Nielsen Holdings PLCFind Ratings Reports
NIELSEN HOLDINGS NV'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. Even though sales increased, the net income has decreased. NIELSEN HOLDINGS NV has weak liquidity. Currently, the Quick Ratio is 0.69 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 8.59% 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 ($mil)||1596.0||1559.0|
|Net Income ($mil)||113.0||114.0|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||346.0||331.0|
|Total Assets ($mil)||15718.0||15465.0|
|Total Debt ($mil)||8008.0||7473.0|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||59.02||58.43|
|Return on Assets||3.85||2.77|
|Return on Equity||14.17||9.17|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||357.35||366.86|
|Div / share||0.31||0.28|
|Book value / share||11.96||12.75|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1883005.0||1865962.0|
BUY. The current P/E ratio indicates a discount compared to an average of 37.44 for the Professional Services industry and a premium compared to the S&P 500 average of 24.54. To use another comparison, its price-to-book ratio of 4.39 indicates a significant premium versus the S&P 500 average of 2.72 and a significant discount versus the industry average of 7.31. 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.
|NLSN 32.04||Peers 37.44||NLSN 16.44||Peers 17.26|
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.
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.
NLSN is trading at a valuation on par to its peers.
|NLSN 16.68||Peers 19.91||NLSN 0.37||Peers 1.13|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
NLSN is trading at a valuation on par with 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.
|NLSN 4.39||Peers 7.31||NLSN 43.85||Peers 96.50|
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.
|NLSN 3.01||Peers 3.80||NLSN 0.25||Peers 40.30|
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.
NLSN is trading at a 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