ARIAD PHARMACEUTICALS INC's gross profit margin for the third quarter of its fiscal year 2014 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. ARIAD PHARMACEUTICALS INC is extremely liquid. Currently, the Quick Ratio is 3.85 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 68.05% 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||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||14.68||16.73|
|Net Income ($mil)||-50.11||-66.34|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||273.45||294.44|
|Total Assets ($mil)||483.69||406.81|
|Total Debt ($mil)||154.99||9.63|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||-311.49||-388.97|
|Return on Assets||-47.76||-64.02|
|Return on Equity||-284.87||-102.61|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||187.14||185.61|
|Div / share||0.0||0.0|
|Book value / share||0.43||1.37|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||6866769.0||7256748.0|
SELL. 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. For additional comparison, its price-to-book ratio of 14.93 indicates a significant premium versus the S&P 500 average of 2.73 and a significant premium versus the industry average of 11.88. 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, ARIAD PHARMACEUTICALS INC proves to trade at a premium to investment alternatives within the industry.
|ARIA NM||Peers 66.62||ARIA NM||Peers 32.94|
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.
ARIA'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.
ARIA's P/CF is negative making the measure meaningless.
|ARIA NM||Peers 27.29||ARIA NA||Peers 2.67|
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.
ARIA'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.
|ARIA 14.93||Peers 11.88||ARIA 14.49||Peers 32.82|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
ARIA is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, ARIA is expected to significantly trail its peers on the basis of its earnings growth rate.
|ARIA 25.80||Peers 194.60||ARIA 25.87||Peers 72.63|
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.
ARIA 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.
ARIA significantly trails its peers on the basis of sales growth
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