Home > Quotes > LAYN > Guru Analysis > Peter Lynch
LAYN

Peter Lynch Guru Analysis for Layne Christensen Company

$21.56
*  
0.70
  negative  
3.14%
Get LAYN Alerts
*Delayed - data as of May 22, 2013 
Exchange: NASDAQ
Industry: Basic Industries
Community Rating:
 
 

Symbol List Views

Stock Details

CHARTS

COMPANY NEWS

STOCK ANALYSIS

FUNDAMENTALS

HOLDINGS

Edit Symbol List
Enter up to 25 symbols separated by commas or spaces in the text box below. These symbols will be available during your session for use on applicable pages.


Don't know the stock symbol? Use the symbol lookup tool.

Alphabetize the sort order of my symbols 
Symbol Lookup
Log in or Register
 Save stocks for next time

Assessments & Analysis Based on May 21, 2013 close price: $22.26

  for the P/E/Growth Investor based on the criteria of Peter Lynch. Return to LAYN Guru Analysis

All Star Guru Scorecard

Source Go Chart %
Peter Lynch 0%
Benjamin Graham 43%
Validea 18%
Motley Fool 5%
David Dreman 7%
Martin Zweig 8%
Kenneth Fisher 70%
James P. O'Shaughnessy 50%

   

Detailed Analysis

Guru Score: 0%

Determine the Classification:

LAYN is considered a "Stalwart", according to this methodology, for its earnings growth of 14.18%. This is based on Based on the average of the 3, 4 and 5 year historical EPS growth rates using the current fiscal year EPS estimate, which lies within a moderate 10%-19% range. This methodology looks for the "Stalwart" securities to gain 30%-50% in value over a two year period if they can be purchased at an attractive price based on the P/E to Growth ratio. However, LAYN is not considered a "True Stalwart" for its sales of $1,076 million are less than the multi-billion dollar level.


Inventory To Sales: [PASS]

When inventories increase faster than sales, it is a red flag. However an increase of up to 5% is considered bearable if all other ratios appear attractive. Inventory to sales for LAYN was 3.18% last year, while for this year it is 4.64%. Since inventory has been rising, this methodology would not look favorably at the stock but would not completely eliminate it from consideration as the inventory increase (1.46%) is below 5%.


Yield adjusted P/E to Growth (PEG) ratio: [FAIL]

The Yield-adjusted P/E/G ratio for LAYN is not available at the current time which means an opinion cannot be rendered at the present time. This criteria is the most important one in the methodology and a failure of it will automatically result in a 0% score for the overall analysis.


EARNINGS PER SHARE: [FAIL]

The EPS for a stalwart company must be positive. LAYN's EPS ($-.59) would not satisfy this criterion.


Total Debt/Equity Ratio: [PASS]

This methodology would consider the Debt/Equity ratio for LAYN (26.49%) to be acceptable (equity is three to ten times debt). This ratio is one quick way to determine the financial strength of the company.


FREE CASH FLOW: [NEUTRAL]

The Free Cash Flow/Price ratio, though not a requirement, is considered a bonus if it is above 35%. A positive Cash Flow (the higher the better) separates a wonderfully reliable investment from a shaky one. This methodology prefers not to invest in companies that rely heavily on capital spending. This ratio for LAYN (-12.17%) is too low to add to the attractiveness of the stock. Keep in mind, however, that it does not adversely affect the company as it is a bonus criteria.


NET CASH POSITION: [NEUTRAL]

Another bonus for a company is having a Net Cash/Price ratio above 30%. Lynch defines net cash as cash and marketable securities minus long term debt. According to this methodology, a high value for this ratio dramatically cuts down on the risk of the security. The Net Cash/Price ratio for LAYN (6.1%) is too low to add to the attractiveness of this company. Keep in mind, however, that it does not adversely affect the company as it is a bonus criteria.
 
  The names of individual investment advisors (i.e., the 'gurus') appearing ON THIS WEBSITE are for identification purposes ONLY. The names are used to identify the methodology as derived from the guru�s published sources. The names of the individual gurus are not intended to suggest or imply any affiliation with or endorsement of, or even any agreement with the information displayed on this website personally by such gurus, or any knowledge or approval by such persons of the content on this website. All trademarks, service marks and trade names appearing on this website are the property of their respective owners, and are likewise used for identification purposes only.
  The NASDAQ Stock Market, Inc. ("NASDAQ"), its affiliates, third party information providers, or any of these entities� officers, employees, directors, or agents have not: (1) passed on the merit of the information provided on this website or on any of these securities; or (2) endorsed or sponsored any of these securities. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED. The information contained on this website is provided for informational purposes only. See Full Disclaimer Below
See Full Disclaimer