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Trina Solar Limited
TSL : NYSE : Technology

$5.63 0.26 | 4.84%
Today's Range: 5.38 - 5.78
Avg. Daily Volume: 3,035,700
05/17/13 - 4:03 PM ET

Financial Analysis


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 ($mil)302.75435.69
EBITDA ($mil)0.00.0
EBIT ($mil)-70.43-62.92
Net Income ($mil)-87.18-65.77


Balance Sheet Q4 FY12 Q4 FY11
Cash & Equiv. ($mil)918.2896.38
Total Assets ($mil)2864.862877.45
Total Debt ($mil)1374.551037.38
Equity ($mil)881.591145.13


Profitability Q4 FY12 Q4 FY11
Gross Profit Margin1.867.12
EBITDA Margin0.00.0
Operating Margin-23.26-14.44
Sales Turnover0.450.71
Return on Assets-9.3-1.31
Return on Equity-30.23-3.3
Debt Q4 FY12 Q4 FY11
Current Ratio1.191.76
Debt/Capital0.610.48
Interest Expense12.689.1
Interest Coverage-5.55-6.92


Share Data Q4 FY12 Q4 FY11
Shares outstanding (mil)79.8779.65
Div / share0.00.0
EPS-1.23-0.93
Book value / share11.0414.38
Institutional Own % n/a n/a
Avg Daily Volume2821612.03370167.0

Valuation


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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
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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