For the first quarter Molycorp reported a loss of -29 cents a share, missing the Capital IQ Consensus Estimate of -24 cents a share by 5 cents. Revenue fell -18.5% to $118.5 million. Analysts expected revenue of $144.48 for the quarter.
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- Net operating cash flow has significantly decreased to -$64.34 million or 51.57% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, MOLYCORP INC has marginally lower results.
- The debt-to-equity ratio of 1.02 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, MCP has managed to keep a strong quick ratio of 2.46, which demonstrates the ability to cover short-term cash needs.
- MCP has underperformed the S&P 500 Index, declining 17.29% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Metals & Mining industry average, but is greater than that of the S&P 500. The net income increased by 50.3% when compared to the same quarter one year prior, rising from -$391.19 million to -$194.31 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, MOLYCORP INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: MCP Ratings Report