Joy Global Inc

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JOY : NYSE : Industrial Goods
$27.63 | %
Today's Range: 27.62 - 27.79
Avg. Daily Volume: 4,413,800
07/29/16 - 4:05 PM ET

Financial Analysis


JOY GLOBAL INC's gross profit margin for the second quarter of its fiscal year 2016 has 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. JOY GLOBAL INC has average liquidity. Currently, the Quick Ratio is 1.01 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 49.67% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)601.99810.52
EBITDA ($mil)65.48135.65
EBIT ($mil)28.17103.16
Net Income ($mil)-9.8455.96


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)160.88192.09
Total Assets ($mil)3508.15397.66
Total Debt ($mil)1006.841282.29
Equity ($mil)1379.772741.88


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin30.2532.92
EBITDA Margin10.8716.73
Operating Margin4.6812.73
Sales Turnover0.790.65
Return on Assets-37.475.45
Return on Equity-95.6610.74
Debt Q2 FY16 Q2 FY15
Current Ratio2.332.29
Debt/Capital0.420.32
Interest Expense12.4416.25
Interest Coverage2.266.35


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)98.1497.45
Div / share0.010.2
EPS-0.160.57
Book value / share14.0628.14
Institutional Own % n/a n/a
Avg Daily Volume4122766.04103448.0

Valuation


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 2.01 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 3.79. 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, JOY GLOBAL 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
JOY NM Peers 24.52   JOY 6.06 Peers 16.07

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.

JOY'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.

JOY 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
JOY 62.67 Peers 21.65   JOY NA Peers 3.66

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

JOY is trading at a significant 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
JOY 2.01 Peers 3.79   JOY -555.55 Peers -27.70

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.

JOY 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, JOY 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
JOY 0.99 Peers 1.63   JOY -20.94 Peers -5.12

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.

JOY 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.

JOY significantly trails its peers on the basis of sales growth

 

 

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