-0.14 | -1.67%
RESOLUTE ENERGY CORP's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged 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. RESOLUTE ENERGY CORP has weak liquidity. Currently, the Quick Ratio is 0.60 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.84% 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 ($mil) | 78.9 | 63.54 |
| EBITDA ($mil) | 34.89 | 30.91 |
| EBIT ($mil) | 10.01 | 13.86 |
| Net Income ($mil) | -3.05 | -0.74 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 1.64 | 0.69 |
| Total Assets ($mil) | 1601.06 | 992.88 |
| Total Debt ($mil) | 791.82 | 188.0 |
| Equity ($mil) | 531.69 | 517.0 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 55.09 | 56.86 |
| EBITDA Margin | 44.22 | 48.65 |
| Operating Margin | 12.69 | 21.81 |
| Sales Turnover | 0.17 | 0.24 |
| Return on Assets | 0.97 | 4.68 |
| Return on Equity | 2.94 | 8.99 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 0.72 | 0.61 |
| Debt/Capital | 0.6 | 0.27 |
| Interest Expense | 10.78 | 1.71 |
| Interest Coverage | 0.93 | 8.08 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 63.64 | 61.86 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.05 | -0.01 |
| Book value / share | 8.35 | 8.36 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 575803.0 | 347822.0 |
HOLD. This stock's P/E ratio indicates a premium compared to an average of 22.89 for the Oil, Gas & Consumable Fuels industry and a significant premium compared to the S&P 500 average of 18.91. To use another comparison, its price-to-book ratio of 0.95 indicates a discount versus the S&P 500 average of 2.42 and a significant discount versus the industry average of 4.15. The current price-to-sales ratio is above the S&P 500 average, but below the industry average.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| REN 31.88 | Peers 22.89 | REN 6.54 | Peers 8.94 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. REN is trading at a significant premium to its peers. |
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. REN is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| REN 35.42 | Peers 20.84 | REN NM | Peers 1.03 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. REN 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. REN's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| REN 0.95 | Peers 4.15 | REN -63.24 | Peers -26.24 | |||||||||||||||||||||
|
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. REN 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, REN 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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| REN 1.85 | Peers 2.08 | REN 15.75 | Peers 7.35 | |||||||||||||||||||||
|
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. REN is trading at a discount to its industry on this measurement. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. REN has a sales growth rate that significantly exceeds its peers. |
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