Validus Holdings Ltd

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VR : NYSE : Financial
$54.65 | %
Today's Range: 54.48 - 54.99
Avg. Daily Volume: 480800.0
12/02/16 - 4:02 PM ET

Financial Analysis


VALIDUS HOLDINGS LTD'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. 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.

During the same period, stockholders' equity ("net worth") has increased by 6.12% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)616.54590.84
EBITDA ($mil)153.18124.34
EBIT ($mil)151.76122.92
Net Income ($mil)92.166.65


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)3446.532144.17
Total Assets ($mil)11486.1511235.96
Total Debt ($mil)1156.212228.64
Equity ($mil)3867.623644.56


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin39.6938.89
EBITDA Margin24.8421.04
Operating Margin24.6220.8
Sales Turnover0.210.21
Return on Assets3.683.84
Return on Equity10.8711.84
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Debt/Capital0.230.38
Interest Expense14.5218.51
Interest Coverage10.456.64


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)79.4482.0
Div / share0.350.32
EPS1.110.78
Book value / share48.6844.45
Institutional Own % n/a n/a
Avg Daily Volume469185.0374174.0

Valuation


BUY. VALIDUS HOLDINGS LTD's P/E ratio indicates a significant discount compared to an average of 27.67 for the Insurance industry and a significant discount compared to the S&P 500 average of 25.16. Conducting a second comparison, its price-to-book ratio of 1.11 indicates a significant discount versus the S&P 500 average of 2.79 and a discount versus the industry average of 1.56. 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 10.73 Peers 27.67   VR 8.18 Peers 13.95

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 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
VR 12.87 Peers 16.47   VR NM Peers 1.14

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 1.11 Peers 1.56   VR 3.06 Peers -6.60

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 1.75 Peers 1.36   VR 2.10 Peers 9.31

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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