SORL Auto Parts Inc

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SORL : NASDAQ : Consumer Goods
$3.86 | %
Today's Range: 3.8 - 3.99
Avg. Daily Volume: 484900.0
09/22/17 - 4:00 PM ET

Financial Analysis


SORL AUTO PARTS INC's gross profit margin for the second quarter of its fiscal year 2017 has decreased 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 weak liquidity. Currently, the Quick Ratio is 0.97 which shows a lack of 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 increased by 16.21% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)90.2173.54
EBITDA ($mil)9.79.92
EBIT ($mil)7.538.22
Net Income ($mil)5.927.24


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)8.2512.01
Total Assets ($mil)371.5266.05
Total Debt ($mil)47.0127.03
Equity ($mil)155.63133.91


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin28.6933.1
EBITDA Margin10.7513.49
Operating Margin8.3511.18
Sales Turnover0.830.88
Return on Assets6.565.88
Return on Equity15.6711.69
Debt Q2 FY17 Q2 FY16
Current Ratio1.481.88
Debt/Capital0.230.17
Interest Expense0.540.13
Interest Coverage13.8964.72


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)19.3119.31
Div / share0.00.0
EPS0.310.37
Book value / share8.066.94
Institutional Own % n/a n/a
Avg Daily Volume520255.01002708.0

Valuation


HOLD. SORL AUTO PARTS INC's P/E ratio indicates a significant discount compared to an average of 18.66 for the Auto Components industry and a significant discount compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 0.52 indicates a significant discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 4.49. 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 3.29 Peers 18.66   SORL 18.61 Peers 10.61

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 3.07 Peers 13.02   SORL 0.13 Peers 0.68

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 0.52 Peers 4.49   SORL 56.79 Peers -58.24

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 0.26 Peers 1.07   SORL 31.67 Peers 21.75

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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