REXNORD CORP'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. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. REXNORD CORP has strong liquidity. Currently, the Quick Ratio is 1.78 which shows the 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 46.58% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||537.9||514.5|
|Net Income ($mil)||37.2||-52.3|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||361.3||206.4|
|Total Assets ($mil)||3367.0||3186.1|
|Total Debt ($mil)||1964.1||1985.4|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||39.21||39.96|
|Return on Assets||3.5||-0.16|
|Return on Equity||19.89||-0.79|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||101.67||97.7|
|Div / share||0.0||0.0|
|Book value / share||5.83||4.14|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||701205.0||737261.0|
BUY. REXNORD CORP's P/E ratio indicates a premium compared to an average of 18.64 for the Machinery industry and a premium compared to the S&P 500 average of 19.47. Conducting a second comparison, its price-to-book ratio of 4.44 indicates a significant premium versus the S&P 500 average of 2.75 and a premium versus the industry average of 3.52. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. After reviewing these and other key valuation criteria, REXNORD CORP proves to trade at a premium to investment alternatives within the industry.
|RXN 22.52||Peers 18.64||RXN 10.10||Peers 14.19|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
RXN is trading at a 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.
RXN is trading at a significant discount to its peers.
|RXN 14.39||Peers 17.87||RXN 0.05||Peers 1.04|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
RXN is trading at a valuation on par with its peers.
Discount. 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.
RXN trades at a significant discount to its peers.
|RXN 4.44||Peers 3.52||RXN 2400.00||Peers 65.67|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
RXN is trading at a significant premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
RXN is expected to have an earnings growth rate that significantly exceeds its peers.
|RXN 1.25||Peers 1.64||RXN 3.50||Peers 11.45|
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.
RXN 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.
RXN significantly trails its peers on the basis of sales growth
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