Validus Holdings Ltd

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VR : NYSE : Financial
$49.76 up 0.26 | 0.53%
Today's Range: 49.32 - 49.86
Avg. Daily Volume: 396,100
07/29/16 - 11:01 AM ET

Financial Analysis


VALIDUS HOLDINGS 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.

During the same period, stockholders' equity ("net worth") has increased by 5.72% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)647.96573.97
EBITDA ($mil)0.0111.65
EBIT ($mil)132.45110.23
Net Income ($mil)94.9665.79


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)3034.471911.78
Total Assets ($mil)11818.2411425.3
Total Debt ($mil)1154.232166.71
Equity ($mil)3866.263656.93


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin35.9435.45
EBITDA Margin0.019.45
Operating Margin20.4419.21
Sales Turnover0.210.2
Return on Assets3.363.54
Return on Equity10.2811.06
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.230.37
Interest Expense14.1718.68
Interest Coverage9.355.9


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)80.7783.3
Div / share0.350.32
EPS1.140.75
Book value / share47.8743.9
Institutional Own % n/a n/a
Avg Daily Volume412363.0458524.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 16.35 for the Insurance industry and a significant discount compared to the S&P 500 average of 25.10. Conducting a second comparison, its price-to-book ratio of 1.03 indicates a significant discount versus the S&P 500 average of 2.81 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 10.47 Peers 16.35   VR NA Peers 12.64

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.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
VR 11.21 Peers 14.87   VR NM Peers 1.80

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 1.03 Peers 1.56   VR 4.20 Peers 39.40

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 1.64 Peers 1.44   VR 5.51 Peers -2.07

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.

 

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

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

 

 

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