SANDRIDGE ENERGY INC's gross profit margin for the first quarter of its fiscal year 2015 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, but still managed to outperform when compared to the average company in its industry. SANDRIDGE ENERGY INC has weak liquidity. Currently, the Quick Ratio is 0.53 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 46.73% 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.
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|Income Statement||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||215.31||443.06|
|Net Income ($mil)||-1034.95||-136.34|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||11.82||1179.64|
|Total Assets ($mil)||6057.21||6878.26|
|Total Debt ($mil)||3370.58||3195.04|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||-456.79||28.67|
|Return on Assets||-10.65||-2.95|
|Return on Equity||-77.31||-15.37|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||483.77||494.65|
|Div / share||0.0||0.0|
|Book value / share||1.85||3.4|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.4681925E7||1.6772957E7|
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. For additional comparison, its price-to-book ratio of 0.72 indicates a significant discount versus the S&P 500 average of 2.86 and a significant discount versus the industry average of 11.18. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, SANDRIDGE ENERGY INC proves to trade at a discount to investment alternatives within the industry.
|SD NM||Peers 30.85||SD 1.04||Peers 10.01|
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.
SD's P/E is negative making this valuation measure meaningless.
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.
SD is trading at a significant discount to its peers.
|SD NM||Peers 47.33||SD NA||Peers 2.58|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
SD's ratio is negative making this valuation measure meaningless.
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.
|SD 0.72||Peers 11.18||SD -185.18||Peers -16.70|
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.
SD 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, SD is expected to significantly trail its peers on the basis of its earnings growth rate.
|SD 0.48||Peers 2.34||SD -30.49||Peers -1.15|
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.
SD 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.
SD significantly trails its peers on the basis of sales growth
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