Harsco Corp

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HSC : NYSE : Basic Materials
$19.75 | %
Today's Range: 19.32 - 19.7508
Avg. Daily Volume: 481600.0
09/22/17 - 4:01 PM ET

Financial Analysis


HARSCO CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. HARSCO CORP has weak liquidity. Currently, the Quick Ratio is 0.81 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 44.70% 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 FY17 Q2 FY16
Net Sales ($mil)394.9369.93
EBITDA ($mil)76.1177.32
EBIT ($mil)44.5542.61
Net Income ($mil)19.04-26.17


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)62.7869.24
Total Assets ($mil)1646.281959.02
Total Debt ($mil)639.91878.06
Equity ($mil)143.93260.29


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin33.6934.54
EBITDA Margin19.2720.9
Operating Margin11.2811.52
Sales Turnover0.910.79
Return on Assets-1.25-2.68
Return on Equity-13.81-20.49
Debt Q2 FY17 Q2 FY16
Current Ratio1.311.37
Debt/Capital0.820.77
Interest Expense12.4113.81
Interest Coverage3.593.09


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)80.4280.18
Div / share0.00.0
EPS0.22-0.35
Book value / share1.793.25
Institutional Own % n/a n/a
Avg Daily Volume505800.0532869.0

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. For additional comparison, its price-to-book ratio of 9.97 indicates a significant premium versus the S&P 500 average of 3.10 and a significant premium versus the industry average of 6.16. 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 premium 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
HSC NM Peers 125.40   HSC 8.05 Peers 19.02

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.

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HSC 24.79 Peers 22.16   HSC NA Peers 1.21

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

HSC is trading at a 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
HSC 9.97 Peers 6.16   HSC 59.10 Peers 16.67

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

HSC is trading at a significant premium to its peers.

 

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

HSC 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
HSC 0.96 Peers 2.07   HSC -2.83 Peers 6.91

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

 

 

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