MAGNUM HUNTER RESOURCES CORP's gross profit margin for the second quarter of its fiscal year 2014 has significantly increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. MAGNUM HUNTER RESOURCES CORP has very weak liquidity. Currently, the Quick Ratio is 0.50 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.
At the same time, stockholders' equity ("net worth") has significantly decreased by 27.58% 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 FY14||Q2 FY13|
|Net Sales ($mil)||132.52||67.91|
|Net Income ($mil)||-64.65||165.44|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||24.89||82.04|
|Total Assets ($mil)||1963.36||2035.92|
|Total Debt ($mil)||844.44||669.67|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||46.83||31.26|
|Return on Assets||-23.92||0.66|
|Return on Equity||-40.74||-18.89|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||199.39||169.76|
|Div / share||0.0||0.0|
|Book value / share||3.73||6.05|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3420961.0||4190663.0|
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. To use another comparison, its price-to-book ratio of 1.61 indicates a discount versus the S&P 500 average of 2.76 and a significant discount versus the industry average of 14.43. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. The valuation analysis reveals that, MAGNUM HUNTER RESOURCES CORP seems to be trading at a premium to investment alternatives within the industry.
|MHR NM||Peers 24.66||MHR 19.40||Peers 22.31|
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 discount to its peers.
|MHR NM||Peers 18.41||MHR NA||Peers 3.06|
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.
|MHR 1.61||Peers 14.43||MHR -49.13||Peers 31.24|
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.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, MHR is expected to significantly trail its peers on the basis of its earnings growth rate.
|MHR 3.01||Peers 2.60||MHR 95.25||Peers 10.75|
Premium. 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 premium to its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
MHR has a sales growth rate that significantly exceeds its peers.
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