ALCATEL-LUCENT's gross profit margin for the second 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 average liquidity. Currently, the Quick Ratio is 1.05 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 25.28% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||3981.74||4463.17|
|Net Income ($mil)||-63.21||-407.33|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||6443.67||8483.69|
|Total Assets ($mil)||25589.51||30380.85|
|Total Debt ($mil)||6275.24||8713.69|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||39.43||36.69|
|Return on Assets||0.87||-2.28|
|Return on Equity||11.94||-19.26|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||2794.34||2766.17|
|Div / share||0.0||0.0|
|Book value / share||0.98||1.32|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4269239.0||1.1102625E7|
HOLD. ALCATEL-LUCENT's P/E ratio indicates a premium compared to an average of 22.65 for the Communications Equipment industry and a premium compared to the S&P 500 average of 19.38. To use another comparison, its price-to-book ratio of 3.68 indicates a premium versus the S&P 500 average of 2.58 and a discount versus the industry average of 3.84. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.
|ALU 27.62||Peers 22.65||ALU 16.12||Peers 30.35|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
ALU is trading at a premium to 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.
ALU is trading at a significant discount to its peers.
|ALU 13.30||Peers 18.09||ALU NM||Peers 1.27|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
ALU 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.
ALU's negative PEG ratio makes this valuation measure meaningless.
|ALU 3.68||Peers 3.84||ALU 148.14||Peers 26.37|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
ALU is expected to have an earnings growth rate that significantly exceeds its peers.
|ALU 0.68||Peers 2.96||ALU -22.14||Peers 6.24|
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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