HARMONY GOLD MINING CO LTD's gross profit margin for the second quarter of its fiscal year 2015 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. HARMONY GOLD MINING CO LTD has very weak liquidity. Currently, the Quick Ratio is 0.46 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 14.42% 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 FY15||Q2 FY14|
|Net Sales ($mil)||313.81||371.48|
|Net Income ($mil)||-73.68||-8.73|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||120.34||222.99|
|Total Assets ($mil)||3462.94||4044.16|
|Total Debt ($mil)||270.39||312.83|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||14.14||21.24|
|Return on Assets||-6.04||-9.7|
|Return on Equity||-8.02||-13.25|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||436.09||435.69|
|Div / share||0.0||0.0|
|Book value / share||5.98||7.0|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4947208.0||2752835.0|
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 0.40 indicates a significant discount versus the S&P 500 average of 2.79 and a discount versus the industry average of 1.69. 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, HARMONY GOLD MINING CO LTD proves to trade at a discount to investment alternatives within the industry.
|HMY NM||Peers 27.79||HMY 4.73||Peers 9.33|
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.
HMY'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.
HMY is trading at a significant discount to its peers.
|HMY 119.00||Peers 20.11||HMY NA||Peers 0.83|
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.
HMY'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.
|HMY 0.40||Peers 1.69||HMY 48.39||Peers 12.52|
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.
HMY 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.
HMY is expected to have an earnings growth rate that significantly exceeds its peers.
|HMY 0.74||Peers 2.35||HMY 5.79||Peers 1012.02|
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.
HMY 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.
HMY significantly trails its peers on the basis of sales growth
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