E-COMMERCE CH DANGDANG -ADR's gross profit margin for the second quarter of its fiscal year 2015 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. E-COMMERCE CH DANGDANG -ADR has very weak liquidity. Currently, the Quick Ratio is 0.43 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 virtually unchanged only decreasing by 3.09% 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||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||372.96||287.2|
|Net Income ($mil)||-3.42||4.65|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||275.27||262.8|
|Total Assets ($mil)||753.25||694.29|
|Total Debt ($mil)||0.0||0.0|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||15.49||20.87|
|Return on Assets||-0.51||0.5|
|Return on Equity||-4.0||3.47|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||80.91||80.69|
|Div / share||0.0||0.0|
|Book value / share||1.2||1.24|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||584840.0||2559073.0|
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 5.77 indicates a significant premium versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 18.85. 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, E-COMMERCE CH DANGDANG -ADR proves to trade at a discount to investment alternatives within the industry.
|DANG NM||Peers 631.70||DANG NA||Peers 28.21|
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.
DANG's P/E is negative making this valuation measure meaningless.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|DANG 6.78||Peers 274.69||DANG NA||Peers 0.84|
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.
DANG'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.
|DANG 5.77||Peers 18.85||DANG -225.00||Peers 149.07|
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.
DANG is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, DANG is expected to significantly trail its peers on the basis of its earnings growth rate.
|DANG 0.39||Peers 4.07||DANG 25.45||Peers 26.50|
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.
DANG is trading at a significant discount to its industry on this measurement.
Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.
DANG is keeping pace with its peers on the basis of sales growth.
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