ALON USA ENERGY INC's gross profit margin for the second quarter of its fiscal year 2014 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. ALON USA ENERGY INC has weak liquidity. Currently, the Quick Ratio is 0.81 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.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.99% 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||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||1723.78||1658.06|
|Net Income ($mil)||-7.52||11.5|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||197.15||134.47|
|Total Assets ($mil)||2234.11||2246.67|
|Total Debt ($mil)||643.71||529.76|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||5.5||6.48|
|Return on Assets||-2.21||5.83|
|Return on Equity||-8.2||20.1|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||69.21||62.9|
|Div / share||0.06||0.22|
|Book value / share||8.85||10.25|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||828868.0||517432.0|
HOLD. 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. To use another comparison, its price-to-book ratio of 1.79 indicates a discount versus the S&P 500 average of 2.72 and a significant discount versus the industry average of 14.47. 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, ALON USA ENERGY INC proves to trade at a discount to investment alternatives within the industry.
|ALJ NM||Peers 24.32||ALJ 20.88||Peers 20.65|
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.
ALJ's P/E is negative making this valuation measure meaningless.
Average. 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.
ALJ is trading at a valuation on par to its peers.
|ALJ 24.34||Peers 18.25||ALJ NA||Peers 1.73|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
ALJ 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.
|ALJ 1.79||Peers 14.47||ALJ -139.19||Peers 31.27|
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.
ALJ 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, ALJ is expected to significantly trail its peers on the basis of its earnings growth rate.
|ALJ 0.15||Peers 2.55||ALJ -6.64||Peers 10.50|
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.
ALJ 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.
ALJ significantly trails its peers on the basis of sales growth
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