ADVISORY BOARD CO's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. ADVISORY BOARD CO has weak liquidity. Currently, the Quick Ratio is 0.92 which 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.
At the same time, stockholders' equity ("net worth") has greatly increased by 79.51% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||200.24||144.22|
|Net Income ($mil)||1.86||6.49|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||56.08||29.29|
|Total Assets ($mil)||2102.49||1022.58|
|Total Debt ($mil)||557.31||0.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||48.85||48.36|
|Return on Assets||-0.86||0.0|
|Return on Equity||-3.2||0.0|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||41.89||36.0|
|Div / share||0.0||0.0|
|Book value / share||13.49||8.74|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||254851.0||399997.0|
HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 3.25 indicates a premium versus the S&P 500 average of 2.48 and a significant discount versus the industry average of 4.85. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. After reviewing these and other key valuation criteria, ADVISORY BOARD CO proves to trade at a discount to investment alternatives within the industry.
|ABCO NM||Peers 27.27||ABCO 16.98||Peers 14.59|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
ABCO's P/E is negative making this valuation measure meaningless.
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.
ABCO is trading at a premium to its peers.
|ABCO 26.07||Peers 19.29||ABCO NA||Peers 0.50|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
ABCO is trading at a significant premium to its peers.
Neutral. 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.
Ratio not available.
|ABCO 3.25||Peers 4.85||ABCO -254.83||Peers 21.65|
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.
ABCO is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, ABCO is expected to significantly trail its peers on the basis of its earnings growth rate.
|ABCO 2.57||Peers 3.00||ABCO 68.58||Peers 8.08|
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.
ABCO is trading at a discount to its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
ABCO has a sales growth rate that significantly exceeds its peers.
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