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Venaxis Inc
APPY : NASDAQ : Health Care

$1.69 0.01 | 0.60%
Today's Range: 1.67 - 1.72
Avg. Daily Volume: 116,700
05/17/13 - 3:59 PM ET

Financial Analysis


VENAXIS INC's gross profit margin for the fourth quarter of its fiscal year 2012 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its industry. VENAXIS INC is extremely liquid. Currently, the Quick Ratio is 2.98 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 179.43% 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.



Income Statement Q4 FY12 Q4 FY11
Net Sales ($mil)0.020.05
EBITDA ($mil)-2.34-2.33
EBIT ($mil)-2.44-2.45
Net Income ($mil)-2.5-1.56


Balance Sheet Q4 FY12 Q4 FY11
Cash & Equiv. ($mil)12.143.97
Total Assets ($mil)16.628.73
Total Debt ($mil)3.053.7
Equity ($mil)10.693.83


Profitability Q4 FY12 Q4 FY11
Gross Profit Margin-13016.67-4305.56
EBITDA Margin-13016.66-4305.55
Operating Margin-13544.44-4527.78
Sales Turnover0.00.03
Return on Assets-55.44-117.02
Return on Equity-86.16-266.96
Debt Q4 FY12 Q4 FY11
Current Ratio3.072.09
Debt/Capital0.220.49
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY12 Q4 FY11
Shares outstanding (mil)9.951.61
Div / share0.00.0
EPS-0.87-0.96
Book value / share1.072.38
Institutional Own % n/a n/a
Avg Daily Volume117729.0247776.0

Valuation


SELL. 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 1.60 indicates a discount versus the S&P 500 average of 2.40 and a significant discount versus the industry average of 9.29. 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, VENAXIS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
APPY NM Peers 31.28   APPY NM Peers 47.71

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.

APPY'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.

APPY's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
APPY NM Peers 29.97   APPY NA Peers 0.67

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.

APPY'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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
APPY 1.60 Peers 9.29   APPY 51.89 Peers 17.71

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.

APPY is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

APPY is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
APPY 273.02 Peers 436.93   APPY -77.66 Peers 66.25

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.

APPY 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.

APPY significantly trails its peers on the basis of sales growth

 

 

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