WGL Holdings Inc

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WGL : NYSE : Utilities
$82.89 | %
Today's Range: 82.59 - 83.0
Avg. Daily Volume: 554500.0
03/24/17 - 4:02 PM ET

Financial Analysis


WGL HOLDINGS INC's gross profit margin for the first quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. WGL HOLDINGS INC has very weak liquidity. Currently, the Quick Ratio is 0.32 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 11.41% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)609.49613.38
EBITDA ($mil)140.0148.92
EBIT ($mil)104.71117.51
Net Income ($mil)58.368.5


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)12.8815.78
Total Assets ($mil)6475.395500.26
Total Debt ($mil)2069.641498.46
Equity ($mil)1467.641317.28


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin22.9724.28
EBITDA Margin22.9624.27
Operating Margin17.1819.16
Sales Turnover0.360.46
Return on Assets2.452.48
Return on Equity10.7210.28
Debt Q1 FY17 Q1 FY16
Current Ratio0.770.78
Debt/Capital0.590.53
Interest Expense16.2412.76
Interest Coverage6.459.21


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)51.2149.83
Div / share0.490.46
EPS1.131.36
Book value / share28.6626.43
Institutional Own % n/a n/a
Avg Daily Volume548070.0319256.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 26.17 for the Gas Utilities industry and a value on par with the S&P 500 average of 26.33. For additional comparison, its price-to-book ratio of 2.88 indicates valuation on par with the S&P 500 average of 2.93 and a premium versus the industry average of 2.66. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, WGL HOLDINGS INC proves to trade 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
WGL 26.55 Peers 26.17   WGL 21.81 Peers 11.42

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

WGL is trading at a valuation on par with 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 22.02 Peers 21.70   WGL 4.63 Peers 3.24

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.

 

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.

WGL 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
WGL 2.88 Peers 2.66   WGL 15.18 Peers 2.00

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.

 

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

WGL 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
WGL 1.80 Peers 2.11   WGL -7.07 Peers -7.29

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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