AU Optronics Corp

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AUO : NYSE : Technology
$4.05 | %
Today's Range: 4.00 - 4.12
Avg. Daily Volume: 908,300
08/26/16 - 4:02 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 Volume830813.0607233.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.71 indicates a significant discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 2.82. 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, 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 23.66   AUO 2.63 Peers 14.02

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 19.45 Peers 19.99   AUO NA Peers 1.47

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 0.71 Peers 2.82   AUO -140.00 Peers -12.51

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 0.39 Peers 2.26   AUO -22.75 Peers 25.28

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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