HARRIS CORP's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. HARRIS CORP has weak liquidity. Currently, the Quick Ratio is 0.75 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 79.45% 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.
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|Income Statement||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||1843.0||1206.3|
|Net Income ($mil)||-152.0||139.5|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||511.0||469.5|
|Total Assets ($mil)||12097.0||4798.2|
|Total Debt ($mil)||5026.0||1651.1|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||34.07||36.19|
|Return on Assets||0.54||11.2|
|Return on Equity||2.53||29.79|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||124.41||104.08|
|Div / share||0.5||0.47|
|Book value / share||26.13||17.41|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1178158.0||1093673.0|
BUY. HARRIS CORP's P/E ratio indicates a significant premium compared to an average of 24.72 for the Communications Equipment industry and a significant premium compared to the S&P 500 average of 23.99. To use another comparison, its price-to-book ratio of 3.06 indicates a premium versus the S&P 500 average of 2.74 and a discount versus the industry average of 3.33. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount.
|HRS 102.63||Peers 24.72||HRS 10.16||Peers 16.45|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
HRS is trading at a significant premium to its peers.
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.
HRS is trading at a significant discount to its peers.
|HRS 13.08||Peers 18.09||HRS 1.21||Peers 1.39|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
HRS is trading at a discount 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.
HRS trades at a discount to its peers.
|HRS 3.06||Peers 3.33||HRS -84.56||Peers 48.42|
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.
HRS 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, HRS is expected to significantly trail its peers on the basis of its earnings growth rate.
|HRS 1.56||Peers 3.07||HRS 28.57||Peers 6.79|
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.
HRS is trading at a significant discount to its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
HRS has a sales growth rate that significantly exceeds its peers.
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