AIRGAS INC's gross profit margin for the second 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. AIRGAS INC has weak liquidity. Currently, the Quick Ratio is 0.81 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 17.50% 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 ($mil)||1357.76||1281.97|
|Net Income ($mil)||98.31||94.98|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||65.71||111.27|
|Total Assets ($mil)||5904.77||5626.45|
|Total Debt ($mil)||2440.32||2492.49|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||55.75||56.06|
|Return on Assets||6.06||6.19|
|Return on Equity||17.89||20.46|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||74.61||73.64|
|Div / share||0.55||0.48|
|Book value / share||26.84||23.14|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||460560.0||403354.0|
BUY. This stock's P/E ratio indicates a significant discount compared to an average of 36.83 for the Chemicals industry and a premium compared to the S&P 500 average of 19.74. To use another comparison, its price-to-book ratio of 4.21 indicates a premium versus the S&P 500 average of 2.73 and a discount versus the industry average of 4.73. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, AIRGAS INC proves to trade at a discount to investment alternatives within the industry.
|ARG 23.77||Peers 36.83||ARG 11.94||Peers 15.20|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
ARG is trading at a significant discount 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.
ARG is trading at a discount to its peers.
|ARG 19.81||Peers 19.20||ARG 3.01||Peers 1.70|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
ARG is trading at a premium to its peers.
Premium. 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.
ARG trades at a significant premium to its peers.
|ARG 4.21||Peers 4.73||ARG 3.48||Peers 36.61|
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.
ARG is trading at a discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, ARG is expected to significantly trail its peers on the basis of its earnings growth rate.
|ARG 1.63||Peers 2.32||ARG 2.97||Peers 3.97|
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.
ARG 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.
ARG significantly trails its peers on the basis of sales growth
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