WGL Holdings Inc

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WGL : NYSE : Utilities
$63.45 up 0.57 | 0.91%
Today's Range: 62.95 - 63.92
Avg. Daily Volume: 242,200
08/29/16 - 2:33 PM ET

Financial Analysis


WGL HOLDINGS INC's gross profit margin for the third quarter of its fiscal year 2016 has significantly 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. 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 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 11.17% 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 FY16 Q3 FY15
Net Sales ($mil)440.59441.17
EBITDA ($mil)56.2413.13
EBIT ($mil)22.46-17.57
Net Income ($mil)2.36-15.36


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)16.5366.05
Total Assets ($mil)5742.815008.47
Total Debt ($mil)1552.621151.49
Equity ($mil)1439.251294.55


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin12.772.98
EBITDA Margin12.762.97
Operating Margin5.1-3.98
Sales Turnover0.410.53
Return on Assets3.123.37
Return on Equity12.3712.95
Debt Q3 FY16 Q3 FY15
Current Ratio0.820.96
Debt/Capital0.520.47
Interest Expense13.013.14
Interest Coverage1.73-1.34


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)51.0649.73
Div / share0.490.46
EPS0.04-0.32
Book value / share28.1926.03
Institutional Own % n/a n/a
Avg Daily Volume240512.0269123.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 35.59 for the Gas Utilities industry and a discount compared to the S&P 500 average of 25.13. For additional comparison, its price-to-book ratio of 2.28 indicates a discount versus the S&P 500 average of 2.82 and a discount versus the industry average of 3.75. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, WGL HOLDINGS INC 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
WGL 18.17 Peers 35.59   WGL 14.52 Peers 10.91

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 19.79 Peers 24.70   WGL 0.90 Peers 2.20

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

WGL is trading at a discount to its peers.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WGL 2.28 Peers 3.75   WGL 6.30 Peers -24.75

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.

WGL 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.

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 1.39 Peers 2.31   WGL -11.08 Peers -16.20

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 significant discount to its industry on this measurement.

 

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

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

 

 

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