Advanced Emissions Solutions, Inc.

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ADES : NASDAQ :
$7.77 -0.18 | -2.30%
Today's Range: 7.28 - 8.09
Avg. Daily Volume: 0
09/29/16 - 3:59 PM ET

Financial Analysis


ADVANCED EMISSIONS SOLUTIONS's gross profit margin for the second quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. ADVANCED EMISSIONS SOLUTIONS has weak liquidity. Currently, the Quick Ratio is 0.53 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 greatly increased by 28.12% 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 ($mil)8.9514.9
EBITDA ($mil)-3.61-11.64
EBIT ($mil)-3.83-12.22
Net Income ($mil)7.86-12.45


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)6.6912.94
Total Assets ($mil)36.6176.5
Total Debt ($mil)0.015.33
Equity ($mil)-10.49-14.6


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin-6.94-26.13
EBITDA Margin-40.27-78.16
Operating Margin-42.77-82.01
Sales Turnover1.570.65
Return on Assets1.84-23.0
Return on Equity0.00.0
Debt Q2 FY16 Q2 FY15
Current Ratio0.630.69
Debt/Capital0.020.94
Interest Expense1.571.79
Interest Coverage-2.43-6.81


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)21.9721.78
Div / share0.00.0
EPS0.35-0.57
Book value / share-0.48-0.67
Institutional Own % n/a n/a
Avg Daily Volume47851.018281.0

Valuation


SELL. ADVANCED EMISSIONS SOLUTIONS's P/E ratio indicates a significant premium compared to an average of 24.55 for the Chemicals industry and a significant premium compared to the S&P 500 average of 24.84. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, ADVANCED EMISSIONS SOLUTIONS seems to be trading at a premium 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
ADES 410.00 Peers 24.55   ADES NM Peers 15.58

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

ADES is trading at a significant premium to its peers.

 

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.

ADES'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
ADES NA Peers 20.11   ADES NA Peers 1.88

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

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
ADES NM Peers 5.63   ADES 102.46 Peers 95.17

Neutral. 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.

ADES's P/B is negative making this valuation measure meaningless.

 

Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

ADES is expected to keep pace with its peers on the basis of earnings growth.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ADES 3.14 Peers 2.28   ADES 16.09 Peers -7.43

Premium. 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.

ADES is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

ADES has a sales growth rate that significantly exceeds its peers.

 

 

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