WGL Holdings Inc

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WGL : NYSE : Utilities
$82.84 | %
Today's Range: 82.71 - 82.99
Avg. Daily Volume: 239700.0
05/26/17 - 4:02 PM ET

Financial Analysis


WGL HOLDINGS INC's gross profit margin for the second quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. WGL HOLDINGS INC has very weak liquidity. Currently, the Quick Ratio is 0.36 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 10.03% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)841.75835.69
EBITDA ($mil)248.61207.58
EBIT ($mil)209.5174.41
Net Income ($mil)123.39106.62


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)7.469.87
Total Assets ($mil)6409.745659.57
Total Debt ($mil)2017.751523.56
Equity ($mil)1566.061423.29


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin29.5424.84
EBITDA Margin29.5324.83
Operating Margin24.8920.87
Sales Turnover0.370.42
Return on Assets2.732.85
Return on Equity11.1211.26
Debt Q2 FY17 Q2 FY16
Current Ratio0.70.94
Debt/Capital0.560.52
Interest Expense14.2613.0
Interest Coverage14.713.42


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)51.2250.34
Div / share0.490.46
EPS2.392.11
Book value / share30.5828.28
Institutional Own % n/a n/a
Avg Daily Volume240154.0622420.0

Valuation


BUY. WGL HOLDINGS INC's P/E ratio indicates a discount compared to an average of 29.21 for the Gas Utilities industry and a value on par with the S&P 500 average of 25.54. Conducting a second comparison, its price-to-book ratio of 2.71 indicates a discount versus the S&P 500 average of 3.06 and a premium versus the industry average of 2.55. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. The valuation analysis reveals that, WGL HOLDINGS INC 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
WGL 24.46 Peers 29.21   WGL 23.56 Peers 11.72

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

WGL is trading at a discount to its peers.

 

Premium. 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.

WGL is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WGL 22.69 Peers 24.48   WGL NM Peers 3.55

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

WGL is trading at a valuation on par with 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.

WGL'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
WGL 2.71 Peers 2.55   WGL 6.60 Peers 22.98

Average. 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.

WGL is trading at a valuation on par with its peers.

 

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

However, WGL is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WGL 1.81 Peers 2.10   WGL -0.27 Peers 5.64

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.

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

 

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

WGL significantly trails its peers on the basis of sales growth

 

 

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