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Walter Energy Inc
WLT : NYSE : Basic Materials

$18.52 -0.01 | -0.05%
Today's Range: 18.20 - 19.32
Avg. Daily Volume: 5,193,200
05/24/13 - 4:00 PM ET

Financial Analysis


WALTER ENERGY INC's gross profit margin for the first quarter of its fiscal year 2013 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. WALTER ENERGY INC has weak liquidity. Currently, the Quick Ratio is 0.95 which shows a lack of 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 56.52% 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 Q1 FY13 Q1 FY12
Net Sales ($mil)491.34631.56
EBITDA ($mil)25.01150.57
EBIT ($mil)-56.1884.08
Net Income ($mil)-49.4440.62


Balance Sheet Q1 FY13 Q1 FY12
Cash & Equiv. ($mil)235.79138.2
Total Assets ($mil)5883.446912.27
Total Debt ($mil)2610.982382.0
Equity ($mil)945.672175.2


Profitability Q1 FY13 Q1 FY12
Gross Profit Margin11.3329.58
EBITDA Margin5.0923.84
Operating Margin-11.4313.31
Sales Turnover0.380.4
Return on Assets-19.554.66
Return on Equity-122.214.82
Debt Q1 FY13 Q1 FY12
Current Ratio1.691.87
Debt/Capital0.730.52
Interest Expense46.6228.07
Interest Coverage-1.213.0


Share Data Q1 FY13 Q1 FY12
Shares outstanding (mil)62.5262.48
Div / share0.130.13
EPS-0.790.65
Book value / share15.1334.81
Institutional Own % n/a n/a
Avg Daily Volume4940112.02968474.0

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 1.22 indicates a discount versus the S&P 500 average of 2.44 and a discount versus the industry average of 1.98. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WLT NM Peers 21.11   WLT 4.80 Peers 9.04

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.

 

Discount. 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 is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WLT 23.01 Peers 14.96   WLT NA Peers 1.00

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WLT 1.22 Peers 1.98   WLT -458.44 Peers -65.74

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WLT 0.51 Peers 3.38   WLT -19.13 Peers -6.00

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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