RESOURCES CONNECTION INC's gross profit margin for the first quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. RESOURCES CONNECTION INC is extremely liquid. Currently, the Quick Ratio is 3.67 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.88% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q1 FY14||Q1 FY13|
|Net Sales ($mil)||143.45||131.7|
|Net Income ($mil)||5.4||3.65|
|Balance Sheet||Q1 FY14||Q1 FY13|
|Cash & Equiv. ($mil)||100.12||121.39|
|Total Assets ($mil)||405.15||417.65|
|Total Debt ($mil)||0.0||0.0|
|Profitability||Q1 FY14||Q1 FY13|
|Gross Profit Margin||39.2||37.74|
|Return on Assets||5.33||4.62|
|Return on Equity||6.24||5.42|
|Debt||Q1 FY14||Q1 FY13|
|Share Data||Q1 FY14||Q1 FY13|
|Shares outstanding (mil)||38.08||39.84|
|Div / share||0.08||0.07|
|Book value / share||9.09||8.95|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||162712.0||122025.0|
BUY. The current P/E ratio indicates a discount compared to an average of 36.96 for the Professional Services industry and a premium compared to the S&P 500 average of 19.74. To use another comparison, its price-to-book ratio of 1.73 indicates a discount versus the S&P 500 average of 2.73 and a significant discount versus the industry average of 5.41. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, RESOURCES CONNECTION INC proves to trade at a discount to investment alternatives within the industry.
|RECN 28.14||Peers 36.96||RECN 32.99||Peers 26.74|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
RECN is trading at a discount to its peers.
Premium. 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.
RECN is trading at a premium to its peers.
|RECN 20.39||Peers 22.04||RECN 0.85||Peers 0.87|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
RECN is trading at a valuation on par with its peers.
Average. 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.
RECN trades at a valuation on par to its peers.
|RECN 1.73||Peers 5.41||RECN 19.14||Peers 12.12|
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.
RECN 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.
RECN is expected to have an earnings growth rate that significantly exceeds its peers.
|RECN 1.04||Peers 3.46||RECN 5.04||Peers 11.63|
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.
RECN 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.
RECN significantly trails its peers on the basis of sales growth
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