ADTRAN INC's gross profit margin for the third quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. ADTRAN INC has strong liquidity. Currently, the Quick Ratio is 1.83 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 15.66% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||158.08||162.89|
|Net Income ($mil)||7.07||11.33|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||125.77||114.0|
|Total Assets ($mil)||671.85||750.73|
|Total Debt ($mil)||28.8||30.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||46.92||50.29|
|Return on Assets||3.3||6.28|
|Return on Equity||4.65||8.32|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||49.56||54.32|
|Div / share||0.09||0.09|
|Book value / share||9.64||10.43|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||402737.0||616947.0|
HOLD. This stock's P/E ratio indicates a premium compared to an average of 37.43 for the Communications Equipment industry and a significant premium compared to the S&P 500 average of 21.93. To use another comparison, its price-to-book ratio of 1.69 indicates a discount versus the S&P 500 average of 2.77 and a significant discount versus the industry average of 3.73. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount.
|ADTN 38.74||Peers 37.43||ADTN 21.43||Peers 28.57|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
ADTN is trading at a valuation on par with its peers.
Discount. 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 discount to its peers.
|ADTN 25.03||Peers 19.07||ADTN NM||Peers 0.57|
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 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.
ADTN's negative PEG ratio makes this valuation measure meaningless.
|ADTN 1.69||Peers 3.73||ADTN -50.00||Peers 1.36|
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.
|ADTN 1.33||Peers 2.93||ADTN -6.22||Peers 4.04|
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.
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
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas