Memorial Production Partners LP

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MEMP : NASDAQ : Basic Materials
$1.87 up 0.05 | 2.70%
Today's Range: 1.83 - 1.89
Avg. Daily Volume: 493,500
08/29/16 - 3:58 PM ET

Financial Analysis


MEMORIAL PRODUCTION PRTRS LP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged 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. MEMORIAL PRODUCTION PRTRS LP has weak liquidity. Currently, the Quick Ratio is 0.51 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 45.62% 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 ($mil)68.0798.14
EBITDA ($mil)12.0723.53
EBIT ($mil)-35.06-24.44
Net Income ($mil)-147.55-113.92


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)0.00.16
Total Assets ($mil)2540.082934.43
Total Debt ($mil)1824.61823.65
Equity ($mil)454.24835.43


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin38.7938.36
EBITDA Margin17.7323.97
Operating Margin-51.5-24.9
Sales Turnover0.120.17
Return on Assets-11.99-0.56
Return on Equity-67.09-1.98
Debt Q2 FY16 Q2 FY15
Current Ratio2.191.7
Debt/Capital0.80.69
Interest Expense32.1427.91
Interest Coverage-1.09-0.88


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)83.4983.52
Div / share0.030.55
EPS-1.78-1.36
Book value / share5.4410.0
Institutional Own % n/a n/a
Avg Daily Volume500728.0793921.0

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 0.33 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 13.98. 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, MEMORIAL PRODUCTION PRTRS LP 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
MEMP NM Peers 74.63   MEMP 0.58 Peers 10.83

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.

MEMP'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.

MEMP 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
MEMP NM Peers 44.69   MEMP NA Peers 1.04

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

MEMP's ratio is negative making this valuation measure meaningless.

 

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
MEMP 0.33 Peers 13.98   MEMP -36800.00 Peers -231.15

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.

MEMP 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, MEMP 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
MEMP 0.51 Peers 2.57   MEMP -40.29 Peers -26.35

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.

MEMP 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.

MEMP significantly trails its peers on the basis of sales growth

 

 

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