The Advisory Board CoFind Ratings Reports
ADVISORY BOARD CO's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. ADVISORY BOARD CO 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.
During the same period, stockholders' equity ("net worth") has decreased by 16.70% 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 FY16||Q3 FY15|
|Net Sales ($mil)||200.46||200.49|
|Net Income ($mil)||37.54||0.67|
|Balance Sheet||Q3 FY16||Q3 FY15|
|Cash & Equiv. ($mil)||55.09||56.08|
|Total Assets ($mil)||1970.96||2102.49|
|Total Debt ($mil)||562.21||557.31|
|Profitability||Q3 FY16||Q3 FY15|
|Gross Profit Margin||48.4||48.92|
|Return on Assets||-2.53||-0.89|
|Return on Equity||-10.6||-3.31|
|Debt||Q3 FY16||Q3 FY15|
|Share Data||Q3 FY16||Q3 FY15|
|Shares outstanding (mil)||40.14||41.89|
|Div / share||0.0||0.0|
|Book value / share||11.73||13.49|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||698349.0||303862.0|
HOLD. 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 3.98 indicates a premium versus the S&P 500 average of 2.96 and a significant discount versus the industry average of 7.99. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, ADVISORY BOARD CO proves to trade at a discount to investment alternatives within the industry.
|ABCO NM||Peers 37.86||ABCO 17.13||Peers 18.41|
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.
ABCO's P/E is negative making this valuation measure meaningless.
Average. 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.
ABCO is trading at a valuation on par to its peers.
|ABCO 24.55||Peers 19.83||ABCO NA||Peers 3.08|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
ABCO is trading at a significant premium to its peers.
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.
|ABCO 3.98||Peers 7.99||ABCO -139.58||Peers 28.17|
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.
ABCO 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, ABCO is expected to significantly trail its peers on the basis of its earnings growth rate.
|ABCO 2.33||Peers 3.79||ABCO 12.74||Peers 31.57|
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.
ABCO 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.
ABCO significantly trails its peers on the basis of sales growth