Validus Holdings Ltd

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VR : NYSE : Financial
$57.31 | %
Today's Range: 57.15 - 57.63
Avg. Daily Volume: 508500.0
02/24/17 - 4:02 PM ET

Financial Analysis


VALIDUS HOLDINGS LTD's gross profit margin for the fourth quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not.

During the same period, stockholders' equity ("net worth") has increased by 5.47% from the same quarter last year.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)520.88539.67
EBITDA ($mil)37.89115.43
EBIT ($mil)36.47114.01
Net Income ($mil)9.9769.04


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)3287.13111.58
Total Assets ($mil)11349.7610515.81
Total Debt ($mil)1060.79858.32
Equity ($mil)3838.293638.98


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin23.9741.25
EBITDA Margin7.2721.38
Operating Margin7.021.13
Sales Turnover0.210.22
Return on Assets3.23.56
Return on Equity9.3610.3
Debt Q4 FY16 Q4 FY15
Current Ratio0.00.0
Debt/Capital0.220.19
Interest Expense14.6316.58
Interest Coverage2.496.88


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)79.1382.9
Div / share0.350.32
EPS0.10.81
Book value / share48.543.9
Institutional Own % n/a n/a
Avg Daily Volume504393.0472657.0

Valuation


BUY. VALIDUS HOLDINGS LTD's P/E ratio indicates a significant discount compared to an average of 24.07 for the Insurance industry and a significant discount compared to the S&P 500 average of 26.53. Conducting a second comparison, its price-to-book ratio of 1.19 indicates a significant discount versus the S&P 500 average of 2.96 and a discount versus the industry average of 1.76. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. Upon assessment of these and other key valuation criteria, VALIDUS HOLDINGS LTD 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
VR 13.29 Peers 24.07   VR 11.10 Peers 13.55

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

VR 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.

VR 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
VR 12.92 Peers 15.90   VR NM Peers 1.38

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

VR is trading at a discount to its peers.

 

Neutral. 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.

VR's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
VR 1.19 Peers 1.76   VR 0.23 Peers -5.26

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.

VR is trading at a significant discount to its peers.

 

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

VR is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
VR 1.87 Peers 1.46   VR 3.60 Peers 11.50

Premium. 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.

VR is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

VR significantly trails its peers on the basis of sales growth

 

 

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