Western Gas Partners LP

Find Ratings Reports
WES : NYSE : Basic Materials
$51.60 | %
Today's Range: 50.37 - 51.68
Avg. Daily Volume: 319,500
09/23/16 - 4:02 PM ET

Financial Analysis


WESTERN GAS PARTNERS LP's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. WESTERN GAS PARTNERS LP has strong liquidity. Currently, the Quick Ratio is 1.58 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 10.86% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)428.66465.99
EBITDA ($mil)225.68221.95
EBIT ($mil)155.97151.77
Net Income ($mil)164.52132.34


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)157.7787.77
Total Assets ($mil)7504.16954.85
Total Debt ($mil)2961.152856.91
Equity ($mil)4092.473691.57


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin55.1949.65
EBITDA Margin52.6447.62
Operating Margin36.3932.57
Sales Turnover0.210.23
Return on Assets3.642.58
Return on Equity6.054.86
Debt Q2 FY16 Q2 FY15
Current Ratio1.591.28
Debt/Capital0.420.44
Interest Expense14.3730.3
Interest Coverage10.865.01


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)130.67128.58
Div / share0.820.73
EPS0.550.46
Book value / share31.3228.71
Institutional Own % n/a n/a
Avg Daily Volume315717.0366298.0

Valuation


BUY. WESTERN GAS PARTNERS LP's P/E ratio indicates a significant premium compared to an average of 77.95 for the Oil, Gas & Consumable Fuels industry and a significant premium compared to the S&P 500 average of 24.84. To use another comparison, its price-to-book ratio of 1.51 indicates a discount versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 14.73. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, WESTERN GAS PARTNERS LP seems to be trading at a premium 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
WES 946.40 Peers 77.95   WES 8.05 Peers 10.77

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

WES is trading at a significant 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.

WES 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
WES 18.34 Peers 45.38   WES NM 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.

WES is trading at a significant discount to its peers.

 

Neutral. 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.

WES's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WES 1.51 Peers 14.73   WES 138.46 Peers -229.88

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.

WES is trading at a significant discount to its peers.

 

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

WES 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
WES 3.94 Peers 2.51   WES -3.35 Peers -26.22

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.

WES is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

WES has a sales growth rate that significantly exceeds its peers.

 

 

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