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
Interest Expense3.64.3
Interest Coverage27.1920.74

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


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.

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.

1 2 3 4 5
premium   discount
  Price to
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.

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.

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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