DISCOVERY LABORATORIES INC's gross profit margin for the second quarter of its fiscal year 2014 has significantly increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. DISCOVERY LABORATORIES INC is extremely liquid. Currently, the Quick Ratio is 6.04 which clearly shows the ability to cover any short-term cash needs. DSCO 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.
At the same time, stockholders' equity ("net worth") has greatly increased by 133.14% 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.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||1.09||0.18|
|Net Income ($mil)||-10.62||-8.63|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||65.56||31.25|
|Total Assets ($mil)||69.47||33.91|
|Total Debt ($mil)||19.37||6.38|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||-980.79||-5847.8|
|Return on Assets||-66.28||-122.16|
|Return on Equity||-117.45||-246.33|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||85.21||54.79|
|Div / share||0.0||0.0|
|Book value / share||0.46||0.31|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||340429.0||326524.0|
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. Conducting a second comparison, its price-to-book ratio of 3.87 indicates a premium versus the S&P 500 average of 2.49 and a significant discount versus the industry average of 11.22. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, DISCOVERY LABORATORIES INC seems to be trading at a premium to investment alternatives within the industry.
|DSCO NM||Peers 79.53||DSCO NM||Peers 37.89|
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.
DSCO'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.
DSCO's P/CF is negative making the measure meaningless.
|DSCO NM||Peers 34.24||DSCO NA||Peers 1.17|
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.
DSCO'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.
|DSCO 3.87||Peers 11.22||DSCO 31.92||Peers 12.05|
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.
DSCO 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.
DSCO is expected to have an earnings growth rate that significantly exceeds its peers.
|DSCO 120.37||Peers 102.50||DSCO 180.17||Peers 378.68|
Premium. 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.
DSCO is trading at a premium to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
DSCO significantly trails its peers on the basis of sales growth
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV