USG : NYSE : Industrial Goods
$26.96 -0.47 | -1.7%
Today's Range: 26.88 - 27.55
Avg. Daily Volume: 1337700.0
07/28/17 - 1:45 PM ET

Financial Analysis


USG CORP's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. USG CORP has strong liquidity. Currently, the Quick Ratio is 1.75 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 25.67% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)811.0769.0
EBITDA ($mil)135.0155.0
EBIT ($mil)103.0122.0
Net Income ($mil)36.074.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)430.0687.0
Total Assets ($mil)3887.04645.0
Total Debt ($mil)1077.02039.0
Equity ($mil)1968.01566.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin25.2829.39
EBITDA Margin16.6420.15
Operating Margin12.715.86
Sales Turnover0.790.64
Return on Assets11.8322.15
Return on Equity9.464.75
Debt Q2 FY17 Q2 FY16
Current Ratio2.51.78
Debt/Capital0.350.57
Interest Expense19.038.0
Interest Coverage5.423.21


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)140.31145.95
Div / share0.00.0
EPS0.310.46
Book value / share14.0310.73
Institutional Own % n/a n/a
Avg Daily Volume1402501.01507292.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.99 for the Building Products industry and a discount compared to the S&P 500 average of 24.71. To use another comparison, its price-to-book ratio of 1.93 indicates a discount versus the S&P 500 average of 3.08 and a significant discount versus the industry average of 51.72. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, USG CORP 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
USG 21.62 Peers 24.99   USG 11.55 Peers 17.47

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

USG 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.

USG 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
USG 12.57 Peers 19.00   USG 0.86 Peers 1.15

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

USG is trading at a 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.

USG trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
USG 1.93 Peers 51.72   USG -81.86 Peers 145.34

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.

USG 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, USG 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
USG 1.23 Peers 1.69   USG 3.28 Peers 12.70

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.

USG 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.

USG significantly trails its peers on the basis of sales growth

 

 

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