AU Optronics Corp

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AUO : NYSE : Technology
$3.90 up 0.02 | 0.52%
Today's Range: 3.88 - 3.94
Avg. Daily Volume: 662,500
07/26/16 - 2:22 PM ET

Financial Analysis


AU OPTRONICS CORP's gross profit margin for the first quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its industry. AU OPTRONICS CORP has weak liquidity. Currently, the Quick Ratio is 0.81 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 8.25% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)2210.533050.64
EBITDA ($mil)149.6715.11
EBIT ($mil)-158.39286.59
Net Income ($mil)-170.2165.05


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)2288.842507.2
Total Assets ($mil)12662.7714557.01
Total Debt ($mil)3365.914204.45
Equity ($mil)5452.835943.57


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin14.4829.1
EBITDA Margin6.7623.44
Operating Margin-7.179.39
Sales Turnover0.80.89
Return on Assets-0.94.63
Return on Equity-2.0911.34
Debt Q1 FY16 Q1 FY15
Current Ratio1.11.12
Debt/Capital0.380.41
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)962.43962.43
Div / share0.00.0
EPS-0.180.17
Book value / share5.676.18
Institutional Own % n/a n/a
Avg Daily Volume646370.0640438.0

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 0.70 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 2.53. 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 30.89   AUO 2.23 Peers 13.16

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 19.85 Peers 18.72   AUO NA Peers 3.15

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.

AUO'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
AUO 0.70 Peers 2.53   AUO -117.39 Peers -21.26

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 0.38 Peers 2.27   AUO -21.25 Peers 19.06

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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