The share price of Nielsen Holdings plc [NYSE: NLSN] inclined by $22.80, presently trading at $23.17. The company’s shares saw 12.86% gains compared to the lowest price in the period of the last 52 weeks, set at $20.53 recorded on 13/06/2019. The last few days have been benevolent to the share price as NLSN jumped by +2.48% during the last week, even though the stock is still down by -0.13% compared to 0.56 of all time high it touched on 06/13/19. However, the stock had a poor performance during the past 3 months, roughly losing -3.62%, while additionally dropping -26.35% during the last 12 months. Nielsen Holdings plc is said to have a 12-month price target set at $27.94. That means that the stock has a strong potential to acquire 4.77% increase from the current trading price.
Nielsen Holdings plc [NYSE:NLSN]: Analyst Rating and Earnings
Professional stock traders oftentimes make sure they verify what some leading Wall Street voices have to say about a potential buy. Currently, in relation to Nielsen Holdings plc [NLSN], the latest Wall Street average recommendation we can view is from the fiscal quarter that will be ending in the month of December. On average, stock market experts give NLSN an Outperform rating. Its stock price has been found in the range of 20.53 to 32.06. This is compared to its latest closing price of $22.80.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Nielsen Holdings plc [NLSN] is sitting at 2.06. This is compared to 1 month ago, when its average rating was 2.06.
For the quarter ending in Mar-19 Nielsen Holdings plc [NLSN] generated $1.56 billion in sales. That’s 0.21% lower than the average estimate of $1.57 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep on the lookout for this organization’s next scheduled financial results, which are expected to be made public on Thu 25 Jul (In 41 Days).
Fundamental Analysis of Nielsen Holdings plc [NLSN]
Now let’s turn to look at profitability: with a current Operating Margin for Nielsen Holdings plc [NLSN] sitting at +16.53 and its Gross Margin at +46.58, this company’s Net Margin is now -11.50%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 8.86, and its Return on Invested Capital has reached -4.60%. Its Return on Equity is -20.08, and its Return on Assets is -4.44. These metrics suggest that this Nielsen Holdings plc does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Nielsen Holdings plc [NLSN] has generated a Total Debt to Total Equity ratio of 294.59. Similarly, its Total Debt to Total Capital is 74.66, while its Total Debt to Total Assets stands at 55.25. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 290.83, and its Long-Term Debt to Total Capital is 73.70. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 9.10 and its Total Debt to EBITDA Value is 4.79. The Enterprise Value to Sales for this firm is now 2.47, and its Total Debt to Enterprise Value stands at 0.51. Nielsen Holdings plc [NLSN] has a Price to Book Ratio of 2.91, a Price to Cash Flow Ratio of 7.84.
Shifting the focus to workforce efficiency, Nielsen Holdings plc [NLSN] earns $141,630 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.43 and its Total Asset Turnover is 0.41. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.21 and its Current Ratio is 1.21. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Nielsen Holdings plc [NLSN] has 353.31M shares outstanding, amounting to a total market cap of $8.19B. Its stock price has been found in the range of 20.53 to 32.06. At its current price, it has moved down by -27.74% from its 52-week high, and it has moved up 12.86% from its 52-week low.
This stock’s Beta value is currently 0.93, which indicates that it is 1.71% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 45.23. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Nielsen Holdings plc [NLSN] a Reliable Buy?
Nielsen Holdings plc [NLSN] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.