SORL Auto Parts Inc

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SORL : NASDAQ : Consumer Goods
$8.69 | %
Today's Range: 8.12 - 8.85
Avg. Daily Volume: 791800.0
05/26/17 - 4:00 PM ET

Financial Analysis


SORL AUTO PARTS INC's gross profit margin for the fourth quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. SORL AUTO PARTS INC has average liquidity. Currently, the Quick Ratio is 1.14 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.

At the same time, stockholders' equity ("net worth") has significantly decreased by 30.52% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)82.8756.86
EBITDA ($mil)10.218.52
EBIT ($mil)8.336.87
Net Income ($mil)8.315.95


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)13.5392.03
Total Assets ($mil)301.33320.55
Total Debt ($mil)27.4226.89
Equity ($mil)139.06200.16


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin23.0227.78
EBITDA Margin12.3214.98
Operating Margin10.0512.09
Sales Turnover0.90.68
Return on Assets6.374.15
Return on Equity13.826.64
Debt Q4 FY16 Q4 FY15
Current Ratio1.722.73
Debt/Capital0.160.12
Interest Expense0.370.47
Interest Coverage22.4514.78


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)19.3119.31
Div / share0.00.0
EPS0.430.31
Book value / share7.210.37
Institutional Own % n/a n/a
Avg Daily Volume780355.0129164.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 18.04 for the Auto Components industry and a significant discount compared to the S&P 500 average of 25.54. For additional comparison, its price-to-book ratio of 1.16 indicates a significant discount versus the S&P 500 average of 3.06 and a significant discount versus the industry average of 3.87. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, SORL AUTO PARTS 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
SORL 8.40 Peers 18.04   SORL 29.59 Peers 11.34

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SORL is trading at a significant discount to its peers.

 

Premium. 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.

SORL is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SORL 6.12 Peers 11.61   SORL 0.29 Peers 0.74

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

SORL is trading at a significant discount to its peers.

 

Discount. 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.

SORL trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SORL 1.16 Peers 3.87   SORL 41.42 Peers 66.21

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.

SORL 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, SORL 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
SORL 0.59 Peers 1.01   SORL 24.45 Peers 12.48

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.

SORL is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SORL has a sales growth rate that significantly exceeds its peers.

 

 

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