DryShips Inc

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DRYS : NASDAQ : Services
$0.34 -0.03 | -8.16%
Today's Range: 0.32 - 0.37
Avg. Daily Volume: 1,737,000
07/29/16 - 4:00 PM ET

Financial Analysis


DRYSHIPS INC'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; although net income growth outperformed the average competitor in its industry, revenue growth did not. DRYSHIPS INC has very weak liquidity. Currently, the Quick Ratio is 0.11 which clearly 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.

At the same time, stockholders' equity ("net worth") has significantly decreased by 99.76% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)11.86492.11
EBITDA ($mil)-15.74239.59
EBIT ($mil)-16.6120.9
Net Income ($mil)-106.82-59.16


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)5.74576.59
Total Assets ($mil)287.1210764.89
Total Debt ($mil)213.325920.09
Equity ($mil)7.02932.44


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin-49.3257.48
EBITDA Margin-132.748.68
Operating Margin-139.9724.57
Sales Turnover1.860.21
Return on Assets-1008.2-0.66
Return on Equity-41341.31-2.45
Debt Q1 FY16 Q1 FY15
Current Ratio0.481.11
Debt/Capital0.970.67
Interest Expense3.3184.96
Interest Coverage-5.011.42


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)26.8826.88
Div / share0.00.0
EPS-4.01-2.25
Book value / share0.26109.08
Institutional Own % n/a n/a
Avg Daily Volume1553317.03087725.0

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 2.23 indicates a discount versus the S&P 500 average of 2.81 and a discount versus the industry average of 2.65. 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, DRYSHIPS 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
DRYS NM Peers 36.58   DRYS 0.09 Peers 11.48

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.

DRYS'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.

DRYS 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
DRYS NA Peers 78.27   DRYS NA Peers 0.17

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

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
DRYS 2.23 Peers 2.65   DRYS -4250.40 Peers -202.07

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.

DRYS is trading at a discount to its peers.

 

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

However, DRYS 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
DRYS 0.03 Peers 2.57   DRYS -75.89 Peers -33.46

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.

DRYS 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.

DRYS significantly trails its peers on the basis of sales growth

 

 

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