346.0
Total Assets ($mil)16494.015718.0
Total Debt ($mil)8523.08008.0
Equity ($mil)4191.04275.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin58.7659.02
EBITDA Margin30.2329.32
Operating Margin20.3819.8
Sales Turnover0.390.4
Return on Assets2.973.85
Return on Equity11.7114.17
Debt Q2 FY17 Q2 FY16
Current Ratio1.410.84
Debt/Capital0.670.65
Interest Expense92.083.0
Interest Coverage3.643.81


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)356.58357.35
Div / share0.340.31
EPS0.370.31
Book value / share11.7511.96
Institutional Own % n/a n/a
Avg Daily Volume2629992.03141993.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 35.62 for the Professional Services industry and a premium compared to the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 3.35 indicates valuation on par with the S&P 500 average of 3.10 and a significant discount versus the industry average of 8.59. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, NIELSEN HOLDINGS PLC 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
NLSN 28.74 Peers 35.62   NLSN 11.12 Peers 19.14

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

NLSN 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.

NLSN 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
NLSN 13.72 Peers 20.42   NLSN 0.33 Peers 0.70

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

NLSN is trading at a significant discount to 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.

NLSN 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
NLSN 3.35 Peers 8.59   NLSN -16.47 Peers 36.22

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.

NLSN 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, NLSN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NLSN 2.19 Peers 3.86   NLSN 2.53 Peers 12.15

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.

NLSN 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.

NLSN significantly trails its peers on the basis of sales growth

 

 

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