Western Gas Partners LP

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WES : NYSE : Basic Materials
$53.2 0.0 | 0.0%
Today's Range: 52.9 - 53.91
Avg. Daily Volume: 464100.0
07/21/17 - 4:02 PM ET

Financial Analysis


WESTERN GAS PARTNERS LP's gross profit margin for the first quarter of its fiscal year 2017 has decreased 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. WESTERN GAS PARTNERS LP has weak liquidity. Currently, the Quick Ratio is 0.99 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 8.77% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)516.19383.14
EBITDA ($mil)228.12208.83
EBIT ($mil)-6.32137.22
Net Income ($mil)101.89116.06


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)122.31108.48
Total Assets ($mil)7632.847360.56
Total Debt ($mil)3129.63214.54
Equity ($mil)4005.013681.96


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin46.6557.45
EBITDA Margin44.1954.5
Operating Margin-1.2235.81
Sales Turnover0.250.23
Return on Assets7.563.75
Return on Equity11.847.45
Debt Q1 FY17 Q1 FY16
Current Ratio1.021.12
Debt/Capital0.440.47
Interest Expense36.3233.89
Interest Coverage-0.174.05


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)154.17142.4
Div / share0.860.8
EPS0.010.31
Book value / share25.9825.86
Institutional Own % n/a n/a
Avg Daily Volume460057.0299361.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 55.33 for the Oil, Gas & Consumable Fuels industry and a significant premium compared to the S&P 500 average of 24.66. To use another comparison, its price-to-book ratio of 2.05 indicates a discount versus the S&P 500 average of 3.07 and a significant discount versus the industry average of 79.95. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, WESTERN GAS PARTNERS LP proves to trade 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
WES 36.69 Peers 55.33   WES 8.86 Peers 15.52

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

WES is trading at a significant 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.

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 19.21 Peers 58.89   WES 7.18 Peers 0.55

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.

 

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.

WES 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
WES 2.05 Peers 79.95   WES 3725.00 Peers 95.84

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 4.23 Peers 2.26   WES 14.08 Peers 7.37

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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