REYNOLDS AMERICAN INC's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. REYNOLDS AMERICAN INC has very weak liquidity. Currently, the Quick Ratio is 0.45 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.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.94% 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.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||2162.0||2179.0|
|Net Income ($mil)||492.0||461.0|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||1313.0||1664.0|
|Total Assets ($mil)||15301.0||15532.0|
|Total Debt ($mil)||5891.0||5582.0|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||56.71||55.3|
|Return on Assets||10.48||9.83|
|Return on Equity||32.25||29.98|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||531.28||544.04|
|Div / share||0.67||0.63|
|Book value / share||9.21||9.37|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2154568.0||2470725.0|
BUY. The current P/E ratio indicates a premium compared to an average of 17.90 for the Tobacco industry and a value on par with the S&P 500 average of 18.06. To use another comparison, its price-to-book ratio of 6.19 indicates a significant premium versus the S&P 500 average of 2.49 and a significant discount versus the industry average of 13.02. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.
|RAI 19.48||Peers 17.90||RAI 17.37||Peers 16.05|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
RAI is trading at a valuation on par with its peers.
Average. 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.
RAI is trading at a valuation on par to its peers.
|RAI 15.61||Peers 10.16||RAI 2.55||Peers 0.82|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
RAI is trading at a significant premium to its peers.
Premium. 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.
RAI trades at a significant premium to its peers.
|RAI 6.19||Peers 13.02||RAI 6.54||Peers -0.91|
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.
RAI 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.
RAI is expected to have an earnings growth rate that significantly exceeds its peers.
|RAI 3.67||Peers 4.25||RAI 0.16||Peers 12.47|
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.
RAI is trading at a discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
RAI significantly trails its peers on the basis of sales growth
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV