St Jude Medical Inc

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STJ : NYSE : Health Care
$79.02 | %
Today's Range: 78.78 - 79.25
Avg. Daily Volume: 2406300.0
12/02/16 - 4:02 PM ET

Financial Analysis


ST JUDE MEDICAL INC's gross profit margin for the third 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. ST JUDE MEDICAL INC has average liquidity. Currently, the Quick Ratio is 1.16 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.

During the same period, stockholders' equity ("net worth") has increased by 12.23% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)1499.01339.0
EBITDA ($mil)441.0403.0
EBIT ($mil)335.0326.0
Net Income ($mil)212.0215.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)403.02546.0
Total Assets ($mil)12541.011125.0
Total Debt ($mil)5774.05060.0
Equity ($mil)4486.03997.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin72.5873.56
EBITDA Margin29.4130.09
Operating Margin22.3524.35
Sales Turnover0.470.5
Return on Assets5.249.09
Return on Equity14.6625.31
Debt Q3 FY16 Q3 FY15
Current Ratio1.931.75
Debt/Capital0.560.56
Interest Expense39.022.0
Interest Coverage8.5914.82


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)285.6282.45
Div / share0.310.29
EPS0.730.75
Book value / share15.7114.15
Institutional Own % n/a n/a
Avg Daily Volume3344663.02365196.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 59.52 for the Health Care Equipment & Supplies industry and a premium compared to the S&P 500 average of 25.16. To use another comparison, its price-to-book ratio of 5.11 indicates a significant premium versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 7.37. 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, ST JUDE MEDICAL INC 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
STJ 35.03 Peers 59.52   STJ 21.01 Peers 23.50

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.

 

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.

STJ is trading at a 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
STJ 18.17 Peers 23.66   STJ 1.14 Peers 0.93

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 discount 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.

STJ trades at a premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
STJ 5.11 Peers 7.37   STJ -34.95 Peers 80.08

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.

STJ 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, 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 3.85 Peers 5.63   STJ 7.64 Peers 19.73

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 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.

STJ significantly trails its peers on the basis of sales growth

 

 

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