Good to hear from you again, bmillermn. One never knows when you'll suddenly make an appearance !! (:-)
With regard to your request regarding MOD, I’ve had a look with regard to several ratios that I prefer a company to meet or exceed in terms of their percentage ratios. I looked at MOD’s last Annual financial statements (2011/03) and then also at their last 12 months results in terms of their last Q3, Q2, Q1 and Q4(2011/03) quarterly results ......
ANNUAL RESULTS (2011/03) :-
EBITDA/Revenue ratio = 7.08%. Too low for me
Interest Expense/EBITDA = 32.85%. Very high.
Pretax Income/Capital Employed = 2.12%. Far too low for me.
12 MONTH’S RESULTS :-
EBITDA/Revenue ratio = 7.01%. Too low for me
Interest Expense/EBITDA = 11.43%. Borderline high.
Pretax Income/Capital Employed = 5.84%. Far too low for me.
So, for me it’s not a company that I would want to invest in at the current time as these ratios are not where I’d like them to be.
However, a positive is the fact that the company’s debt expense is currently eroding far less of its revenue than it had been doing nearly a year ago.
In addition, although its Pretax Return on Capital is still very low, it has at least more than doubled in the last 9 months.
Therefore if you still have shares in the company, it may be an idea to hold on until MOD’s next Quarterly and Annual Results are published sometime in June this year, based on previous release dates. If MOD continues to show improvement, then this could very likely be reflected in its forward share price.
Of course, there's more to a company's evaluation than just a selection of critical financial ratios. I’m sure you’re better informed than I am regarding MOD’s position in its market and its share of that market, as well as the quality of its management.
That, coupled with the current improvement in its financials, may help you decide what to do about your investment in MOD.
Best wishes ..... |
