Approach Resources Inc

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AREX : NASDAQ : Basic Materials
$2.41 up 0.14 | 6.17%
Today's Range: 2.13 - 2.435
Avg. Daily Volume: 1005600.0
03/28/17 - 4:00 PM ET

Financial Analysis


APPROACH RESOURCES INC's gross profit margin for the fourth quarter of its fiscal year 2016 has 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 7.40% from the same quarter last year.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)26.5125.49
EBITDA ($mil)12.349.99
EBIT ($mil)-7.06-13.18
Net Income ($mil)-13.48-5.76


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)0.00.6
Total Assets ($mil)1104.561174.98
Total Debt ($mil)498.35496.59
Equity ($mil)562.95607.97


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin75.6661.51
EBITDA Margin46.5639.2
Operating Margin-26.63-51.7
Sales Turnover0.080.11
Return on Assets-4.72-14.81
Return on Equity-9.28-28.63
Debt Q4 FY16 Q4 FY15
Current Ratio0.470.72
Debt/Capital0.470.45
Interest Expense7.096.44
Interest Coverage-1.0-2.05


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)41.6140.79
Div / share0.00.0
EPS-0.32-0.14
Book value / share13.5314.91
Institutional Own % n/a n/a
Avg Daily Volume1008795.01235006.0

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 0.17 indicates a significant discount versus the S&P 500 average of 2.93 and a significant discount versus the industry average of 34.30. 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, APPROACH RESOURCES 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
AREX NM Peers 145.99   AREX 3.65 Peers 11.89

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.

 

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.

AREX 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
AREX NM Peers 32.69   AREX NA Peers 0.89

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 0.17 Peers 34.30   AREX 70.63 Peers 26.59

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.

AREX 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.

AREX 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
AREX 1.06 Peers 2.49   AREX -31.25 Peers -10.14

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.

AREX 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.

AREX significantly trails its peers on the basis of sales growth

 

 

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