Nielsen Holdings PLC

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NLSN : NYSE : Services
$42.72 | %
Today's Range: 41.5 - 42.97
Avg. Daily Volume: 2986600.0
12/09/16 - 4:03 PM ET

Financial Analysis


NIELSEN HOLDINGS NV's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. NIELSEN HOLDINGS NV has weak liquidity. Currently, the Quick Ratio is 0.84 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 virtually unchanged only decreasing by 4.06% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)1570.01531.0
EBITDA ($mil)476.0457.0
EBIT ($mil)325.0313.0
Net Income ($mil)130.0142.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)446.0358.0
Total Assets ($mil)15700.015277.0
Total Debt ($mil)7957.07453.0
Equity ($mil)4246.04426.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin59.1159.83
EBITDA Margin30.3129.84
Operating Margin20.720.44
Sales Turnover0.40.4
Return on Assets3.783.14
Return on Equity13.9810.84
Debt Q3 FY16 Q3 FY15
Current Ratio1.021.2
Debt/Capital0.650.63
Interest Expense85.079.0
Interest Coverage3.823.96


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)357.43364.06
Div / share0.310.28
EPS0.360.38
Book value / share11.8812.16
Institutional Own % n/a n/a
Avg Daily Volume2639726.01816103.0

Valuation


BUY. NIELSEN HOLDINGS NV's P/E ratio indicates a discount compared to an average of 35.29 for the Professional Services industry and a value on par with the S&P 500 average of 25.16. Conducting a second comparison, its price-to-book ratio of 3.68 indicates a premium versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 7.09. The price-to-sales ratio is well 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 26.99 Peers 35.29   NLSN 13.56 Peers 17.58

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 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 14.96 Peers 19.97   NLSN 0.34 Peers 3.07

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 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 3.68 Peers 7.09   NLSN 26.56 Peers 64.66

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 2.49 Peers 3.64   NLSN 1.55 Peers 31.66

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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