WABCO Holdings Inc

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WBC : NYSE : Consumer Goods
$117.185 up 0.92 | 0.8%
Today's Range: 115.42 - 117.638
Avg. Daily Volume: 350500.0
03/28/17 - 3:59 PM ET

Financial Analysis


WABCO HOLDINGS INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. WABCO HOLDINGS INC is extremely liquid. Currently, the Quick Ratio is 3.02 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 10.84% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)713.7670.6
EBITDA ($mil)123.9113.9
EBIT ($mil)97.989.2
Net Income ($mil)63.198.7


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)991.2597.3
Total Assets ($mil)3056.02589.9
Total Debt ($mil)959.1503.7
Equity ($mil)701.4786.7


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin35.034.61
EBITDA Margin17.3616.98
Operating Margin13.7213.3
Sales Turnover0.921.01
Return on Assets7.2910.62
Return on Equity31.7934.98
Debt Q4 FY16 Q4 FY15
Current Ratio3.532.98
Debt/Capital0.580.39
Interest Expense3.64.3
Interest Coverage27.1920.74


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)54.4956.76
Div / share0.00.0
EPS1.151.71
Book value / share12.8713.86
Institutional Own % n/a n/a
Avg Daily Volume348555.0544865.0

Valuation


HOLD. WABCO HOLDINGS INC's P/E ratio indicates a premium compared to an average of 28.29 for the Machinery industry and a premium compared to the S&P 500 average of 26.33. For additional comparison, its price-to-book ratio of 9.02 indicates a significant premium versus the S&P 500 average of 2.93 and a significant premium versus the industry average of 4.86. 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 29.02 Peers 28.29   WBC 15.60 Peers 15.54

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

WBC is trading at a valuation on par with its peers.

 

Average. 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 valuation on par 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 16.92 Peers 22.43   WBC 0.60 Peers 1.85

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 9.02 Peers 4.86   WBC -15.26 Peers -12.52

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 2.25 Peers 1.93   WBC 6.94 Peers -1.99

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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