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EarthLink Holdings Corp
ELNK : NASDAQ : Technology
$7.88 -0.28 | -3.43%
Today's Range: 7.81 - 8.20
Avg. Daily Volume: 1,041,900
10/06/15 - 4:00 PM ET

Financial Analysis

EARTHLINK HOLDINGS CORP's gross profit margin for the second quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. EARTHLINK HOLDINGS CORP has average liquidity. Currently, the Quick Ratio is 1.10 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 52.87% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY15 Q2 FY14
Net Sales ($mil)283.66297.36
EBITDA ($mil)62.2748.57
EBIT ($mil)14.542.96
Net Income ($mil)-9.92-21.84

Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)87.3698.45
Total Assets ($mil)799.07937.84
Total Debt ($mil)568.52608.01
Equity ($mil)49.46104.94

Profitability Q2 FY15 Q2 FY14
Gross Profit Margin55.2151.51
EBITDA Margin21.9516.33
Operating Margin5.130.99
Sales Turnover1.431.28
Return on Assets-5.61-36.2
Return on Equity-89.78-323.04
Debt Q2 FY15 Q2 FY14
Current Ratio1.291.19
Interest Expense13.3114.12
Interest Coverage1.090.21

Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)103.65102.25
Div / share0.050.05
Book value / share0.481.03
Institutional Own % n/a n/a
Avg Daily Volume1045006.01203245.0


HOLD. 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. For additional comparison, its price-to-book ratio of 16.29 indicates a significant premium versus the S&P 500 average of 2.58 and a significant premium versus the industry average of 4.76. 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, EARTHLINK HOLDINGS CORP proves to trade at a premium to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ELNK NM Peers 44.61   ELNK 5.22 Peers 23.70

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.

ELNK'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.

ELNK is trading at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
ELNK NM Peers 19.52   ELNK NA Peers 0.61

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.

ELNK'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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ELNK 16.29 Peers 4.76   ELNK 86.75 Peers 82.66

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.

ELNK is trading at a significant premium to its peers.


Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

ELNK is expected to keep pace with its peers on the basis of earnings growth.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ELNK 0.71 Peers 8.19   ELNK -5.28 Peers 64.64

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.

ELNK 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.

ELNK significantly trails its peers on the basis of sales growth



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