Harmony Gold Mining Co Ltd

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HMY : NYSE : Basic Materials
$3.50 | %
Today's Range: 3.45 - 3.62
Avg. Daily Volume: 4,982,900
09/23/16 - 4:02 PM ET

Financial Analysis


HARMONY GOLD MINING CO LTD's gross profit margin for the second quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. HARMONY GOLD MINING CO LTD has weak liquidity. Currently, the Quick Ratio is 0.80 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 33.38% 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 ($mil)263.31313.81
EBITDA ($mil)61.828.04
EBIT ($mil)31.75-22.94
Net Income ($mil)8.94-73.68


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)57.68120.34
Total Assets ($mil)2354.463462.94
Total Debt ($mil)219.26270.39
Equity ($mil)1737.942608.97


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin27.1514.14
EBITDA Margin23.478.93
Operating Margin12.06-7.31
Sales Turnover0.480.41
Return on Assets-12.95-6.04
Return on Equity-17.55-8.02
Debt Q2 FY16 Q2 FY15
Current Ratio1.450.74
Debt/Capital0.110.09
Interest Expense3.985.69
Interest Coverage7.98-4.03


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)436.79436.09
Div / share0.00.0
EPS0.02-0.17
Book value / share3.985.98
Institutional Own % n/a n/a
Avg Daily Volume5007188.06013343.0

Valuation


HOLD. 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. Conducting a second comparison, its price-to-book ratio of 1.14 indicates a significant discount versus the S&P 500 average of 2.83 and a discount versus the industry average of 2.05. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. After reviewing these and other key valuation criteria, HARMONY GOLD MINING CO LTD 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
HMY NM Peers 158.20   HMY 10.71 Peers 13.84

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.

HMY'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.

HMY is trading at a 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
HMY 7.28 Peers 39.87   HMY NA Peers 0.95

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

HMY is trading at a valuation on par with 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
HMY 1.14 Peers 2.05   HMY -47.91 Peers -139.12

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.

HMY 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.

HMY 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
HMY 1.76 Peers 3.94   HMY -20.02 Peers -14.93

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.

HMY 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.

HMY significantly trails its peers on the basis of sales growth

 

 

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