DIAMOND FOODS INC's gross profit margin for the fourth quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. DIAMOND FOODS INC has weak liquidity. Currently, the Quick Ratio is 0.76 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 greatly increased by 70.22% 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||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||219.07||199.8|
|Net Income ($mil)||-1.86||-143.74|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||5.32||5.89|
|Total Assets ($mil)||1192.83||1172.32|
|Total Debt ($mil)||658.34||590.94|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||25.86||30.72|
|Return on Assets||-13.8||-13.64|
|Return on Equity||-58.03||-95.91|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||31.38||22.38|
|Div / share||0.0||0.0|
|Book value / share||9.04||7.45|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||355942.0||373891.0|
HOLD. 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. Conducting a second comparison, its price-to-book ratio of 3.27 indicates a premium versus the S&P 500 average of 2.75 and a significant discount versus the industry average of 5.82. 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, DIAMOND FOODS INC proves to trade at a discount to investment alternatives within the industry.
|DMND NM||Peers 24.93||DMND NM||Peers 15.23|
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.
DMND's P/E is negative making this valuation measure meaningless.
Neutral. 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.
DMND's P/CF is negative making the measure meaningless.
|DMND 23.20||Peers 21.05||DMND NA||Peers 4.20|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
DMND 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.
|DMND 3.27||Peers 5.82||DMND 22.64||Peers 18.89|
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.
DMND 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.
DMND is expected to have an earnings growth rate that exceeds its peers.
|DMND 1.07||Peers 1.76||DMND 0.13||Peers 2.10|
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.
DMND 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.
DMND significantly trails its peers on the basis of sales growth
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