uploads/2015/10/hele-npm.jpg

How Does Helen of Troy Compare to Its Peers?

By

Updated

Helen of Troy and its peers

An analysis of Helen of Troy’s income statement in 2Q16 follows:

  • The net profit margins of Helen of Troy (HELE), Procter & Gamble (PG), Newell Rubbermaid (NWL), Jarden (JAH), and Spectrum Brands Holdings (SPB) are 6.6%, 3.6%, 9.5%, 4.3%, and 3.6%, respectively.

  • The EPS (earnings per share) of Helen of Troy, Procter & Gamble, Newell Rubbermaid, Jarden, and Spectrum Brands are $0.84, $0.19, $0.55, $0.44, and $0.79, respectively.

An analysis of Helen of Troy’s balance sheet in 2Q16 follows:

  • The current ratios of Helen of Troy, Procter & Gamble, Newell Rubbermaid, Jarden, and Spectrum Brands are 2, 1, 1.2, 2.1, and 2.3, respectively.

An analysis of Helen of Troy’s valuation follows:

  • The PE (price-to-earnings) ratios of Helen of Troy, Procter & Gamble, Newell Rubbermaid, Jarden, and Spectrum Brands are 20.3x, 24.5x, 30.7x, 45.2x, and 30.5x, respectively.
  • The PBV (price-to-book value) ratios of Helen of Troy, Procter & Gamble, Newell Rubbermaid, Jarden, and Spectrum Brands are 2.9x, 3.3x, 6.4x, 3.7x, and 3.3x, respectively.

According to the above findings, the peers are way ahead of Helen of Troy based on the PE ratio and PBV ratio. However, Helen of Troy outperformed its peers based on the net profit margin and EPS.

Article continues below advertisement

ETFs that invest in Helen of Troy 

The SPDR S&P Homebuilders ETF (XHB) invests 2.9% of its holdings in Helen of Troy. XHB tracks a broad-based and equal-weighted index of US companies involved in the homebuilding industry.

The PowerShares S&P SmallCap Consumer Discretionary Portfolio ETF (PSCD) invests 2.4% of its holdings in Helen of Troy. PSCD tracks a cap-weighted index of consumer staples stocks selected from the S&P SmallCap 600.

The PowerShares DWA Consumer Staples Momentum Portfolio (PSL) invests 1.7% of its holdings in Helen of Troy. PSL tracks an index of US consumer cyclical firms selected and weighted by price momentum.

Comparing Helen of Troy and its ETFs

An analysis of Helen of Troy’s price movement follows:

  • The YTD (year-to-date) price movements of Helen of Troy, PSCD, and PSL are 45.7%, -2.1%, and 9.7%, respectively.

An analysis of Helen of Troy’s valuation follows:

  • The PE ratios of Helen of Troy, XHB, PSCD, and PSL are 20.3x, 19.1x, 23.4x, and 26.2x, respectively.
  • The PBV ratios of Helen of Troy, XHB, PSCD, and PSL are 2.9x, 2.8x, 2.4x, and 4.7x, respectively.

According to the above findings, the ETFs outperformed Helen of Troy based on the PE ratio. However, Helen of Troy is way ahead of its ETFs based on the price movement and PBV ratio.

Advertisement

More From Market Realist