0.10 | 0.45%
ADTRAN INC's gross profit margin for the first quarter of its fiscal year 2013 has decreased 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. ADTRAN INC is extremely liquid. Currently, the Quick Ratio is 3.10 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 5.66% 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.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 143.01 | 134.88 |
| EBITDA ($mil) | 10.23 | 21.34 |
| EBIT ($mil) | 6.56 | 18.25 |
| Net Income ($mil) | 7.89 | 12.96 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 247.88 | 198.07 |
| Total Assets ($mil) | 874.34 | 853.05 |
| Total Debt ($mil) | 46.0 | 47.0 |
| Equity ($mil) | 673.13 | 713.53 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 51.28 | 57.43 |
| EBITDA Margin | 7.15 | 15.82 |
| Operating Margin | 4.59 | 13.53 |
| Sales Turnover | 0.72 | 0.8 |
| Return on Assets | 4.82 | 13.74 |
| Return on Equity | 6.26 | 16.43 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 4.11 | 5.5 |
| Debt/Capital | 0.06 | 0.06 |
| Interest Expense | 0.58 | 0.59 |
| Interest Coverage | 11.3 | 31.03 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 62.31 | 63.9 |
| Div / share | 0.09 | 0.09 |
| EPS | 0.13 | 0.2 |
| Book value / share | 10.8 | 11.17 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 966708.0 | 1080062.0 |
HOLD. ADTRAN INC's P/E ratio indicates a significant premium compared to an average of 19.99 for the Communications Equipment industry and a significant premium compared to the S&P 500 average of 19.08. For additional comparison, its price-to-book ratio of 2.09 indicates a discount versus the S&P 500 average of 2.44 and a discount versus the industry average of 2.81. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ADTN 33.78 | Peers 19.99 | ADTN 16.03 | Peers 14.57 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. ADTN is trading at a significant premium to its peers. |
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. ADTN is trading at a premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| ADTN 25.43 | Peers 26.39 | ADTN NM | Peers 0.45 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. ADTN is trading at a 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. ADTN's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| ADTN 2.09 | Peers 2.81 | ADTN -62.78 | Peers 5.89 | |||||||||||||||||||||
|
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. ADTN 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, ADTN is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| ADTN 2.24 | Peers 3.32 | ADTN -8.21 | Peers 10.27 | |||||||||||||||||||||
|
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. ADTN 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. ADTN significantly trails its peers on the basis of sales growth |
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