Arctic Cat Inc

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ACAT : NASDAQ : Consumer Goods
$13.15 | %
Today's Range: 13.065 - 13.37
Avg. Daily Volume: 148800.0
01/20/17 - 4:00 PM ET

Financial Analysis


ARCTIC CAT INC's gross profit margin for the second quarter of its fiscal year 2016 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. ARCTIC CAT INC has weak liquidity. Currently, the Quick Ratio is 0.60 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 22.64% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)164.61211.16
EBITDA ($mil)-11.6124.95
EBIT ($mil)-16.918.65
Net Income ($mil)-12.7711.17


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)9.1510.71
Total Assets ($mil)417.91352.02
Total Debt ($mil)73.8615.79
Equity ($mil)147.27190.38


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin11.4423.78
EBITDA Margin-7.0511.81
Operating Margin-10.278.83
Sales Turnover1.331.81
Return on Assets-10.2-1.11
Return on Equity-28.94-2.06
Debt Q2 FY16 Q2 FY15
Current Ratio1.692.08
Debt/Capital0.330.08
Interest Expense0.460.39
Interest Coverage-36.9847.34


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)13.0512.98
Div / share0.00.13
EPS-0.980.85
Book value / share11.2914.66
Institutional Own % n/a n/a
Avg Daily Volume143947.0127933.0

Valuation


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. For additional comparison, its price-to-book ratio of 1.21 indicates a significant discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 4.60. 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, ARCTIC CAT 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
ACAT NM Peers 23.47   ACAT NM Peers 14.34

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.

ACAT'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.

ACAT's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ACAT 160.59 Peers 20.18   ACAT NA Peers 1.08

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.

ACAT'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
ACAT 1.21 Peers 4.60   ACAT -921.87 Peers 54.74

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.

ACAT 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, ACAT 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
ACAT 0.32 Peers 1.62   ACAT -12.75 Peers 7.25

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.

ACAT 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.

ACAT significantly trails its peers on the basis of sales growth

 

 

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