-0.01 | -0.05%
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 ($mil) | 491.34 | 631.56 |
| EBITDA ($mil) | 25.01 | 150.57 |
| EBIT ($mil) | -56.18 | 84.08 |
| Net Income ($mil) | -49.44 | 40.62 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 235.79 | 138.2 |
| Total Assets ($mil) | 5883.44 | 6912.27 |
| Total Debt ($mil) | 2610.98 | 2382.0 |
| Equity ($mil) | 945.67 | 2175.2 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 11.33 | 29.58 |
| EBITDA Margin | 5.09 | 23.84 |
| Operating Margin | -11.43 | 13.31 |
| Sales Turnover | 0.38 | 0.4 |
| Return on Assets | -19.55 | 4.66 |
| Return on Equity | -122.2 | 14.82 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 1.69 | 1.87 |
| Debt/Capital | 0.73 | 0.52 |
| Interest Expense | 46.62 | 28.07 |
| Interest Coverage | -1.21 | 3.0 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 62.52 | 62.48 |
| Div / share | 0.13 | 0.13 |
| EPS | -0.79 | 0.65 |
| Book value / share | 15.13 | 34.81 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 4940112.0 | 2968474.0 |
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 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 |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| 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. |
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| Price/Book |
|
Earnings Growth |
|
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| WLT 1.22 | Peers 1.98 | WLT -458.44 | Peers -65.74 | |||||||||||||||||||||
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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. |
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| Price/Sales |
|
Sales Growth |
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| WLT 0.51 | Peers 3.38 | WLT -19.13 | Peers -6.00 | |||||||||||||||||||||
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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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