CERES INC's gross profit margin for the second quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. CERES INC is extremely liquid. Currently, the Quick Ratio is 2.52 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 82.50% 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 FY16||Q2 FY15|
|Net Sales ($mil)||0.35||0.34|
|Net Income ($mil)||-1.05||-8.11|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||5.78||14.63|
|Total Assets ($mil)||8.64||18.46|
|Total Debt ($mil)||0.0||0.04|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||-914.25||-2316.62|
|Return on Assets||-214.61||-151.5|
|Return on Equity||-732.5||-193.26|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||16.69||6.03|
|Div / share||0.0||0.0|
|Book value / share||0.15||2.4|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||345304.0||307725.0|
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. To use another comparison, its price-to-book ratio of 1.65 indicates a discount versus the S&P 500 average of 2.76 and a significant discount versus the industry average of 11.60. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, CERES INC proves to trade at a discount to investment alternatives within the industry.
|CERE NM||Peers 205.35||CERE NM||Peers 30.10|
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.
CERE'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.
CERE's P/CF is negative making the measure meaningless.
|CERE NA||Peers 31.38||CERE NA||Peers 1.76|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.
Ratio not available.
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.
|CERE 1.65||Peers 11.60||CERE 42.59||Peers 32.25|
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.
CERE 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.
CERE is expected to have an earnings growth rate that significantly exceeds its peers.
|CERE 1.28||Peers 312.72||CERE 73.10||Peers 53.40|
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.
CERE is trading at a significant discount to its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
CERE has a sales growth rate that significantly exceeds its peers.
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