WGL Holdings Inc

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WGL : NYSE : Utilities
$84.58 -0.12 | -0.14%
Today's Range: 84.47 - 84.78
Avg. Daily Volume: 246900.0
09/21/17 - 4:02 PM ET

Financial Analysis


WGL HOLDINGS INC's gross profit margin for the third 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. WGL HOLDINGS INC has very weak liquidity. Currently, the Quick Ratio is 0.30 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 7.65% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)474.36440.59
EBITDA ($mil)62.7256.24
EBIT ($mil)23.6322.46
Net Income ($mil)8.62.36


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)9.5716.53
Total Assets ($mil)6373.495742.81
Total Debt ($mil)2024.481552.62
Equity ($mil)1549.461439.25


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin13.2212.77
EBITDA Margin13.2212.76
Operating Margin4.985.1
Sales Turnover0.370.41
Return on Assets2.853.12
Return on Equity11.6412.37
Debt Q3 FY17 Q3 FY16
Current Ratio0.670.82
Debt/Capital0.570.52
Interest Expense25.0613.0
Interest Coverage0.941.73


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)51.2251.06
Div / share0.510.49
EPS0.160.04
Book value / share30.2528.19
Institutional Own % n/a n/a
Avg Daily Volume249040.0216108.0

Valuation


BUY. WGL HOLDINGS INC's P/E ratio indicates a discount compared to an average of 32.43 for the Gas Utilities industry and a value on par with the S&P 500 average of 24.88. Conducting a second comparison, its price-to-book ratio of 2.80 indicates a discount versus the S&P 500 average of 3.10 and a premium versus the industry average of 2.64. 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 24.13 Peers 32.43   WGL 19.99 Peers 11.57

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

WGL is trading at a significant 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 24.20 Peers 26.12   WGL NM Peers 2.95

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 2.80 Peers 2.64   WGL -0.85 Peers 16.07

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 1.82 Peers 2.16   WGL 1.19 Peers 9.83

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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