Nielsen Holdings Plc

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NLSN : NYSE : Commercial Services
$33.68 up 0.08 | 0.24%
Today's Range: 33.55 - 34.26
Avg. Daily Volume: 3951800.0
02/16/18 - 4:01 PM ET

Financial Analysis


NIELSEN HOLDINGS PLC's gross profit margin for the fourth 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 PLC has average liquidity. Currently, the Quick Ratio is 1.14 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.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.48% 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 Q4 FY17 Q4 FY16
Net Sales ($mil)1761.01656.0
EBITDA ($mil)552.0526.0
EBIT ($mil)389.0373.0
Net Income ($mil)81.0159.0


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)656.0754.0
Total Assets ($mil)16866.015730.0
Total Debt ($mil)8441.07926.0
Equity ($mil)4245.04102.0


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin58.3259.54
EBITDA Margin31.3431.76
Operating Margin22.0922.52
Sales Turnover0.390.4
Return on Assets2.543.19
Return on Equity10.112.23
Debt Q4 FY17 Q4 FY16
Current Ratio1.341.39
Debt/Capital0.670.66
Interest Expense97.086.0
Interest Coverage4.014.34


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)355.95357.47
Div / share0.340.31
EPS0.230.44
Book value / share11.9311.48
Institutional Own % n/a n/a
Avg Daily Volume4093697.02831099.0

Valuation


HOLD. The current P/E ratio indicates a discount compared to an average of 30.62 for the Professional Services industry and a premium compared to the S&P 500 average of 25.51. To use another comparison, its price-to-book ratio of 2.82 indicates a discount versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 8.12. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, NIELSEN HOLDINGS PLC 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 27.77 Peers 30.62   NLSN 9.13 Peers 17.48

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

NLSN is trading at a valuation on par with 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 11.20 Peers 19.72   NLSN 0.23 Peers 0.98

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 2.82 Peers 8.12   NLSN -12.32 Peers 48.17

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 1.82 Peers 3.90   NLSN 4.16 Peers 11.27

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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