0.02 | 0.55%
CORINTHIAN COLLEGES INC's gross profit margin for the third quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. CORINTHIAN COLLEGES 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 company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has remained unchanged 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.
| Income Statement | Q3 FY13 | Q3 FY12 |
|---|---|---|
| Net Sales ($mil) | 400.17 | 407.86 |
| EBITDA ($mil) | 28.77 | 45.14 |
| EBIT ($mil) | 12.63 | 27.54 |
| Net Income ($mil) | -1.02 | 4.09 |
| Balance Sheet | Q3 FY13 | Q3 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 43.9 | 79.58 |
| Total Assets ($mil) | 996.17 | 1052.4 |
| Total Debt ($mil) | 30.67 | 98.27 |
| Equity ($mil) | 571.23 | 569.87 |
| Profitability | Q3 FY13 | Q3 FY12 |
|---|---|---|
| Gross Profit Margin | 43.13 | 44.86 |
| EBITDA Margin | 7.18 | 11.06 |
| Operating Margin | 3.15 | 6.75 |
| Sales Turnover | 1.62 | 1.52 |
| Return on Assets | -0.6 | -0.03 |
| Return on Equity | 3.61 | 3.03 |
| Debt | Q3 FY13 | Q3 FY12 |
|---|---|---|
| Current Ratio | 0.92 | 0.83 |
| Debt/Capital | 0.05 | 0.15 |
| Interest Expense | 1.34 | 2.39 |
| Interest Coverage | 9.45 | 11.51 |
| Share Data | Q3 FY13 | Q3 FY12 |
|---|---|---|
| Shares outstanding (mil) | 86.18 | 85.18 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.03 | 0.14 |
| Book value / share | 6.63 | 6.69 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1066237.0 | 880180.0 |
SELL. The current P/E ratio indicates a significant discount compared to an average of 21.89 for the Diversified Consumer Services industry and a discount compared to the S&P 500 average of 19.08. For additional comparison, its price-to-book ratio of 0.37 indicates a significant discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 4.92. 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, CORINTHIAN COLLEGES INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| COCO 9.68 | Peers 21.89 | COCO 2.44 | Peers 16.45 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. COCO 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. COCO is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| COCO 9.68 | Peers 34.65 | COCO NM | Peers 0.94 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. COCO is trading at a significant discount 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. COCO's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| COCO 0.37 | Peers 4.92 | COCO 19.04 | Peers -38.28 | |||||||||||||||||||||
|
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. COCO 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. COCO is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| COCO 0.13 | Peers 1.99 | COCO 0.72 | Peers 4.15 | |||||||||||||||||||||
|
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. COCO 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. COCO significantly trails its peers on the basis of sales growth |
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