Advanced Emissions Solutions, Inc.

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ADES : NASDAQ :
$9.54 up 0.04 | 0.42%
Today's Range: 9.5 - 9.7653
Avg. Daily Volume: 0
04/24/17 - 2:17 PM ET

Financial Analysis


ADVANCED EMISSIONS SOLUTIONS's gross profit margin for the fourth quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. ADVANCED EMISSIONS SOLUTIONS has strong liquidity. Currently, the Quick Ratio is 1.58 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 404.92% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)3.6313.2
EBITDA ($mil)-5.07-5.55
EBIT ($mil)-5.45-5.94
Net Income ($mil)75.83-2.91


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)26.949.99
Total Assets ($mil)107.360.78
Total Debt ($mil)0.028.03
Equity ($mil)76.17-24.98


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin-69.88-1.94
EBITDA Margin-139.72-42.04
Operating Margin-150.37-44.98
Sales Turnover0.471.03
Return on Assets91.03-49.59
Return on Equity128.240.0
Debt Q4 FY16 Q4 FY15
Current Ratio1.640.51
Debt/Capital0.09.2
Interest Expense0.573.06
Interest Coverage-9.56-1.94


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)22.0321.81
Div / share0.00.0
EPS3.39-0.13
Book value / share3.46-1.15
Institutional Own % n/a n/a
Avg Daily Volume76546.050327.0

Valuation


BUY. ADVANCED EMISSIONS SOLUTIONS's P/E ratio indicates a significant discount compared to an average of 40.70 for the Chemicals industry and a significant discount compared to the S&P 500 average of 24.92. To use another comparison, its price-to-book ratio of 2.63 indicates a discount versus the S&P 500 average of 2.99 and a significant discount versus the industry average of 6.15. 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 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
ADES 2.08 Peers 40.70   ADES NM Peers 15.31

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

ADES is trading at a significant discount 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 2.73 Peers 20.77   ADES NM Peers 1.31

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

ADES is trading at a significant discount 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.

ADES's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ADES 2.63 Peers 6.15   ADES 416.66 Peers 4.17

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.

ADES is trading at a significant discount to its peers.

 

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

ADES is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ADES 3.96 Peers 2.39   ADES -19.32 Peers -0.96

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ADES significantly trails its peers on the basis of sales growth

 

 

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