ALCATEL-LUCENT's gross profit margin for the first quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. ALCATEL-LUCENT has weak liquidity. Currently, the Quick Ratio is 1.00 which shows a lack of ability to cover 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 43.24% 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||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||3474.71||4082.13|
|Net Income ($mil)||-77.34||-100.57|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||6372.64||7333.5|
|Total Assets ($mil)||25684.95||28949.61|
|Total Debt ($mil)||6268.45||7533.26|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||38.89||36.79|
|Return on Assets||-0.46||-4.99|
|Return on Equity||-1.04||-36.98|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||2788.27||2763.88|
|Div / share||0.0||0.0|
|Book value / share||0.79||1.41|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||6433650.0||1.0476803E7|
HOLD. ALCATEL-LUCENT's P/E ratio indicates a significant premium compared to an average of 30.68 for the Communications Equipment industry and a significant premium compared to the S&P 500 average of 21.18. Conducting a second comparison, its price-to-book ratio of 4.48 indicates a significant premium versus the S&P 500 average of 2.82 and a premium versus the industry average of 4.43. 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, ALCATEL-LUCENT proves to trade at a premium to investment alternatives within the industry.
|ALU 356.00||Peers 30.68||ALU 27.20||Peers 28.21|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
ALU is trading at a significant premium to its peers.
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.
ALU is trading at a valuation on par to its peers.
|ALU 12.28||Peers 24.56||ALU NM||Peers 2.40|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
ALU is trading at a valuation on par with 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.
ALU's negative PEG ratio makes this valuation measure meaningless.
|ALU 4.48||Peers 4.43||ALU 101.63||Peers 133.43|
Average. 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.
ALU is trading at a valuation on par with its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, ALU is expected to trail its peers on the basis of its earnings growth rate.
|ALU 0.65||Peers 3.44||ALU -19.99||Peers 3.31|
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.
ALU 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.
ALU significantly trails its peers on the basis of sales growth
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