WebMD Health Corp

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WBMD : NASDAQ : Technology
$66.3 up 0.04 | 0.06%
Today's Range: 66.25 - 66.32
Avg. Daily Volume: 1189600.0
08/18/17 - 3:29 PM ET

Financial Analysis

WEBMD HEALTH CORP's gross profit margin for the second quarter of its fiscal year 2017 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 2.08 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 89.37% 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 FY17 Q2 FY16
Net Sales ($mil)176.02167.58
EBITDA ($mil)45.0542.2
EBIT ($mil)37.4434.53
Net Income ($mil)18.9117.78

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1110.091018.21
Total Assets ($mil)1786.031515.6
Total Debt ($mil)1046.841042.39
Equity ($mil)505.81267.1

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin59.860.74
EBITDA Margin25.5925.18
Operating Margin21.2720.6
Sales Turnover0.40.44
Return on Assets4.984.89
Return on Equity17.627.76
Debt Q2 FY17 Q2 FY16
Current Ratio2.126.54
Interest Expense7.045.27
Interest Coverage5.326.56

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)37.2138.25
Div / share0.00.0
Book value / share13.596.98
Institutional Own % n/a n/a
Avg Daily Volume1183100.0726672.0


BUY. The current P/E ratio indicates a discount compared to an average of 41.01 for the Internet Software & Services industry and a premium compared to the S&P 500 average of 24.34. To use another comparison, its price-to-book ratio of 4.88 indicates a significant premium versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 9.68. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, WEBMD HEALTH CORP proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WBMD 34.34 Peers 41.01   WBMD 12.23 Peers 36.30

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
WBMD 31.87 Peers 22.33   WBMD 8.46 Peers 0.33

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 significant 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WBMD 4.88 Peers 9.68   WBMD 15.56 Peers 27.30

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

WBMD is trading at a significant discount to its peers.


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

However, WBMD 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
WBMD 3.48 Peers 10.18   WBMD 5.68 Peers 32.09

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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