At the moment, the debt-to-equity of Nielsen Holdings plc (NYSE:NLSN) is high, standing at 198.85, a figure that is higher than the 45.02 average recorded by the industry. This means that the company is currently holding a debt level at 8.61 B. NLSN shares have a strong debt-to-equity ratio but their quick ratio which reads 1.10 is strong and might cause problems for them later in the future.
Even though there was a drop of -2.50% in revenue, the company failed to succeed in outperforming the industry average of 9.49%. For the most recent quarter, the net income has dropped by -34.25%. This weakness in their income has affected them and thus increased their earnings to $455.00 M. The -2.50% yoy growth of NLSN’s revenue has gone down that of the industry average by -4.83%. For the past 12 months, Nielsen Holdings plc revenue has gone up by 2.33%. The sustained growth in their revenue has helped boost their earnings per share.
Nielsen Holdings plc (NLSN) has seen their earnings per share increased to $0.27 during the last quarter in comparison to the same quarter last year. They have recorded a 33.64% growing earnings per share earnings. They have recorded a 33.64% growing earnings per share earnings. Analysts expect increase in earnings is also on the cards next quarter with an average estimate at $0.25. In the fiscal year 2018, Nielsen Holdings plc overcame its bottom line by hitting earning $1.20 per share compared to the $1.39 in 2017.
The 12-month return on equity has significantly fallen to 10.27 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Technology sector, the industry average is 10.92 while 14.51 is of the sector.
NLSN total operating cash flow had jumped to $387 billion compared to $242 billion in the same quarter last year. Also, looking at the price to cash flow of the company and the industry average, the 8.25 ratio of the stock is lower than the industry’s 15.83.
Nielsen Holdings plc (NYSE:NLSN) has a price-to-earnings ratio of 21.56 which is lower than the 46.95 industry average at the moment. In addition to their unfavorable P/E ratio, Nielsen Holdings plc has maintained a gross margin of 57.21. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is 2.64 when compared to 5.19 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, Nielsen Holdings plc ROE is above 14.51 that of both the sector average.
The operating profit margin for Nielsen Holdings plc (NLSN) is 15.91%, a figure which is considered to be weak. It has gone 10.26 from the 17.43 over the past 5 years. In addition to this, their operating margin is 5.65 higher than the industry average.
The net profit margin which stood at 7.87 on average in the past 5 years has dropped to 6.62 in the last 12 months. Added to that, this ratio has missed the industry net margin that stands at 8.48.
Analysts meanwhile rate Nielsen Holdings plc (NYSE:NLSN) as a buy. Still some above discussed indicators of the $9.09B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the NLSN shares to either perform positively or negatively when compared to other stocks. The primary strengths of Nielsen Holdings plc can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.