AU Optronics Corp

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AUO : NYSE : Technology
$3.70 up 0.02 | 0.68%
Today's Range: 3.64 - 3.70
Avg. Daily Volume: 1,096,100
09/28/16 - 3:59 PM ET

Financial Analysis


AU OPTRONICS CORP's gross profit margin for the second quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. AU OPTRONICS CORP has weak liquidity. Currently, the Quick Ratio is 0.90 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 11.54% 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 FY16 Q2 FY15
Net Sales ($mil)2483.013024.65
EBITDA ($mil)309.5613.45
EBIT ($mil)3.77208.88
Net Income ($mil)-17.54147.49


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)2264.252906.54
Total Assets ($mil)12954.2214752.23
Total Debt ($mil)3641.814214.15
Equity ($mil)5300.195992.03


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin19.2726.24
EBITDA Margin12.4620.28
Operating Margin0.156.91
Sales Turnover0.740.84
Return on Assets-2.154.65
Return on Equity-5.2711.46
Debt Q2 FY16 Q2 FY15
Current Ratio1.191.15
Debt/Capital0.410.41
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)962.43962.43
Div / share0.00.0
EPS-0.010.15
Book value / share5.516.23
Institutional Own % n/a n/a
Avg Daily Volume1106001.0530221.0

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 0.68 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 2.86. 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, AU OPTRONICS CORP 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
AUO NM Peers 28.88   AUO 2.53 Peers 15.24

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.

AUO'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.

AUO 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
AUO 18.70 Peers 20.67   AUO NA Peers 1.60

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

AUO 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
AUO 0.68 Peers 2.86   AUO -140.00 Peers -15.53

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.

AUO 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, AUO 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
AUO 0.37 Peers 2.51   AUO -22.75 Peers 6.60

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.

AUO 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.

AUO significantly trails its peers on the basis of sales growth

 

 

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