WABCO Holdings IncFind Ratings Reports
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 ($mil)||732.1||661.1|
|Net Income ($mil)||75.1||65.8|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||643.8||533.6|
|Total Assets ($mil)||2804.5||2595.0|
|Total Debt ($mil)||683.9||501.8|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||34.87||35.15|
|Return on Assets||7.1||10.97|
|Return on Equity||26.9||34.78|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||55.66||57.85|
|Div / share||0.0||0.0|
|Book value / share||13.3||14.15|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||604396.0||382588.0|
BUY. WABCO HOLDINGS INC's P/E ratio indicates a premium compared to an average of 25.48 for the Machinery industry and a premium compared to the S&P 500 average of 24.84. For additional comparison, its price-to-book ratio of 7.98 indicates a significant premium versus the S&P 500 average of 2.78 and a significant premium versus the industry average of 4.02. 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.
|WBC 30.59||Peers 25.48||WBC 13.52||Peers 18.30|
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.
|WBC 16.85||Peers 21.06||WBC 1.42||Peers 7.76|
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.
|WBC 7.98||Peers 4.02||WBC -27.86||Peers -25.61|
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.
|WBC 2.16||Peers 1.83||WBC 1.30||Peers -5.26|
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.