GOLDEN STAR RESOURCES LTD's gross profit margin for the second quarter of its fiscal year 2014 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. GOLDEN STAR RESOURCES LTD has very weak liquidity. Currently, the Quick Ratio is 0.42 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 78.76% 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 FY14||Q2 FY13|
|Net Sales ($mil)||79.57||120.69|
|Net Income ($mil)||-5.15||-128.83|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||43.41||58.53|
|Total Assets ($mil)||310.36||433.99|
|Total Debt ($mil)||115.77||62.32|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||1.43||-97.15|
|Return on Assets||-55.6||-32.69|
|Return on Equity||-376.83||-65.79|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||259.38||259.11|
|Div / share||0.0||0.0|
|Book value / share||0.18||0.83|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1166909.0||1048580.0|
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. Conducting a second comparison, its price-to-book ratio of 1.81 indicates a discount versus the S&P 500 average of 2.75 and a premium versus the industry average of 1.81. 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, GOLDEN STAR RESOURCES LTD proves to trade at a premium to investment alternatives within the industry.
|GSS NM||Peers 25.14||GSS 4.97||Peers 11.39|
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.
GSS'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.
GSS is trading at a significant discount to its peers.
|GSS NM||Peers 19.02||GSS NA||Peers 0.60|
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.
GSS'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.
|GSS 1.81||Peers 1.81||GSS -19.64||Peers -94.38|
Average. 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.
GSS is trading at a valuation on par with its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
GSS is expected to have an earnings growth rate that significantly exceeds its peers.
|GSS 0.22||Peers 2.36||GSS -29.45||Peers 1098.68|
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.
GSS 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.
GSS significantly trails its peers on the basis of sales growth
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