-0.43 | -0.53%
EQT CORP's gross profit margin for the first quarter of its fiscal year 2013 has increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. EQT CORP 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 decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.84% 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.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 563.65 | 449.96 |
| EBITDA ($mil) | 355.64 | 267.91 |
| EBIT ($mil) | 206.53 | 160.39 |
| Net Income ($mil) | 100.26 | 72.04 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 160.33 | 745.21 |
| Total Assets ($mil) | 8802.48 | 8858.99 |
| Total Debt ($mil) | 2505.65 | 2737.05 |
| Equity ($mil) | 3637.92 | 3706.13 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 63.1 | 59.54 |
| EBITDA Margin | 63.09 | 59.54 |
| Operating Margin | 36.64 | 35.64 |
| Sales Turnover | 0.2 | 0.18 |
| Return on Assets | 2.4 | 4.84 |
| Return on Equity | 5.81 | 11.59 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 1.32 | 2.24 |
| Debt/Capital | 0.41 | 0.42 |
| Interest Expense | 37.75 | 41.25 |
| Interest Coverage | 5.47 | 3.89 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 150.44 | 149.58 |
| Div / share | 0.03 | 0.22 |
| EPS | 0.66 | 0.48 |
| Book value / share | 24.18 | 24.78 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1536924.0 | 1498645.0 |
BUY. EQT CORP's P/E ratio indicates a significant premium compared to an average of 24.66 for the Oil, Gas & Consumable Fuels industry and a significant premium compared to the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 3.17 indicates a premium versus the S&P 500 average of 2.44 and a discount versus the industry average of 3.72. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, EQT CORP seems to be trading at a premium to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EQT 54.69 | Peers 24.66 | EQT 12.73 | Peers 9.63 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. EQT is trading at a significant premium 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. EQT is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| EQT 24.11 | Peers 15.69 | EQT 0.60 | Peers 1.66 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. EQT is trading at a significant premium 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. EQT trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| EQT 3.17 | Peers 3.72 | EQT -50.88 | Peers -20.40 | |||||||||||||||||||||
|
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. EQT is trading at a discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, EQT is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| EQT 6.56 | Peers 2.36 | EQT 8.53 | Peers 9.80 | |||||||||||||||||||||
|
Premium. 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. EQT is trading at a significant premium to its industry. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. EQT trails its peers on the basis of sales growth |
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