ARCH COAL INC's gross profit margin for the fourth quarter of its fiscal year 2014 has significantly increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ARCH COAL INC is extremely liquid. Currently, the Quick Ratio is 2.34 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 25.96% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||745.19||719.39|
|Net Income ($mil)||-240.14||-371.21|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||983.19||1159.51|
|Total Assets ($mil)||8429.72||8990.19|
|Total Debt ($mil)||5160.37||5151.5|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||16.19||7.08|
|Return on Assets||-6.62||-7.13|
|Return on Equity||-33.47||-33.07|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||212.27||212.28|
|Div / share||0.0||0.03|
|Book value / share||7.86||10.61|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4600527.0||7887560.0|
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.13 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 12.05. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, ARCH COAL INC proves to trade at a discount to investment alternatives within the industry.
|ACI NM||Peers 21.65||ACI NM||Peers 8.31|
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.
ACI's P/E is negative making this valuation measure meaningless.
Neutral. 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.
ACI's P/CF is negative making the measure meaningless.
|ACI NM||Peers 632.30||ACI NA||Peers 0.66|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
ACI's ratio is negative making this valuation measure meaningless.
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.
|ACI 0.13||Peers 12.05||ACI 25.00||Peers 45.07|
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.
ACI 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, ACI is expected to significantly trail its peers on the basis of its earnings growth rate.
|ACI 0.08||Peers 2.27||ACI -2.57||Peers 10.04|
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.
ACI is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
ACI significantly trails its peers on the basis of sales growth
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