WABCO Holdings Inc

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WBC : NYSE : Consumer Goods
$106.76 -0.30 | -0.28%
Today's Range: 106.13 - 107.29
Avg. Daily Volume: 623,600
08/31/16 - 4:02 PM ET

Financial Analysis


WABCO HOLDINGS INC'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. WABCO HOLDINGS INC is extremely liquid. Currently, the Quick Ratio is 2.23 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 9.58% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)732.1661.1
EBITDA ($mil)128.3112.2
EBIT ($mil)104.388.3
Net Income ($mil)75.165.8


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)643.8533.6
Total Assets ($mil)2804.52595.0
Total Debt ($mil)683.9501.8
Equity ($mil)740.3818.8


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin34.8735.15
EBITDA Margin17.5216.97
Operating Margin14.2513.36
Sales Turnover0.981.04
Return on Assets7.110.97
Return on Equity26.934.78
Debt Q2 FY16 Q2 FY15
Current Ratio2.963.06
Debt/Capital0.480.38
Interest Expense3.00.9
Interest Coverage34.7798.11


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)55.6657.85
Div / share0.00.0
EPS1.331.12
Book value / share13.314.15
Institutional Own % n/a n/a
Avg Daily Volume618253.0415490.0

Valuation


BUY. WABCO HOLDINGS INC's P/E ratio indicates a premium compared to an average of 26.28 for the Machinery industry and a premium compared to the S&P 500 average of 25.13. For additional comparison, its price-to-book ratio of 8.04 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 4.13. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, WABCO HOLDINGS INC proves to trade at a premium 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
WBC 30.80 Peers 26.28   WBC 13.62 Peers 18.42

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

WBC is trading at a 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.

WBC 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
WBC 16.96 Peers 22.22   WBC 1.44 Peers 7.31

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

WBC is trading at a discount to its peers.

 

Discount. 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.

WBC trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WBC 8.04 Peers 4.13   WBC -27.86 Peers -25.43

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

WBC is trading at a significant premium to its peers.

 

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

However, WBC 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
WBC 2.17 Peers 1.88   WBC 1.30 Peers -5.18

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.

WBC 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.

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

 

 

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