SORL Auto Parts Inc

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SORL : NASDAQ : Consumer Goods
$3.85 | %
Today's Range: 3.75 - 3.9
Avg. Daily Volume: 422600.0
12/02/16 - 4:00 PM ET

Financial Analysis


SORL AUTO PARTS INC'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. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. SORL AUTO PARTS INC has average liquidity. Currently, the Quick Ratio is 1.21 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, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 34.42% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)73.5459.28
EBITDA ($mil)7.884.13
EBIT ($mil)6.182.15
Net Income ($mil)7.242.26


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)12.0170.32
Total Assets ($mil)266.05301.2
Total Debt ($mil)27.0323.74
Equity ($mil)133.91204.2


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin30.3231.21
EBITDA Margin10.726.96
Operating Margin8.413.63
Sales Turnover0.880.77
Return on Assets5.884.05
Return on Equity11.695.97
Debt Q2 FY16 Q2 FY15
Current Ratio1.883.31
Debt/Capital0.170.1
Interest Expense0.130.24
Interest Coverage48.678.9


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)19.3119.31
Div / share0.00.0
EPS0.370.12
Book value / share6.9410.58
Institutional Own % n/a n/a
Avg Daily Volume420555.0216606.0

Valuation


HOLD. SORL AUTO PARTS INC's P/E ratio indicates a significant discount compared to an average of 19.23 for the Auto Components industry and a significant discount compared to the S&P 500 average of 25.16. For additional comparison, its price-to-book ratio of 0.60 indicates a significant discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 3.51. 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 5.15 Peers 19.23   SORL 3.82 Peers 8.99

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 6.32 Peers 11.38   SORL 0.59 Peers 0.51

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SORL 0.60 Peers 3.51   SORL 28.57 Peers 11.77

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

SORL is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SORL 0.34 Peers 1.13   SORL 0.49 Peers 10.38

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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