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SGOCO Group Ltd
SGOC : NASDAQ : Consumer Goods
$1.39 | %
Today's Range: 1.28 - 1.43
Avg. Daily Volume: 103,900
12/19/14 - 4:00 PM ET

Financial Analysis


SGOCO GROUP LTD's gross profit margin for the fourth quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Sales and net income fell significantly; although net income growth outperformed the average competitor in its industry, revenue growth did not. SGOCO GROUP LTD is extremely liquid. Currently, the Quick Ratio is 3.74 which clearly shows the ability to cover any short-term cash needs. SGOC managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 12.09% 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 Q4 FY13 Q4 FY12
Net Sales ($mil)44.2263.43
EBITDA ($mil)1.913.65
EBIT ($mil)1.893.63
Net Income ($mil)1.183.15


Balance Sheet Q4 FY13 Q4 FY12
Cash & Equiv. ($mil)13.511.55
Total Assets ($mil)104.74105.65
Total Debt ($mil)6.736.44
Equity ($mil)87.7978.32


Profitability Q4 FY13 Q4 FY12
Gross Profit Margin8.07.76
EBITDA Margin4.325.76
Operating Margin4.285.73
Sales Turnover1.921.58
Return on Assets8.063.98
Return on Equity9.615.37
Debt Q4 FY13 Q4 FY12
Current Ratio6.183.86
Debt/Capital0.070.08
Interest Expense0.10.01
Interest Coverage18.18363.4


Share Data Q4 FY13 Q4 FY12
Shares outstanding (mil)17.6617.47
Div / share0.00.0
EPS0.070.19
Book value / share4.974.48
Institutional Own % n/a n/a
Avg Daily Volume110454.0499877.0

Valuation


HOLD. SGOCO GROUP LTD's P/E ratio indicates a significant discount compared to an average of 23.17 for the Household Durables industry and a significant discount compared to the S&P 500 average of 19.99. For additional comparison, its price-to-book ratio of 0.26 indicates a significant discount versus the S&P 500 average of 2.76 and a significant discount versus the industry average of 3.21. 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, SGOCO GROUP LTD proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SGOC 2.61 Peers 23.17   SGOC 16.33 Peers 17.15

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SGOC is trading at a significant discount to its peers.

 

Average. 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.

SGOC is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SGOC NA Peers 18.41   SGOC NA Peers 1.18

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SGOC 0.26 Peers 3.21   SGOC 96.00 Peers -34.85

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.

SGOC 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.

SGOC is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SGOC 0.11 Peers 1.37   SGOC 20.55 Peers 16.68

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.

SGOC is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SGOC has a sales growth rate that exceeds its peers.

 

 

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