0.26 | 4.84%
TRINA SOLAR LTD's gross profit margin for the fourth quarter of its fiscal year 2012 has significantly decreased 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. TRINA SOLAR LTD has weak liquidity. Currently, the Quick Ratio is 0.88 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.
During the same period, stockholders' equity ("net worth") has decreased by 23.01% 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.
| Income Statement | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Net Sales ($mil) | 302.75 | 435.69 |
| EBITDA ($mil) | 0.0 | 0.0 |
| EBIT ($mil) | -70.43 | -62.92 |
| Net Income ($mil) | -87.18 | -65.77 |
| Balance Sheet | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 918.2 | 896.38 |
| Total Assets ($mil) | 2864.86 | 2877.45 |
| Total Debt ($mil) | 1374.55 | 1037.38 |
| Equity ($mil) | 881.59 | 1145.13 |
| Profitability | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Gross Profit Margin | 1.86 | 7.12 |
| EBITDA Margin | 0.0 | 0.0 |
| Operating Margin | -23.26 | -14.44 |
| Sales Turnover | 0.45 | 0.71 |
| Return on Assets | -9.3 | -1.31 |
| Return on Equity | -30.23 | -3.3 |
| Debt | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Current Ratio | 1.19 | 1.76 |
| Debt/Capital | 0.61 | 0.48 |
| Interest Expense | 12.68 | 9.1 |
| Interest Coverage | -5.55 | -6.92 |
| Share Data | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Shares outstanding (mil) | 79.87 | 79.65 |
| Div / share | 0.0 | 0.0 |
| EPS | -1.23 | -0.93 |
| Book value / share | 11.04 | 14.38 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2821612.0 | 3370167.0 |
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. For additional comparison, its price-to-book ratio of 0.43 indicates a significant discount versus the S&P 500 average of 2.40 and a significant discount versus the industry average of 3.24. 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, TRINA SOLAR LTD proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| TSL NM | Peers 23.12 | TSL NM | Peers 21.62 | |||||||||||||||||||||
|
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. TSL'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. TSL's P/CF is negative making the measure meaningless. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| TSL NM | Peers 21.55 | TSL NA | Peers 2.42 | |||||||||||||||||||||
|
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. TSL'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. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| TSL 0.43 | Peers 3.24 | TSL -548.27 | Peers -18.71 | |||||||||||||||||||||
|
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. TSL 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, TSL is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
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| TSL 0.30 | Peers 3.53 | TSL -36.69 | Peers 3.54 | |||||||||||||||||||||
|
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. TSL 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. TSL significantly trails its peers on the basis of sales growth |
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