St Jude Medical Inc

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STJ : NYSE : Health Care
$83.04 | %
Today's Range: 82.59 - 83.48
Avg. Daily Volume: 3,389,700
07/29/16 - 4:04 PM ET

Financial Analysis


ST JUDE MEDICAL INC's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. ST JUDE MEDICAL INC has average liquidity. Currently, the Quick Ratio is 1.01 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 increased by 11.45% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)1562.01410.0
EBITDA ($mil)0.0417.0
EBIT ($mil)357.0339.0
Net Income ($mil)238.0290.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)398.0934.0
Total Assets ($mil)12658.09634.0
Total Debt ($mil)6091.03741.0
Equity ($mil)4281.03841.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin66.3374.11
EBITDA Margin0.029.57
Operating Margin22.8624.04
Sales Turnover0.460.58
Return on Assets5.2210.74
Return on Equity15.4426.94
Debt Q2 FY16 Q2 FY15
Current Ratio1.711.14
Debt/Capital0.590.49
Interest Expense0.020.0
Interest Coverage0.016.95


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)283.87281.5
Div / share0.310.29
EPS0.831.02
Book value / share15.0813.65
Institutional Own % n/a n/a
Avg Daily Volume4094018.02192531.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 62.82 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 5.41 indicates a significant premium versus the S&P 500 average of 2.81 and a premium versus the industry average of 4.84. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, ST JUDE MEDICAL INC seems to be trading 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
STJ 35.31 Peers 62.82   STJ NA Peers 33.31

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

STJ is trading at a significant discount to its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
STJ 18.45 Peers 29.14   STJ 1.10 Peers 1.03

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

STJ is trading at a significant discount to its peers.

 

Average. 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.

STJ trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
STJ 5.41 Peers 4.84   STJ -35.66 Peers 159.18

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

STJ is trading at a premium to its peers.

 

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

However, STJ 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
STJ 3.99 Peers 4.71   STJ 4.13 Peers 20.16

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.

STJ 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.

STJ significantly trails its peers on the basis of sales growth

 

 

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