WABCO Holdings Inc

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WBC : NYSE : Consumer Goods
$118.91 up 0.68 | 0.58%
Today's Range: 118.675 - 119.99
Avg. Daily Volume: 367700.0
05/22/17 - 3:59 PM ET

Financial Analysis


WABCO HOLDINGS INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. WABCO HOLDINGS INC is extremely liquid. Currently, the Quick Ratio is 2.92 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.38% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)747.3688.7
EBITDA ($mil)134.0121.9
EBIT ($mil)109.499.6
Net Income ($mil)80.7-13.4


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)986.1682.2
Total Assets ($mil)3136.62742.6
Total Debt ($mil)967.5635.9
Equity ($mil)760.9743.2


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin35.0234.98
EBITDA Margin17.9317.7
Operating Margin14.6414.46
Sales Turnover0.910.97
Return on Assets10.16.92
Return on Equity41.6725.55
Debt Q1 FY17 Q1 FY16
Current Ratio3.473.06
Debt/Capital0.560.46
Interest Expense3.93.0
Interest Coverage28.0533.2


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)54.156.25
Div / share0.00.0
EPS1.48-0.24
Book value / share14.0613.21
Institutional Own % n/a n/a
Avg Daily Volume370735.0420831.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 26.76 for the Machinery industry and a discount compared to the S&P 500 average of 25.02. For additional comparison, its price-to-book ratio of 8.23 indicates a significant premium versus the S&P 500 average of 3.00 and a significant premium versus the industry average of 4.82. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WBC 20.24 Peers 26.76   WBC 17.06 Peers 15.45

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

WBC is trading at a discount to its peers.

 

Premium. 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 premium 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 17.05 Peers 21.57   WBC 0.41 Peers 2.50

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

WBC is trading at a valuation on par with 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 8.23 Peers 4.82   WBC 75.46 Peers 23.25

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.

 

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

WBC 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
WBC 2.18 Peers 1.98   WBC 7.68 Peers 12.53

Average. 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 valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

WBC significantly trails its peers on the basis of sales growth

 

 

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