GOLDEN STAR RESOURCES LTD's gross profit margin for the third quarter of its fiscal year 2014 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its industry. GOLDEN STAR RESOURCES LTD has very weak liquidity. Currently, the Quick Ratio is 0.35 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 77.72% 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||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||77.76||118.16|
|Net Income ($mil)||2.59||3.51|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||36.03||66.64|
|Total Assets ($mil)||305.71||445.81|
|Total Debt ($mil)||104.04||76.35|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||8.98||22.74|
|Return on Assets||-56.75||-24.26|
|Return on Equity||-354.5||-49.23|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||259.49||259.11|
|Div / share||0.0||0.0|
|Book value / share||0.19||0.85|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2986634.0||926356.0|
SELL. 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 1.80 indicates a discount versus the S&P 500 average of 2.75 and a premium versus the industry average of 1.70. 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 26.86||GSS NM||Peers 9.82|
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.
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.
GSS's P/CF is negative making the measure meaningless.
|GSS NM||Peers 19.59||GSS NA||Peers 0.54|
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 1.80||Peers 1.70||GSS -55.81||Peers 11.28|
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.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, GSS is expected to significantly trail its peers on the basis of its earnings growth rate.
|GSS 0.26||Peers 2.49||GSS -35.12||Peers 958.96|
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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