Sound Global Ltd.

    Sound Global Ltd.

    OOTC:SGXXF
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    USD
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    9.97P/E

    Share Statistics

    As of December 31, 2013, Sound Global Ltd. has 1.29B shares outstanding.

    Shares Outstanding1.29B

    Valuation Ratios

    As of December 31, 2013, Sound Global Ltd. trades at a trailing price-to-earnings ratio of 9.97. The price-to-sales ratio is 1.34, and the price-to-book ratio stands at 1.45.

    PE Ratio9.97
    PS Ratio1.34
    PB Ratio1.45
    P/TBV Ratio1.41
    P/FCF Ratio37.31
    P/OCF Ratio36.06

    Enterprise Valuation

    As of December 31, 2013, Sound Global Ltd. trades at an EV/EBITDA multiple of 5.65 - the valuation measure that neutralizes differences in capital structure, tax rates, and depreciation policy, making it the standard yardstick for comparing companies across an industry. The EV/Sales ratio of 1.38 reflects the premium investors pay for the company's revenue stream, a useful check when earnings are depressed or negative. Its EV/EBIT multiple of 5.65 values the business against core operating earnings after depreciation, a stricter test than EV/EBITDA for capital-intensive businesses. Sound Global Ltd. trades at an EV/FCF ratio of 12.87, comparing the total takeover cost of the business to the cash it actually generates for all capital providers.

    EV / Sales1.38
    EV / EBITDA5.65
    EV / EBIT5.65
    EV / FCF12.87

    Financial Position

    As of December 31, 2013, Sound Global Ltd. maintains a current ratio of 2.39, meaning it holds 2.4x the short-term assets needed to cover near-term liabilities. The debt-to-equity ratio is 119.67, indicating elevated leverage, while an interest coverage ratio of 2.70 demonstrates limited ability to service its debt obligations.

    Current Ratio2.39
    Quick Ratio1.37
    Debt / Equity119.67
    Debt / EBITDA4.90
    Interest Coverage2.70

    Financial Efficiency

    Over the twelve months ended December 31, 2013, Sound Global Ltd. posted a return on equity (ROE) of 15.77, showing how much profit the company earns on every dollar of shareholder capital. Return on invested capital (ROIC) comes in at 8.89 - the clearest signal of whether the business earns more on its capital than that capital costs, and the core measure of a durable competitive advantage. Return on assets (ROA) stands at 5.30, measuring how efficiently the asset base is converted into earnings. Return on capital employed (ROCE) is 10.58, useful for judging operating efficiency across full business cycles. Inventory turnover of 82.80 indicates how many times Sound Global Ltd. sells and replaces its inventory over a year, a key working capital efficiency ratio.

    Return on Equity (ROE)15.77
    Return on Assets (ROA)5.30
    Return on Invested Capital (ROIC)8.89
    Return on Capital Employed (ROCE)10.58
    Inventory Turnover82.80

    Taxes

    These figures cover the twelve months ended December 31, 2013. That works out to an effective tax rate of 24.87, which can sit above or below the statutory corporate tax rate depending on foreign earnings mix, tax credits, and one-off items.

    Effective Tax Rate24.87

    Margins

    Over the twelve months ended December 31, 2013, Sound Global Ltd. posted a gross margin of 30.52, reflecting its pricing power and cost economics. The operating margin of 24.50 and net profit margin of 13.48 provide insight into operational efficiency.

    Gross Margin30.52
    Operating Margin24.50
    Pretax Margin18.03
    Profit Margin13.48
    EBITDA Margin24.50

    Dividends & Yields

    These figures cover the twelve months ended December 31, 2013. Free cash flow yield stands at 2.68, showing how much cash the business generates relative to its market value - dividends covered by free cash flow are generally more durable than those funded by debt. Total shareholder yield is negative at -15.64, meaning Sound Global Ltd. raised more capital through share issuance and new debt than it returned via dividends and buybacks.

    Shareholder Yield-15.64
    FCF Yield2.68

    Stock Splits

    Sound Global Ltd.'s most recent stock split took place on March 10, 2008 with a 1:3 split ratio.

    Last Split Date3/10/2008
    Split Ratio1:3

    Scores

    As of December 31, 2013, Sound Global Ltd. has an Altman Z-Score of 1.91, near the 3.0 threshold that indicates strong financial health and minimal bankruptcy risk.

    Altman Z-Score1.91