SORL Auto Parts Inc

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SORL : NASDAQ : Consumer Goods
$1.77 | %
Today's Range: 1.77 - 1.81
Avg. Daily Volume: 24,800
07/22/16 - 3:49 PM ET

Financial Analysis


SORL AUTO PARTS INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. SORL AUTO PARTS INC has strong liquidity. Currently, the Quick Ratio is 1.97 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)53.8452.2
EBITDA ($mil)1.945.89
EBIT ($mil)0.23.95
Net Income ($mil)0.433.05


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)65.749.57
Total Assets ($mil)317.22287.14
Total Debt ($mil)20.119.16
Equity ($mil)201.59201.01


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin30.0430.02
EBITDA Margin3.5911.27
Operating Margin0.387.57
Sales Turnover0.690.84
Return on Assets3.364.9
Return on Equity5.37.0
Debt Q1 FY16 Q1 FY15
Current Ratio2.843.69
Debt/Capital0.090.09
Interest Expense0.170.17
Interest Coverage1.1723.65


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)19.3119.31
Div / share0.00.0
EPS0.020.16
Book value / share10.4410.41
Institutional Own % n/a n/a
Avg Daily Volume24491.019466.0

Valuation


HOLD. SORL AUTO PARTS INC's P/E ratio indicates a significant discount compared to an average of 36.16 for the Auto Components industry and a significant discount compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 0.17 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 3.58. The price-to-sales ratio is well below both the S&P 500 average and 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 3.21 Peers 36.16   SORL 0.88 Peers 14.44

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.

 

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.

SORL 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
SORL 2.81 Peers 11.28   SORL NM Peers 0.84

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.

 

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.

SORL's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SORL 0.17 Peers 3.58   SORL -22.23 Peers -13.22

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 0.16 Peers 1.28   SORL -8.16 Peers 1.34

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SORL significantly trails its peers on the basis of sales growth

 

 

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