WALTER ENERGY INC's gross profit margin for the fourth quarter of its fiscal year 2014 has significantly decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased. WALTER ENERGY INC has strong liquidity. Currently, the Quick Ratio is 1.63 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 62.59% 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||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||285.56||472.0|
|Net Income ($mil)||-128.1||-174.34|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||468.53||260.82|
|Total Assets ($mil)||5386.13||5590.86|
|Total Debt ($mil)||3135.97||2778.83|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||-1.23||17.54|
|Return on Assets||-8.73||-6.42|
|Return on Equity||-167.11||-47.69|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||71.98||62.58|
|Div / share||0.01||0.01|
|Book value / share||3.91||12.03|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3239268.0||5598164.0|
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 0.16 indicates a significant discount versus the S&P 500 average of 2.74 and a discount versus the industry average of 1.47. 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, WALTER ENERGY INC proves to trade at a discount to investment alternatives within the industry.
|WLT NM||Peers 25.74||WLT NM||Peers 8.57|
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.
WLT'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.
WLT's P/CF is negative making the measure meaningless.
|WLT NM||Peers 25.60||WLT NA||Peers 0.83|
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.
WLT'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.
|WLT 0.16||Peers 1.47||WLT -23.86||Peers 97.18|
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.
WLT 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, WLT is expected to significantly trail its peers on the basis of its earnings growth rate.
|WLT 0.03||Peers 2.27||WLT -24.37||Peers 36.18|
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.
WLT 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.
WLT significantly trails its peers on the basis of sales growth
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