STARTEK INC's gross profit margin for the second quarter of its fiscal year 2014 has decreased 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. STARTEK INC has strong liquidity. Currently, the Quick Ratio is 1.93 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 6.44% 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 ($mil)||61.25||55.58|
|Net Income ($mil)||-3.28||-1.27|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||6.04||10.0|
|Total Assets ($mil)||86.9||88.91|
|Total Debt ($mil)||1.0||0.0|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||13.56||15.72|
|Return on Assets||-7.58||-4.13|
|Return on Equity||-11.67||-6.1|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||15.4||15.34|
|Div / share||0.0||0.0|
|Book value / share||3.66||3.93|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||18515.0||19979.0|
HOLD. 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. To use another comparison, its price-to-book ratio of 2.09 indicates a discount versus the S&P 500 average of 2.76 and a significant discount versus the industry average of 8.54. 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, STARTEK INC proves to trade at a discount to investment alternatives within the industry.
|SRT NM||Peers 26.92||SRT 26.01||Peers 16.52|
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.
SRT's P/E is negative making this valuation measure meaningless.
Premium. 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.
SRT is trading at a significant premium to its peers.
|SRT 51.07||Peers 18.86||SRT NA||Peers 1.20|
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.
SRT'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.
|SRT 2.09||Peers 8.54||SRT -79.16||Peers 18.40|
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.
SRT 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, SRT is expected to significantly trail its peers on the basis of its earnings growth rate.
|SRT 0.48||Peers 4.53||SRT 16.08||Peers 7.39|
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.
SRT 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.
SRT has a sales growth rate that significantly exceeds its peers.
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