ARC Group Worldwide Inc

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ARCW : NASDAQ : Industrial Goods
$2.95 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 14500.0
07/25/17 - 4:00 PM ET

Financial Analysis


ARC GROUP WORLDWIDE INC's gross profit margin for the third quarter of its fiscal year 2017 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. ARC GROUP WORLDWIDE INC has weak liquidity. Currently, the Quick Ratio is 0.81 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged 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 FY17 Q3 FY16
Net Sales ($mil)25.4724.89
EBITDA ($mil)0.642.74
EBIT ($mil)-1.890.33
Net Income ($mil)-2.77-0.36


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)0.722.92
Total Assets ($mil)111.84120.7
Total Debt ($mil)48.157.73
Equity ($mil)44.4944.16


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin22.0929.94
EBITDA Margin2.511.02
Operating Margin-7.41.32
Sales Turnover0.970.84
Return on Assets-0.67-1.79
Return on Equity-10.01-6.94
Debt Q3 FY17 Q3 FY16
Current Ratio2.022.05
Debt/Capital0.520.57
Interest Expense0.871.11
Interest Coverage-2.180.3


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)18.1718.8
Div / share0.00.0
EPS-0.15-0.04
Book value / share2.452.35
Institutional Own % n/a n/a
Avg Daily Volume12933.022286.0

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 1.25 indicates a significant discount versus the S&P 500 average of 3.07 and a significant discount versus the industry average of 5.05. 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, ARC GROUP WORLDWIDE 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
ARCW NM Peers 28.53   ARCW 13.65 Peers 16.51

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.

ARCW'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.

ARCW is trading at a 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
ARCW 25.42 Peers 22.36   ARCW NA Peers 1.28

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.

ARCW'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
ARCW 1.25 Peers 5.05   ARCW -41.17 Peers 24.25

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.

ARCW 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, ARCW 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
ARCW 0.51 Peers 2.09   ARCW 7.04 Peers 12.41

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.

ARCW 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.

ARCW significantly trails its peers on the basis of sales growth

 

 

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