US CELLULAR CORP's gross profit margin for the third 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. US CELLULAR CORP 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.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.76% 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.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||1000.42||939.24|
|Net Income ($mil)||-22.17||-9.86|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||313.81||228.26|
|Total Assets ($mil)||6257.08||6259.85|
|Total Debt ($mil)||876.8||879.04|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||49.26||60.52|
|Return on Assets||-0.31||1.57|
|Return on Equity||-0.59||2.92|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||84.15||84.1|
|Div / share||0.0||0.0|
|Book value / share||39.49||40.23|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||97407.0||123950.0|
SELL. This stock?s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 0.94 indicates a significant discount versus the S&P 500 average of 2.75 and a discount versus the industry average of 1.77. 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, US CELLULAR CORP proves to trade at a discount to investment alternatives within the industry.
|USM NM||Peers 19.49||USM 9.56||Peers 7.76|
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.
USM'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.
USM is trading at a premium to its peers.
|USM NM||Peers 20.10||USM NA||Peers 1.24|
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.
USM'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.
|USM 0.94||Peers 1.77||USM -119.82||Peers 47.87|
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.
USM 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, USM is expected to significantly trail its peers on the basis of its earnings growth rate.
|USM 0.82||Peers 2.05||USM -8.35||Peers 8.45|
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.
USM 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.
USM significantly trails its peers on the basis of sales growth
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