ARC Group Worldwide Inc

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ARCW : NASDAQ : Industrial Goods
$3.3 up 0.05 | 1.54%
Today's Range: 3.25 - 3.35
Avg. Daily Volume: 18300.0
05/23/17 - 3:58 PM ET

Financial Analysis


ARC GROUP WORLDWIDE INC's gross profit margin for the second quarter of its fiscal year 2017 has 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 0.93 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 5.88% 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 FY17 Q2 FY16
Net Sales ($mil)28.223.84
EBITDA ($mil)2.522.39
EBIT ($mil)0.00.0
Net Income ($mil)-0.71-0.63


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1.223.87
Total Assets ($mil)113.03121.76
Total Debt ($mil)48.1159.39
Equity ($mil)46.9344.32


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin25.9127.29
EBITDA Margin8.9210.03
Operating Margin0.010.01
Sales Turnover0.970.86
Return on Assets1.46-1.17
Return on Equity-4.34-4.25
Debt Q2 FY17 Q2 FY16
Current Ratio2.261.89
Debt/Capital0.510.57
Interest Expense1.031.13
Interest Coverage0.00.0


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)18.819.03
Div / share0.00.0
EPS-0.01-0.05
Book value / share2.52.33
Institutional Own % n/a n/a
Avg Daily Volume18482.041247.0

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 1.26 indicates a significant discount versus the S&P 500 average of 3.00 and a significant discount versus the industry average of 4.82. 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 26.76   ARCW 17.39 Peers 15.45

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.

 

Premium. 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 premium 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 126.00 Peers 21.57   ARCW NA Peers 2.50

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 1.26 Peers 4.82   ARCW 0.00 Peers 23.25

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.

 

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

The growth rate for ARCW is not available.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ARCW 0.54 Peers 1.98   ARCW 4.97 Peers 12.53

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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