ARC Group Worldwide Inc

Find Ratings Reports
ARCW : NASDAQ : Industrial Goods
$4.35 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 37400.0
01/17/17 - 3:59 PM ET

Financial Analysis


ARC GROUP WORLDWIDE INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. ARC GROUP WORLDWIDE INC has weak liquidity. Currently, the Quick Ratio is 0.87 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 remained virtually unchanged only increasing by 4.99% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)26.8323.63
EBITDA ($mil)2.332.46
EBIT ($mil)-0.050.1
Net Income ($mil)3.58-0.47


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)3.864.15
Total Assets ($mil)116.28124.1
Total Debt ($mil)45.9360.11
Equity ($mil)47.2645.01


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin27.4927.36
EBITDA Margin8.6710.41
Operating Margin-0.180.41
Sales Turnover0.910.87
Return on Assets1.49-0.69
Return on Equity-5.17-2.27
Debt Q1 FY17 Q1 FY16
Current Ratio1.871.72
Debt/Capital0.490.57
Interest Expense1.111.14
Interest Coverage-0.040.09


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)18.819.03
Div / share0.00.0
EPS-0.03-0.04
Book value / share2.512.37
Institutional Own % n/a n/a
Avg Daily Volume37353.021519.0

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. To use another comparison, its price-to-book ratio of 1.77 indicates a discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 4.40. 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 28.89   ARCW 15.47 Peers 14.03

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 44.50 Peers 22.76   ARCW NA Peers 3.83

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

ARCW is trading at a significant premium 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ARCW 1.77 Peers 4.40   ARCW -116.66 Peers -21.32

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 0.79 Peers 1.90   ARCW -1.18 Peers -5.00

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.

 

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

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

 

 

Latest Stock Upgrades/Downgrades