Approach Resources Inc

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AREX : NASDAQ : Basic Materials
$2.71 | %
Today's Range: 2.645 - 2.81
Avg. Daily Volume: 983100.0
05/26/17 - 4:00 PM ET

Financial Analysis


APPROACH RESOURCES INC's gross profit margin for the first quarter of its fiscal year 2017 has significantly increased 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.

During the same period, stockholders' equity ("net worth") has decreased by 6.26% from the same quarter last year.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)26.3617.62
EBITDA ($mil)12.862.98
EBIT ($mil)-5.11-17.25
Net Income ($mil)-140.77-13.66


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)0.00.84
Total Assets ($mil)1098.031155.08
Total Debt ($mil)357.79495.96
Equity ($mil)558.51595.85


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin75.2354.47
EBITDA Margin48.7816.88
Operating Margin-19.37-97.95
Sales Turnover0.090.1
Return on Assets-16.33-15.58
Return on Equity-32.11-30.21
Debt Q1 FY17 Q1 FY16
Current Ratio0.410.58
Debt/Capital0.390.45
Interest Expense5.466.3
Interest Coverage-0.93-2.74


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)0.040.79
Div / share0.00.0
EPS-2.0-0.33
Book value / share0.014.61
Institutional Own % n/a n/a
Avg Daily Volume976651.01099219.0

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. Due to the lack of price valuation ratios for APPROACH RESOURCES INC, we cannot determine the premium or discount status of the shares at this time.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AREX NM Peers 146.61   AREX NA Peers 16.59

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.

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

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AREX NM Peers 24.08   AREX NA Peers 0.66

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.

AREX'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
AREX NA Peers 81.51   AREX 33.87 Peers 95.07

Neutral. 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.

Ratio not available.

 

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

However, AREX 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
AREX NA Peers 2.31   AREX -14.37 Peers 5.70

Neutral. 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.

Ratio not available.

 

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

AREX significantly trails its peers on the basis of sales growth

 

 

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