WebMD Health Corp

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WBMD : NASDAQ : Technology
$51.20 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 650,700
08/29/16 - 4:00 PM ET

Financial Analysis


WEBMD HEALTH CORP'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 has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. WEBMD HEALTH CORP is extremely liquid. Currently, the Quick Ratio is 6.45 which clearly shows the ability to cover any short-term cash needs. WBMD managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 204.91% 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 ($mil)167.58148.32
EBITDA ($mil)42.232.34
EBIT ($mil)34.5324.75
Net Income ($mil)17.7813.37


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)1018.21757.38
Total Assets ($mil)1515.61234.5
Total Debt ($mil)1042.39952.23
Equity ($mil)267.187.6


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin60.7459.27
EBITDA Margin25.1821.8
Operating Margin20.616.69
Sales Turnover0.440.48
Return on Assets4.894.0
Return on Equity27.7655.17
Debt Q2 FY16 Q2 FY15
Current Ratio6.542.21
Debt/Capital0.80.92
Interest Expense5.276.17
Interest Coverage6.564.01


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)38.2536.84
Div / share0.00.0
EPS0.390.32
Book value / share6.982.38
Institutional Own % n/a n/a
Avg Daily Volume672847.0893479.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 36.50 for the Internet Software & Services industry and a premium compared to the S&P 500 average of 25.13. For additional comparison, its price-to-book ratio of 7.36 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 5.47. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, WEBMD HEALTH CORP seems to be trading at a discount 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
WBMD 30.75 Peers 36.50   WBMD 12.79 Peers 23.62

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

WBMD is trading at a discount 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.

WBMD is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WBMD 25.18 Peers 24.00   WBMD 1.34 Peers 0.23

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

WBMD is trading at a premium to its peers.

 

Premium. 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.

WBMD trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WBMD 7.36 Peers 5.47   WBMD 43.96 Peers 35.72

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.

WBMD 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.

WBMD is expected to have an earnings growth rate that exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WBMD 2.93 Peers 8.78   WBMD 12.20 Peers 28.04

Discount. 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.

WBMD is trading at a significant discount to its industry on this measurement.

 

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

WBMD significantly trails its peers on the basis of sales growth

 

 

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