CHEMTURA CORP's gross profit margin for the third quarter of its fiscal year 2014 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. CHEMTURA CORP has weak liquidity. Currently, the Quick Ratio is 0.95 which shows a lack of 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 decreased by 18.07% 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||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||558.0||569.0|
|Net Income ($mil)||15.0||-40.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||145.0||311.0|
|Total Assets ($mil)||2379.0||2844.0|
|Total Debt ($mil)||804.0||894.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||24.01||21.79|
|Return on Assets||1.63||-4.78|
|Return on Equity||9.92||-1.6|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||87.8||96.47|
|Div / share||0.0||0.0|
|Book value / share||9.29||10.32|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1187217.0||723859.0|
HOLD. The current P/E ratio indicates a discount compared to an average of 37.11 for the Chemicals industry and a premium compared to the S&P 500 average of 20.19. To use another comparison, its price-to-book ratio of 2.66 indicates valuation on par with the S&P 500 average of 2.79 and a significant discount versus the industry average of 4.89. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, CHEMTURA CORP proves to trade at a discount to investment alternatives within the industry.
|CHMT 28.71||Peers 37.11||CHMT NM||Peers 15.69|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
CHMT is trading at a discount to its peers.
Neutral. 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.
CHMT's P/CF is negative making the measure meaningless.
|CHMT 21.28||Peers 19.82||CHMT NM||Peers 1.75|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
CHMT 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.
CHMT's negative PEG ratio makes this valuation measure meaningless.
|CHMT 2.66||Peers 4.89||CHMT 605.88||Peers 36.33|
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.
CHMT is trading at a significant discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
CHMT is expected to have an earnings growth rate that significantly exceeds its peers.
|CHMT 0.96||Peers 2.36||CHMT 2.11||Peers 3.96|
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.
CHMT 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.
CHMT significantly trails its peers on the basis of sales growth
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