CLIFFS NATURAL RESOURCES INC's gross profit margin for the third quarter of its fiscal year 2014 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. CLIFFS NATURAL RESOURCES INC has very weak liquidity. Currently, the Quick Ratio is 0.39 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 99.46% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||1298.2||1546.6|
|Net Income ($mil)||-5879.6||117.2|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||244.0||298.8|
|Total Assets ($mil)||4811.2||13566.7|
|Total Debt ($mil)||3325.2||3562.7|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||-571.88||32.45|
|Return on Assets||-122.54||-9.19|
|Return on Equity||-19371.0||-22.78|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||153.16||153.12|
|Div / share||0.15||0.15|
|Book value / share||0.2||37.75|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.190414E7||5812247.0|
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. For additional comparison, its price-to-book ratio of 34.63 indicates a significant premium versus the S&P 500 average of 2.73 and a significant premium versus the industry average of 1.59. 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, CLIFFS NATURAL RESOURCES INC proves to trade at a premium to investment alternatives within the industry.
|CLF NM||Peers 23.16||CLF 1.88||Peers 9.34|
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 NM||Peers 18.67||CLF NA||Peers 0.57|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
CLF 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.
|CLF 34.63||Peers 1.59||CLF -311.00||Peers -91.45|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
CLF is trading at a significant premium to its peers.
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 0.22||Peers 2.37||CLF -15.00||Peers 1096.72|
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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