0.05 | 0.78%
MIDSTATES PETROLEUM CO INC's gross profit margin for the first quarter of its fiscal year 2013 has 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. MIDSTATES PETROLEUM CO INC has weak liquidity. Currently, the Quick Ratio is 0.67 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 137.73% 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.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 71.02 | 30.24 |
| EBITDA ($mil) | 40.17 | 12.34 |
| EBIT ($mil) | -2.06 | -15.82 |
| Net Income ($mil) | -7.95 | -17.51 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 50.63 | 9.19 |
| Total Assets ($mil) | 1819.48 | 688.61 |
| Total Debt ($mil) | 796.45 | 275.56 |
| Equity ($mil) | 637.13 | 268.0 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 72.08 | 60.84 |
| EBITDA Margin | 56.55 | 40.79 |
| Operating Margin | -2.9 | -52.32 |
| Sales Turnover | 0.16 | 0.0 |
| Return on Assets | -7.72 | 0.0 |
| Return on Equity | -23.72 | 0.0 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 0.8 | 0.29 |
| Debt/Capital | 0.56 | 0.51 |
| Interest Expense | 17.97 | 2.36 |
| Interest Coverage | -0.11 | -6.7 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 68.36 | 65.63 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.18 | -0.27 |
| Book value / share | 9.32 | 4.08 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 435311.0 | 291119.0 |
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. For additional comparison, its price-to-book ratio of 0.68 indicates a significant discount versus the S&P 500 average of 2.42 and a significant discount versus the industry average of 4.15. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. After reviewing these and other key valuation criteria, MIDSTATES PETROLEUM CO INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MPO NM | Peers 22.89 | MPO 2.58 | Peers 8.94 | |||||||||||||||||||||
|
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. MPO'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. MPO is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| MPO 14.87 | Peers 20.84 | MPO NA | Peers 1.03 | |||||||||||||||||||||
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Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. MPO is trading at a significant premium to its peers. |
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. |
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| Price/Book |
|
Earnings Growth |
|
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| MPO 0.68 | Peers 4.15 | MPO -803.70 | Peers -26.24 | |||||||||||||||||||||
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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. MPO 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, MPO is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
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| MPO 1.50 | Peers 2.08 | MPO 853.74 | Peers 7.35 | |||||||||||||||||||||
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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. MPO 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. MPO has a sales growth rate that significantly exceeds its peers. |
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