CLIFFS NATURAL RESOURCES INC's gross profit margin for the first quarter of its fiscal year 2015 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly; although net income growth outperformed the average competitor in its industry, revenue growth did not. CLIFFS NATURAL RESOURCES INC has weak liquidity. Currently, the Quick Ratio is 0.72 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 133.15% 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 ($mil)||446.0||615.5|
|Net Income ($mil)||-759.8||-70.3|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||355.7||364.0|
|Total Assets ($mil)||2702.6||13202.8|
|Total Debt ($mil)||2880.9||3510.0|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||25.52||53.79|
|Return on Assets||-292.81||1.78|
|Return on Equity||0.0||5.36|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||153.25||153.18|
|Div / share||0.0||0.15|
|Book value / share||-13.02||39.3|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||9493906.0||9170623.0|
SELL. 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. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.
|CLF NM||Peers 79.69||CLF 3.62||Peers 8.57|
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.
CLF'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.
CLF is trading at a significant discount to its peers.
|CLF 50.30||Peers 23.24||CLF NA||Peers 5.72|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
CLF's ratio is negative making this valuation measure meaningless.
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.
|CLF NM||Peers 1.54||CLF -2356.86||Peers -54.44|
Neutral. 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.
CLF's P/B is negative making this valuation measure meaningless.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, CLF is expected to significantly trail its peers on the basis of its earnings growth rate.
|CLF 0.19||Peers 2.42||CLF -20.07||Peers 20.17|
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.
CLF 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.
CLF significantly trails its peers on the basis of sales growth
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