ALERE INC's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. ALERE INC has average liquidity. Currently, the Quick Ratio is 1.23 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.59% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||629.16||647.4|
|Net Income ($mil)||19.9||-45.09|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||926.68||409.87|
|Total Assets ($mil)||6651.39||6990.67|
|Total Debt ($mil)||3598.96||3807.33|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||58.19||59.12|
|Return on Assets||3.63||-1.05|
|Return on Equity||-5.75||-4.54|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||85.55||82.78|
|Div / share||0.0||0.0|
|Book value / share||25.23||24.93|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||607911.0||466311.0|
BUY. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 2.10 indicates a discount versus the S&P 500 average of 2.67 and a significant discount versus the industry average of 14.26. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. After reviewing these and other key valuation criteria, ALERE INC proves to trade at a discount to investment alternatives within the industry.
|ALR NM||Peers 34.56||ALR 32.50||Peers 26.27|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
ALR's P/E is negative making this valuation measure meaningless.
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.
ALR is trading at a premium to its peers.
|ALR 18.52||Peers 24.33||ALR NA||Peers 0.84|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
ALR is trading at a discount to its peers.
Neutral. 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.
Ratio not available.
|ALR 2.10||Peers 14.26||ALR -31.57||Peers 8.95|
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.
ALR is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, ALR is expected to significantly trail its peers on the basis of its earnings growth rate.
|ALR 1.77||Peers 5.57||ALR 6.81||Peers 10.97|
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.
ALR is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
ALR significantly trails its peers on the basis of sales growth
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