WABCO Holdings Inc

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WBC : NYSE : Consumer Goods
$105.25 | %
Today's Range: 104.08 - 105.45
Avg. Daily Volume: 474600.0
01/20/17 - 4:02 PM ET

Financial Analysis


WABCO HOLDINGS INC's gross profit margin for the third 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 2.18 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.25% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)675.5643.6
EBITDA ($mil)111.8104.5
EBIT ($mil)86.179.3
Net Income ($mil)98.238.8


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)710.1589.2
Total Assets ($mil)2979.92598.5
Total Debt ($mil)761.4501.5
Equity ($mil)793.4775.9


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin35.4634.82
EBITDA Margin16.5516.23
Operating Margin12.7512.32
Sales Turnover0.931.01
Return on Assets8.679.29
Return on Equity32.5931.13
Debt Q3 FY16 Q3 FY15
Current Ratio3.023.01
Debt/Capital0.490.39
Interest Expense3.12.9
Interest Coverage27.7727.34


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)55.0957.35
Div / share0.00.0
EPS1.760.67
Book value / share14.413.53
Institutional Own % n/a n/a
Avg Daily Volume478204.0441415.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 28.87 for the Machinery industry and a discount compared to the S&P 500 average of 25.41. For additional comparison, its price-to-book ratio of 7.25 indicates a significant premium versus the S&P 500 average of 2.83 and a significant premium versus the industry average of 4.42. The current price-to-sales ratio is similar to the S&P 500 average, but it is above 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 22.88 Peers 28.87   WBC 14.20 Peers 14.08

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.

 

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 16.97 Peers 22.77   WBC 1.02 Peers 3.86

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 7.25 Peers 4.42   WBC 10.94 Peers -21.50

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 2.08 Peers 1.91   WBC 4.96 Peers -4.95

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.

 

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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