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n.a.
MHR : NYSE :
$0.15 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 0
- ET

Financial Analysis


MAGNUM HUNTER RESOURCES CORP'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. Even though sales decreased, the net income has increased. MAGNUM HUNTER RESOURCES CORP has very weak liquidity. Currently, the Quick Ratio is 0.26 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 43.39% 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 ($mil)39.53129.65
EBITDA ($mil)1.0344.99
EBIT ($mil)-22.224.13
Net Income ($mil)-21.68-71.13


Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)11.2724.89
Total Assets ($mil)1534.261963.36
Total Debt ($mil)948.54844.44
Equity ($mil)421.23744.12


Profitability Q2 FY15 Q2 FY14
Gross Profit Margin32.4749.45
EBITDA Margin2.634.69
Operating Margin-56.23.18
Sales Turnover0.150.21
Return on Assets-9.43-24.56
Return on Equity-56.19-38.12
Debt Q2 FY15 Q2 FY14
Current Ratio0.290.54
Debt/Capital0.690.53
Interest Expense24.119.88
Interest Coverage-0.920.21


Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)213.05199.39
Div / share0.00.0
EPS-0.14-0.14
Book value / share1.983.73
Institutional Own % n/a n/a
Avg Daily Volume7557745.05811678.0

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. For additional comparison, its price-to-book ratio of 0.15 indicates a significant discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 8.52. 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, MAGNUM HUNTER RESOURCES CORP 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
MHR NM Peers 65.72   MHR 5.28 Peers 9.59

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.

MHR'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.

MHR 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
MHR NM Peers 34.09   MHR NA Peers 1.44

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.

MHR'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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MHR 0.15 Peers 8.52   MHR 28.66 Peers -219.68

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.

MHR 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.

MHR 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
MHR 0.27 Peers 2.07   MHR -42.26 Peers -21.79

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.

MHR 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.

MHR significantly trails its peers on the basis of sales growth

 

 

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