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SORL Auto Parts Inc
SORL : NASDAQ : Consumer Goods
$1.70 | %
Today's Range: 1.64 - 1.75
Avg. Daily Volume: 20,500
04/29/16 - 3:52 PM ET

Financial Analysis


SORL AUTO PARTS INC's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. SORL AUTO PARTS INC is extremely liquid. Currently, the Quick Ratio is 2.06 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.38% 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 Q3 FY15 Q3 FY14
Net Sales ($mil)50.3258.7
EBITDA ($mil)2.855.46
EBIT ($mil)0.993.59
Net Income ($mil)2.052.9


Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)92.7737.9
Total Assets ($mil)303.03270.1
Total Debt ($mil)26.5316.55
Equity ($mil)198.17193.55


Profitability Q3 FY15 Q3 FY14
Gross Profit Margin30.9129.52
EBITDA Margin5.659.29
Operating Margin1.976.11
Sales Turnover0.740.85
Return on Assets3.743.92
Return on Equity5.735.47
Debt Q3 FY15 Q3 FY14
Current Ratio3.014.12
Debt/Capital0.120.08
Interest Expense0.40.4
Interest Coverage2.518.91


Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)19.3119.31
Div / share0.00.0
EPS0.110.15
Book value / share10.2710.03
Institutional Own % n/a n/a
Avg Daily Volume19801.040384.0

Valuation


HOLD. SORL AUTO PARTS INC's P/E ratio indicates a significant discount compared to an average of 31.61 for the Auto Components industry and a significant discount compared to the S&P 500 average of 24.17. For additional comparison, its price-to-book ratio of 0.16 indicates a significant discount versus the S&P 500 average of 2.76 and a significant discount versus the industry average of 3.93. 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, SORL AUTO PARTS INC 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
SORL 2.85 Peers 31.61   SORL 0.65 Peers 10.80

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

SORL is trading at a significant discount 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.

SORL is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SORL 2.75 Peers 11.60   SORL NM Peers 0.85

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SORL is trading at a significant discount 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.

SORL's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SORL 0.16 Peers 3.93   SORL 7.27 Peers -4.22

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.

SORL 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.

SORL 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
SORL 0.14 Peers 2.23   SORL -2.03 Peers 0.88

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.

SORL 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.

SORL significantly trails its peers on the basis of sales growth

 

 

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