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Discovery Laboratories Inc.
DSCO : NASDAQ : Health Care

$1.90 | %
Today's Range: 1.88 - 1.96
Avg. Daily Volume: 673,800
04/17/14 - 3:59 PM ET

Financial Analysis


DISCOVERY LABORATORIES INC's gross profit margin for the fourth quarter of its fiscal year 2013 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. DISCOVERY LABORATORIES INC is extremely liquid. Currently, the Quick Ratio is 7.28 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 231.39% 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 Q4 FY13 Q4 FY12
Net Sales ($mil)0.070.2
EBITDA ($mil)0.0-10.13
EBIT ($mil)-10.27-10.43
Net Income ($mil)-11.73-6.82


Balance Sheet Q4 FY13 Q4 FY12
Cash & Equiv. ($mil)86.2826.89
Total Assets ($mil)89.3229.94
Total Debt ($mil)18.50.22
Equity ($mil)58.517.65


Profitability Q4 FY13 Q4 FY12
Gross Profit Margin-14063.01-5194.87
EBITDA Margin0.0-5194.87
Operating Margin-14063.01-5346.15
Sales Turnover0.00.01
Return on Assets-50.62-124.62
Return on Equity-77.28-211.38
Debt Q4 FY13 Q4 FY12
Current Ratio7.362.38
Debt/Capital0.240.01
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY13 Q4 FY12
Shares outstanding (mil)84.643.65
Div / share0.00.0
EPS-0.16-0.16
Book value / share0.690.4
Institutional Own % n/a n/a
Avg Daily Volume662562.0726890.0

Valuation


HOLD. 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 3.11 indicates a premium versus the S&P 500 average of 2.52 and a significant discount versus the industry average of 9.77. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DSCO NM Peers 43.67   DSCO NA Peers 48.86

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 is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DSCO NM Peers 28.19   DSCO NA Peers 1.05

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DSCO 3.11 Peers 9.77   DSCO 15.00 Peers -12.90

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DSCO 466.38 Peers 174.58   DSCO 98.97 Peers 42.84

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 significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

DSCO has a sales growth rate that significantly exceeds its peers.

 

 

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