Harsco CorpFind Ratings Reports
HARSCO CORP's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. HARSCO CORP has weak liquidity. Currently, the Quick Ratio is 0.75 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 remained virtually unchanged only decreasing by 2.05% 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 ($mil)||369.93||455.75|
|Net Income ($mil)||-26.17||6.58|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||69.24||67.15|
|Total Assets ($mil)||1959.02||2256.31|
|Total Debt ($mil)||878.06||943.17|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||34.54||29.49|
|Return on Assets||-2.68||0.09|
|Return on Equity||-20.49||1.04|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||80.18||80.09|
|Div / share||0.0||0.21|
|Book value / share||3.25||3.32|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||880573.0||994617.0|
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. To use another comparison, its price-to-book ratio of 3.14 indicates a premium versus the S&P 500 average of 2.82 and a discount versus the industry average of 4.13. 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, HARSCO CORP proves to trade at a discount to investment alternatives within the industry.
|HSC NM||Peers 26.28||HSC 7.79||Peers 18.42|
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.
HSC'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.
HSC is trading at a significant discount to its peers.
|HSC 18.55||Peers 22.22||HSC NA||Peers 7.31|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
HSC 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.
|HSC 3.14||Peers 4.13||HSC -1750.00||Peers -25.43|
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.
HSC 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, HSC is expected to significantly trail its peers on the basis of its earnings growth rate.
|HSC 0.53||Peers 1.88||HSC -20.09||Peers -5.18|
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.
HSC 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.
HSC significantly trails its peers on the basis of sales growth