DEER CONSUMER PRODUCTS INC's gross profit margin for the fourth quarter of its fiscal year 2011 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. DEER CONSUMER PRODUCTS INC is extremely liquid. Currently, the Quick Ratio is 2.29 which clearly shows the ability to cover any short-term cash needs. DEER managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 28.97% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
| Income Statement | Q4 FY11 | Q4 FY10 |
|---|---|---|
| Net Sales ($mil) | 73.95 | 62.23 |
| EBITDA ($mil) | 17.57 | 13.95 |
| EBIT ($mil) | 16.97 | 13.5 |
| Net Income ($mil) | 13.42 | 11.03 |
| Balance Sheet | Q4 FY11 | Q4 FY10 |
|---|---|---|
| Cash & Equiv. ($mil) | 14.09 | 35.3 |
| Total Assets ($mil) | 204.4 | 188.64 |
| Total Debt ($mil) | 0.69 | 8.36 |
| Equity ($mil) | 185.38 | 143.74 |
| Profitability | Q4 FY11 | Q4 FY10 |
|---|---|---|
| Gross Profit Margin | 33.07 | 29.6 |
| EBITDA Margin | 23.76 | 22.42 |
| Operating Margin | 22.95 | 21.69 |
| Sales Turnover | 1.11 | 0.93 |
| Return on Assets | 19.47 | 16.09 |
| Return on Equity | 21.47 | 21.11 |
| Debt | Q4 FY11 | Q4 FY10 |
|---|---|---|
| Current Ratio | 5.76 | 2.61 |
| Debt/Capital | 0.0 | 0.06 |
| Interest Expense | 0.1 | 0.06 |
| Interest Coverage | 164.77 | 210.86 |
| Share Data | Q4 FY11 | Q4 FY10 |
|---|---|---|
| Shares outstanding (mil) | 33.59 | 33.59 |
| Div / share | 0.05 | 0.0 |
| EPS | 0.4 | 0.33 |
| Book value / share | 5.52 | 4.28 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 213400.0 | 89403.0 |
HOLD. DEER CONSUMER PRODUCTS INC's P/E ratio indicates a significant discount compared to an average of 37.89 for the Household Durables industry and a significant discount compared to the S&P 500 average of 15.19. For additional comparison, its price-to-book ratio of 0.52 indicates a significant discount versus the S&P 500 average of 2.12 and a significant discount versus the industry average of 2.49. 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, DEER CONSUMER PRODUCTS INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DEER 2.45 | Peers 37.89 | DEER 16.26 | Peers 11.41 | |||||||||||||||||||||
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Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. DEER is trading at a significant discount to its peers. |
Premium. 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. DEER is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| DEER NA | Peers 26.52 | DEER 0.24 | Peers 0.51 | |||||||||||||||||||||
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Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. DEER is trading at a significant discount to its peers. |
Discount. 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. DEER trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
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| DEER 0.52 | Peers 2.49 | DEER 29.67 | Peers -135.91 | |||||||||||||||||||||
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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. DEER 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. DEER is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| DEER 0.43 | Peers 0.96 | DEER 28.94 | Peers 3.30 | |||||||||||||||||||||
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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. DEER is trading at a significant discount to its industry on this measurement. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. DEER has a sales growth rate that significantly exceeds its peers. |
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