Vector Group Ltd

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VGR : NYSE : Consumer Goods
$22.08 | %
Today's Range: 22.00 - 22.40
Avg. Daily Volume: 556,600
08/26/16 - 4:02 PM ET

Financial Analysis


VECTOR GROUP LTD's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. VECTOR GROUP LTD is extremely liquid. Currently, the Quick Ratio is 3.03 which clearly shows the ability to cover any short-term cash needs. VGR managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 210.32% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)331.41307.74
EBITDA ($mil)76.5964.33
EBIT ($mil)70.7257.89
Net Income ($mil)24.0217.61


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)635.59580.9
Total Assets ($mil)1479.51462.84
Total Debt ($mil)1127.35879.07
Equity ($mil)-257.53-82.99


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin48.4346.35
EBITDA Margin23.1120.9
Operating Margin21.3418.81
Sales Turnover0.860.8
Return on Assets4.34.46
Return on Equity0.00.0
Debt Q2 FY16 Q2 FY15
Current Ratio3.683.23
Debt/Capital1.31.1
Interest Expense36.3731.76
Interest Coverage1.941.82


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)123.84122.67
Div / share0.40.38
EPS0.20.13
Book value / share-2.08-0.68
Institutional Own % n/a n/a
Avg Daily Volume559179.0741948.0

Valuation


HOLD. VECTOR GROUP LTD's P/E ratio indicates a significant premium compared to an average of 21.32 for the Tobacco industry and a significant premium compared to the S&P 500 average of 25.30. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is above the S&P 500 average, but well below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
VGR 41.04 Peers 21.32   VGR 19.42 Peers 20.58

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

VGR is trading at a significant premium to its peers.

 

Average. 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.

VGR is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
VGR 29.79 Peers 13.46   VGR 0.91 Peers 4.87

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

VGR is trading at a significant premium 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.

VGR 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
VGR NM Peers 20.54   VGR -2.36 Peers 2.01

Neutral. 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.

VGR's P/B is negative making this valuation measure meaningless.

 

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

However, VGR 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
VGR 2.12 Peers 6.30   VGR 7.99 Peers -0.50

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.

VGR is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

VGR has a sales growth rate that significantly exceeds its peers.

 

 

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