Piedmont Natural Gas Co Inc

Find Ratings Reports
PNY : NYSE : Utilities
$59.97 | %
Today's Range: 59.90 - 60.02
Avg. Daily Volume: 452,300
08/26/16 - 4:03 PM ET

Financial Analysis


PIEDMONT NATURAL GAS CO's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. PIEDMONT NATURAL GAS CO has very weak liquidity. Currently, the Quick Ratio is 0.18 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 8.28% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)350.19424.93
EBITDA ($mil)139.01143.22
EBIT ($mil)104.97111.53
Net Income ($mil)63.4366.4


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)12.3213.38
Total Assets ($mil)5464.264861.37
Total Debt ($mil)1954.111679.44
Equity ($mil)1551.291432.56


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin39.733.71
EBITDA Margin39.6933.7
Operating Margin29.9826.25
Sales Turnover0.210.28
Return on Assets2.542.94
Return on Equity8.959.98
Debt Q2 FY16 Q2 FY15
Current Ratio0.430.45
Debt/Capital0.560.54
Interest Expense19.8820.89
Interest Coverage5.285.34


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)81.278.98
Div / share0.340.33
EPS0.780.84
Book value / share19.1118.14
Institutional Own % n/a n/a
Avg Daily Volume462355.0419461.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 36.27 for the Gas Utilities industry and a premium compared to the S&P 500 average of 25.30. To use another comparison, its price-to-book ratio of 3.14 indicates a premium versus the S&P 500 average of 2.83 and a discount versus the industry average of 3.75. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, PIEDMONT NATURAL GAS CO 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
PNY 35.24 Peers 36.27   PNY 19.13 Peers 11.00

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

PNY is trading at a valuation on par with its peers.

 

Premium. 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.

PNY is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
PNY 28.53 Peers 24.83   PNY 3.13 Peers 2.15

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

PNY is trading at a significant premium to its peers.

 

Premium. 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.

PNY trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PNY 3.14 Peers 3.75   PNY -6.60 Peers -24.78

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.

PNY is trading at a discount to its peers.

 

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

PNY 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
PNY 4.23 Peers 2.32   PNY -16.73 Peers -16.22

Premium. 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.

PNY is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

PNY significantly trails its peers on the basis of sales growth

 

 

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