Nielsen Holdings PLC

Find Ratings Reports
NLSN : NYSE : Services
$38.54 | %
Today's Range: 37.95 - 38.6
Avg. Daily Volume: 2848300.0
05/26/17 - 4:02 PM ET

Financial Analysis


NIELSEN HOLDINGS NV's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. NIELSEN HOLDINGS NV has average liquidity. Currently, the Quick Ratio is 1.06 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 8.70% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)1526.01487.0
EBITDA ($mil)398.0381.0
EBIT ($mil)243.0234.0
Net Income ($mil)71.0100.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)451.0432.0
Total Assets ($mil)16332.015588.0
Total Debt ($mil)8416.07660.0
Equity ($mil)4123.04516.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin56.6856.89
EBITDA Margin26.0825.62
Operating Margin15.9215.74
Sales Turnover0.390.4
Return on Assets2.893.89
Return on Equity11.4713.44
Debt Q1 FY17 Q1 FY16
Current Ratio1.291.37
Debt/Capital0.670.63
Interest Expense90.079.0
Interest Coverage2.72.96


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)357.3361.11
Div / share0.310.28
EPS0.20.27
Book value / share11.5412.51
Institutional Own % n/a n/a
Avg Daily Volume2850315.02911888.0

Valuation


HOLD. The current P/E ratio indicates a discount compared to an average of 38.40 for the Professional Services industry and a premium compared to the S&P 500 average of 25.02. Conducting a second comparison, its price-to-book ratio of 3.38 indicates a premium versus the S&P 500 average of 3.00 and a significant discount versus the industry average of 8.08. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, NIELSEN HOLDINGS NV 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 29.80 Peers 38.40   NLSN 11.17 Peers 18.82

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 13.51 Peers 20.07   NLSN 0.33 Peers 0.91

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 3.38 Peers 8.08   NLSN -20.13 Peers 22.17

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 2.20 Peers 3.95   NLSN 2.37 Peers 11.18

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

 

 

Latest Stock Upgrades/Downgrades