Layne Christensen Stock Analysis, Valuation (NASDAQ:LAYN)

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$14.76 $0.08 (0.54%) LAYN stock closing price Apr 23, 2018 (Closing)
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Layne Christensen
Updated on : Apr 23, 2018
previous close
LAYN 14.8 (0%)
S&P 500 2670.3 (0%)
Closing Price On: Apr 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Engineering R and D Services
Sector :
Construction
5 Quarter Revenue
Revenue Growth
2018-Q3
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-15.1%
Operating Profit
Operating Margin:
-5.8%
Sector Average:
7.5%
5 Quarter Net Profit
Net Margins
2018-Q3
%
LTM Margin
Debt/Equity Ratio
Debt:
165.1M
Debt/Equity Ratio:
 3.06
Compared to the industry
Cash Flow
Operating cash flow:
$2.4M
Net Income:
-$2.1M
PROS      CONS
PS Valuation
Recent Growth
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
ROIC
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
LAYN PS :
0.6
Industry PS :
0.9
Sector:   Construction.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-8.2%
Return on Equity:
-85.9%
Free Cash Flow Margin:
-6.4%
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Layne Christensen Stock Analysis

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Investors can watch the Amigobulls Layne Christensen stock analysis video here. Our analyst opinion covering the buy and sell arguments for LAYN stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Layne Christensen Company Stock Rating 1.4/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for LAYN stock analysis. Layne Christensen valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Layne Christensen stock rating is our opinion about the business fundamentals of the company.

Should you buy LAYN stock?

  • When compared with the Engineering R and D Services industry average PS ratio of 0.9, the price-to-sales ratio of 0.6 for LAYN stock is attractive.

Should you sell LAYN stock?

  • Layne Christensen sales shrank by -17% year-over-year in 2018 Q3.
  • Sales declined by -15.1% annually over the last 5 years.
  • Layne Christensen registered a negative operating margin of -5.8% (average) over the Trailing Twelve Months (TTM).
  • Over the last 12 months, Layne Christensen had an average Net loss of -12.7%.
  • With a debt/equity ratio of  3.06, Layne Christensen is highly leveraged in comparison to Construction peers.
  • PE ratio is meaningless for LAYN stock as the company has losses.
  • The company has a negative Return on Invested Capital of -8.2%, which is a red flag.
  • A negative ROE of -85.9% indicates that the company is not able to generate profits with the money shareholders have invested.
  • The company has a negative free cash flow margin of -6.4%.

Comments on this video and Layne Christensen stock

Amigobulls Layne Christensen stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Company's fundamentals remain one of the key driver of LAYN stock and helps investors in making good buy and sell decision.

Layne Christensen revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.