WGL Holdings Inc

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WGL : NYSE : Utilities
$71.04 -0.47 | -0.66%
Today's Range: 70.90 - 71.88
Avg. Daily Volume: 268,200
07/26/16 - 4:02 PM ET

Financial Analysis


WGL HOLDINGS INC's gross profit margin for the second 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 0.42 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 6.86% 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 FY16 Q2 FY15
Net Sales ($mil)835.691001.73
EBITDA ($mil)207.58172.99
EBIT ($mil)174.41142.89
Net Income ($mil)106.6281.79


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)9.879.29
Total Assets ($mil)5659.575150.36
Total Debt ($mil)1523.561170.47
Equity ($mil)1423.291331.86


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin24.8417.27
EBITDA Margin24.8317.26
Operating Margin20.8714.26
Sales Turnover0.420.52
Return on Assets2.853.35
Return on Equity11.2612.87
Debt Q2 FY16 Q2 FY15
Current Ratio0.941.03
Debt/Capital0.520.47
Interest Expense13.013.25
Interest Coverage13.4210.78


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)50.3449.73
Div / share0.460.44
EPS2.111.63
Book value / share28.2826.78
Institutional Own % n/a n/a
Avg Daily Volume270020.0255358.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 27.70 for the Gas Utilities industry and a discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 2.51 indicates valuation on par with the S&P 500 average of 2.81 and a discount versus the industry average of 3.63. The price-to-sales ratio is below the S&P 500 average and is well below 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 22.34 Peers 27.70   WGL 10.59 Peers 10.14

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.

 

Average. 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 valuation on par 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 21.86 Peers 27.24   WGL 1.22 Peers 2.48

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 2.51 Peers 3.63   WGL -7.02 Peers -36.45

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 1.52 Peers 2.31   WGL -11.94 Peers -17.09

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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