Alon USA Energy Inc

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ALJ : NYSE : Basic Materials
$8.31 | %
Today's Range: 8.20 - 8.55
Avg. Daily Volume: 1,418,800
09/23/16 - 4:02 PM ET

Financial Analysis


ALON USA ENERGY 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. ALON USA ENERGY INC has weak liquidity. Currently, the Quick Ratio is 0.70 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 16.50% 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 ($mil)988.521281.97
EBITDA ($mil)22.17119.36
EBIT ($mil)-14.8288.09
Net Income ($mil)-20.3736.41


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)205.85263.83
Total Assets ($mil)2245.462211.56
Total Debt ($mil)552.26539.21
Equity ($mil)564.94676.61


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin7.4713.15
EBITDA Margin2.249.31
Operating Margin-1.56.87
Sales Turnover1.652.57
Return on Assets-2.964.9
Return on Equity-11.7716.03
Debt Q2 FY16 Q2 FY15
Current Ratio1.071.36
Debt/Capital0.490.44
Interest Expense18.818.22
Interest Coverage-0.794.84


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)71.1670.57
Div / share0.150.15
EPS-0.290.5
Book value / share7.949.59
Institutional Own % n/a n/a
Avg Daily Volume1457077.01212796.0

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 1.07 indicates a significant discount versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 14.73. 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, ALON USA ENERGY 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
ALJ NM Peers 77.95   ALJ 6.18 Peers 10.77

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.

ALJ's P/E is negative making this valuation measure meaningless.

 

Discount. 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.

ALJ is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ALJ NM Peers 45.38   ALJ NA Peers 3.86

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.

ALJ'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
ALJ 1.07 Peers 14.73   ALJ -163.39 Peers -229.88

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.

ALJ 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.

ALJ 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
ALJ 0.16 Peers 2.51   ALJ -34.67 Peers -26.22

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.

ALJ 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.

ALJ significantly trails its peers on the basis of sales growth

 

 

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