Vector Group Ltd

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VGR : NYSE : Consumer Goods
$21.19 | %
Today's Range: 21.13 - 21.3
Avg. Daily Volume: 786600.0
04/21/17 - 4:02 PM ET

Financial Analysis


VECTOR GROUP LTD's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. VECTOR GROUP LTD is extremely liquid. Currently, the Quick Ratio is 2.98 which clearly shows the ability to cover any 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 significantly decreased by 61.12% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)300.52312.47
EBITDA ($mil)36.2543.48
EBIT ($mil)30.7537.22
Net Income ($mil)4.67.9


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)550.43422.34
Total Assets ($mil)1404.041310.76
Total Debt ($mil)1172.45895.17
Equity ($mil)-332.0-206.05


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin42.1841.68
EBITDA Margin12.0613.91
Operating Margin10.2311.91
Sales Turnover0.90.93
Return on Assets5.064.51
Return on Equity0.00.0
Debt Q4 FY16 Q4 FY15
Current Ratio3.62.7
Debt/Capital1.41.3
Interest Expense38.5324.29
Interest Coverage0.81.53


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)127.74129.98
Div / share0.40.38
EPS0.030.06
Book value / share-2.6-1.59
Institutional Own % n/a n/a
Avg Daily Volume805177.0797509.0

Valuation


BUY. VECTOR GROUP LTD's P/E ratio indicates a significant premium compared to an average of 19.44 for the Tobacco industry and a significant premium compared to the S&P 500 average of 24.80. 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 similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
VGR 37.42 Peers 19.44   VGR 27.07 Peers 32.02

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.

 

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.

VGR 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
VGR 27.22 Peers 14.57   VGR 1.87 Peers 1.20

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.

 

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.

VGR 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
VGR NM Peers 10.45   VGR 24.92 Peers 41.58

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 2.09 Peers 6.93   VGR 3.53 Peers 0.79

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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