SPANISH BROADCASTING SYS INC's gross profit margin for the third quarter of its fiscal year 2015 has increased 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. SPANISH BROADCASTING SYS INC has very weak liquidity. Currently, the Quick Ratio is 0.33 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 37.60% 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.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||36.38||36.28|
|Net Income ($mil)||-7.69||-4.67|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||28.29||30.77|
|Total Assets ($mil)||456.94||461.39|
|Total Debt ($mil)||420.62||409.55|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||29.42||25.74|
|Return on Assets||-5.65||-21.92|
|Return on Equity||0.0||0.0|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||7.27||7.27|
|Div / share||0.0||0.0|
|Book value / share||-12.93||-9.4|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||9317.0||2771.0|
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. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.
|SBSA NM||Peers 22.85||SBSA NM||Peers 16.42|
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.
SBSA's P/E is negative making this valuation measure meaningless.
Neutral. 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.
SBSA's P/CF is negative making the measure meaningless.
|SBSA NA||Peers 17.16||SBSA NA||Peers 1.41|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.
Ratio not available.
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.
|SBSA NM||Peers 4.16||SBSA -85.41||Peers -38.72|
Neutral. 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.
SBSA's P/B is negative making this valuation measure meaningless.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, SBSA is expected to significantly trail its peers on the basis of its earnings growth rate.
|SBSA 0.20||Peers 3.24||SBSA -3.06||Peers 10.02|
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.
SBSA 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.
SBSA significantly trails its peers on the basis of sales growth
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