ARC DOCUMENT SOLUTIONS INC's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. ARC DOCUMENT SOLUTIONS INC has average liquidity. Currently, the Quick Ratio is 1.19 which shows that technically this company has 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 remained virtually unchanged only decreasing by 1.85% 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||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||106.81||101.25|
|Net Income ($mil)||3.66||-0.45|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||24.84||37.05|
|Total Assets ($mil)||416.79||423.61|
|Total Debt ($mil)||205.63||213.39|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||40.5||39.45|
|Return on Assets||-1.53||-1.22|
|Return on Equity||-6.12||-4.88|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||46.72||46.32|
|Div / share||0.0||0.0|
|Book value / share||2.24||2.3|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||307930.0||341510.0|
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. For additional comparison, its price-to-book ratio of 4.24 indicates a premium versus the S&P 500 average of 2.75 and a premium versus the industry average of 4.17. 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, ARC DOCUMENT SOLUTIONS INC proves to trade at a premium to investment alternatives within the industry.
|ARC NM||Peers 59.92||ARC 10.10||Peers 14.07|
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.
ARC's P/E is negative making this valuation measure meaningless.
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.
ARC is trading at a significant discount to its peers.
|ARC 18.98||Peers 22.04||ARC NA||Peers 2.06|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
ARC 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.
|ARC 4.24||Peers 4.17||ARC -27.27||Peers 103.48|
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.
ARC 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, ARC is expected to significantly trail its peers on the basis of its earnings growth rate.
|ARC 1.06||Peers 1.99||ARC 3.63||Peers 5.99|
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.
ARC 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.
ARC significantly trails its peers on the basis of sales growth
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