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Harmony Gold Mining Co Ltd
HMY : NYSE : Basic Materials
$1.87 -0.07 | -3.61%
Today's Range: 1.86 - 1.91
Avg. Daily Volume: 1,883,100
10/24/14 - 4:03 PM ET

Financial Analysis


HARMONY GOLD MINING CO LTD's gross profit margin for the fourth quarter of its fiscal year 2014 has significantly increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth.

During the same period, stockholders' equity ("net worth") has decreased by 10.65% from the same quarter last year.

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Income Statement Q4 FY14 Q4 FY13
Net Sales ($mil)343.91263.66
EBITDA ($mil)-82.49-274.9
EBIT ($mil)-130.6-318.12
Net Income ($mil)-115.08-362.17


Balance Sheet Q4 FY14 Q4 FY13
Cash & Equiv. ($mil)173.57211.44
Total Assets ($mil)3846.954274.23
Total Debt ($mil)269.2256.89
Equity ($mil)2921.883270.38


Profitability Q4 FY14 Q4 FY13
Gross Profit Margin-17.41-91.13
EBITDA Margin-23.98-104.26
Operating Margin-37.98-120.66
Sales Turnover0.380.38
Return on Assets-3.1-5.56
Return on Equity-4.09-8.24
Debt Q4 FY14 Q4 FY13
Current Ratio2.42.0
Debt/Capital0.080.07
Interest Expense9.364.45
Interest Coverage-13.96-71.44


Share Data Q4 FY14 Q4 FY13
Shares outstanding (mil)435.83435.29
Div / share0.00.0
EPS-0.27-0.83
Book value / share6.77.51
Institutional Own % n/a n/a
Avg Daily Volume1882522.01999665.0

Valuation


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 0.31 indicates a significant discount versus the S&P 500 average of 2.49 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HMY NM Peers 28.57   HMY 4.48 Peers 13.56

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HMY NA Peers 19.13   HMY NA Peers 0.39

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HMY 0.31 Peers 1.69   HMY 54.84 Peers -43.84

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HMY 0.61 Peers 2.47   HMY -8.30 Peers 46.09

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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