AMAG PHARMACEUTICALS INC's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though it increased sales and net income significantly, the company was unable to grow at a faster pace than its industry competitors. AMAG PHARMACEUTICALS INC is extremely liquid. Currently, the Quick Ratio is 10.68 which clearly shows the ability to cover any short-term cash needs. AMAG managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has increased by 12.80% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||24.8||19.65|
|Net Income ($mil)||-1.55||-1.91|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||386.47||212.87|
|Total Assets ($mil)||448.85||262.3|
|Total Debt ($mil)||164.13||0.0|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||81.22||80.1|
|Return on Assets||-2.77||-5.12|
|Return on Equity||-6.45||-7.86|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||21.96||21.65|
|Div / share||0.0||0.0|
|Book value / share||8.79||7.9|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||324878.0||434958.0|
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 2.80 indicates valuation on par with the S&P 500 average of 2.74 and a significant discount versus the industry average of 12.46. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, AMAG PHARMACEUTICALS INC proves to trade at a discount to investment alternatives within the industry.
|AMAG NM||Peers 86.69||AMAG NM||Peers 47.54|
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.
AMAG's P/E is negative making this valuation measure meaningless.
Neutral. 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.
AMAG's P/CF is negative making the measure meaningless.
|AMAG NM||Peers 40.48||AMAG NA||Peers 1.21|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
AMAG's ratio is negative making this valuation measure meaningless.
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.
|AMAG 2.80||Peers 12.46||AMAG 7.94||Peers 18.86|
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.
AMAG 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, AMAG is expected to significantly trail its peers on the basis of its earnings growth rate.
|AMAG 6.07||Peers 132.30||AMAG 16.42||Peers 398.21|
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.
AMAG 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.
AMAG significantly trails its peers on the basis of sales growth
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