Nielsen Holdings PLC

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NLSN : NYSE : Services
$54.60 | %
Today's Range: 53.48 - 54.64
Avg. Daily Volume: 1,893,600
10/21/16 - 4:02 PM ET

Financial Analysis

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 ($mil)1596.01559.0
EBITDA ($mil)468.0446.0
EBIT ($mil)316.0300.0
Net Income ($mil)113.0114.0

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)346.0331.0
Total Assets ($mil)15718.015465.0
Total Debt ($mil)8008.07473.0
Equity ($mil)4275.04677.0

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin59.0258.43
EBITDA Margin29.3228.6
Operating Margin19.819.24
Sales Turnover0.40.4
Return on Assets3.852.77
Return on Equity14.179.17
Debt Q2 FY16 Q2 FY15
Current Ratio0.841.29
Interest Expense83.079.0
Interest Coverage3.813.8

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)357.35366.86
Div / share0.310.28
Book value / share11.9612.75
Institutional Own % n/a n/a
Avg Daily Volume1883005.01865962.0


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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
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



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