Validus Holdings Ltd

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VR : NYSE : Financial
$52.615 -0.77 | -1.5%
Today's Range: 52.56 - 53.49
Avg. Daily Volume: 438500.0
08/17/17 - 3:59 PM ET

Financial Analysis


VALIDUS HOLDINGS LTD's gross profit margin for the second quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has increased by 8.92% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)695.2647.96
EBITDA ($mil)176.87133.86
EBIT ($mil)174.29132.45
Net Income ($mil)103.394.96


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)3866.83411.94
Total Assets ($mil)13951.1511818.24
Total Debt ($mil)1850.021154.23
Equity ($mil)4211.433866.26


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin40.5335.94
EBITDA Margin25.4420.65
Operating Margin25.0720.44
Sales Turnover0.180.21
Return on Assets2.163.36
Return on Equity6.9610.28
Debt Q2 FY17 Q2 FY16
Current Ratio0.00.0
Debt/Capital0.310.23
Interest Expense14.2114.17
Interest Coverage12.279.35


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)79.5280.77
Div / share0.380.35
EPS1.251.14
Book value / share52.9647.87
Institutional Own % n/a n/a
Avg Daily Volume455748.0389070.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 47.75 for the Insurance industry and a discount compared to the S&P 500 average of 24.31. Conducting a second comparison, its price-to-book ratio of 1.01 indicates a significant discount versus the S&P 500 average of 3.03 and a discount versus the industry average of 1.87. 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 14.73 Peers 47.75   VR 10.72 Peers 12.13

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 12.88 Peers 16.15   VR NM Peers 1.74

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 1.01 Peers 1.87   VR -22.93 Peers 200.69

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.

 

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

However, VR 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
VR 1.73 Peers 1.50   VR 1.41 Peers 12.89

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 premium to its industry on this measurement.

 

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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