Primero Mining Corp

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PPP : NYSE : Basic Materials
$0.5902 up 0.023 | 4.1%
Today's Range: 0.5756 - 0.5951
Avg. Daily Volume: 1603000.0
03/27/17 - 11:01 AM ET

Financial Analysis


PRIMERO MINING CORP's gross profit margin for the third 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 0.70 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 decreased by 12.89% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)57.0179.22
EBITDA ($mil)7.532.44
EBIT ($mil)-8.7612.64
Net Income ($mil)-11.73-5.4


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)31.1643.1
Total Assets ($mil)918.061011.08
Total Debt ($mil)114.12115.58
Equity ($mil)649.26745.4


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin27.9447.16
EBITDA Margin13.1540.95
Operating Margin-15.3715.95
Sales Turnover0.260.29
Return on Assets-15.54-12.88
Return on Equity-21.97-17.48
Debt Q3 FY16 Q3 FY15
Current Ratio1.011.19
Debt/Capital0.150.13
Interest Expense2.052.79
Interest Coverage-4.284.53


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)188.25162.49
Div / share0.00.0
EPS-0.06-0.03
Book value / share3.454.59
Institutional Own % n/a n/a
Avg Daily Volume1619519.01872068.0

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 0.16 indicates a significant discount versus the S&P 500 average of 2.93 and a significant discount versus the industry average of 1.87. 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 76.59   PPP 2.02 Peers 10.33

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 21.71   PPP NA Peers 0.46

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 0.16 Peers 1.87   PPP -1.17 Peers 232.67

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 0.43 Peers 2.93   PPP -18.10 Peers 2.01

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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