Nielsen Holdings PLC

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NLSN : NYSE : Services
$55.22 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 1,839,800
07/25/16 - 4:02 PM ET

Financial Analysis


NIELSEN HOLDINGS NV's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. NIELSEN HOLDINGS NV has average liquidity. Currently, the Quick Ratio is 1.11 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 decreased by 5.28% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)1487.01458.0
EBITDA ($mil)381.0355.0
EBIT ($mil)234.0213.0
Net Income ($mil)100.063.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)432.0343.0
Total Assets ($mil)15588.015388.0
Total Debt ($mil)7660.07347.0
Equity ($mil)4516.04768.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin56.8957.34
EBITDA Margin25.6224.34
Operating Margin15.7414.61
Sales Turnover0.40.41
Return on Assets3.892.52
Return on Equity13.448.15
Debt Q1 FY16 Q1 FY15
Current Ratio1.371.44
Debt/Capital0.630.61
Interest Expense79.073.0
Interest Coverage2.962.92


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)361.11369.89
Div / share0.280.25
EPS0.270.17
Book value / share12.5112.89
Institutional Own % n/a n/a
Avg Daily Volume1832671.02414985.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 44.35 for the Professional Services industry and a premium compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 4.43 indicates a significant premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 6.18. The current price-to-sales ratio is well above the S&P 500 average, but 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 33.79 Peers 44.35   NLSN 16.83 Peers 23.52

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 17.46 Peers 21.00   NLSN 0.39 Peers 2.87

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NLSN 4.43 Peers 6.18   NLSN 60.78 Peers 17.64

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

NLSN is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NLSN 3.23 Peers 3.53   NLSN -0.90 Peers 13.27

Average. 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 valuation on par with 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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