Primero Mining Corp

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PPP : NYSE : Basic Materials
$0.4535 | %
Today's Range: 0.4461 - 0.4699
Avg. Daily Volume: 1233200.0
05/26/17 - 4:02 PM ET

Financial Analysis


PRIMERO MINING CORP's gross profit margin for the fourth quarter of its fiscal year 2016 has significantly 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. PRIMERO MINING CORP has weak liquidity. Currently, the Quick Ratio is 0.65 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.

At the same time, stockholders' equity ("net worth") has significantly decreased by 28.93% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)52.1871.4
EBITDA ($mil)-217.57-84.49
EBIT ($mil)-233.29-103.54
Net Income ($mil)-190.08-98.35


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)19.8845.6
Total Assets ($mil)677.82924.97
Total Debt ($mil)103.75115.14
Equity ($mil)461.13648.88


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin-403.75-105.25
EBITDA Margin-416.94-118.31
Operating Margin-447.08-145.0
Sales Turnover0.320.31
Return on Assets-34.58-11.55
Return on Equity-50.83-16.47
Debt Q4 FY16 Q4 FY15
Current Ratio0.961.04
Debt/Capital0.180.15
Interest Expense1.633.36
Interest Coverage-143.56-30.79


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)189.51164.19
Div / share0.00.0
EPS-1.01-0.6
Book value / share2.433.95
Institutional Own % n/a n/a
Avg Daily Volume1234138.01917132.0

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. Conducting a second comparison, its price-to-book ratio of 0.18 indicates a significant discount versus the S&P 500 average of 3.06 and a discount versus the industry average of 1.67. 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, PRIMERO MINING CORP 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
PPP NM Peers 32.68   PPP 6.51 Peers 11.07

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.

PPP'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.

PPP 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
PPP NA Peers 19.74   PPP NA Peers 0.69

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

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
PPP 0.18 Peers 1.67   PPP -95.38 Peers 237.48

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.

PPP 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, PPP 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
PPP 0.39 Peers 2.73   PPP -24.77 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.

PPP 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.

PPP significantly trails its peers on the basis of sales growth

 

 

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