0.01 | 0.62%
DISCOVERY LABORATORIES 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. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. DISCOVERY LABORATORIES INC is extremely liquid. Currently, the Quick Ratio is 2.30 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 1,296.59% 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 ($mil) | 0.2 | 0.0 |
| EBITDA ($mil) | -10.13 | -5.62 |
| EBIT ($mil) | -10.43 | -5.9 |
| Net Income ($mil) | -6.82 | -4.3 |
| Balance Sheet | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 26.89 | 10.19 |
| Total Assets ($mil) | 29.94 | 13.32 |
| Total Debt ($mil) | 0.22 | 0.29 |
| Equity ($mil) | 17.65 | 1.26 |
| Profitability | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Gross Profit Margin | -5194.87 | 0.0 |
| EBITDA Margin | -5194.87 | 0.0 |
| Operating Margin | -5346.15 | 0.0 |
| Sales Turnover | 0.01 | 0.04 |
| Return on Assets | -124.62 | -157.34 |
| Return on Equity | -211.38 | -1658.62 |
| Debt | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Current Ratio | 2.38 | 0.95 |
| Debt/Capital | 0.01 | 0.19 |
| Interest Expense | 0.0 | 0.01 |
| Interest Coverage | 0.0 | -1180.6 |
| Share Data | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Shares outstanding (mil) | 43.65 | 24.58 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.16 | -0.18 |
| Book value / share | 0.4 | 0.05 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 361859.0 | 250877.0 |
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 3.71 indicates a premium versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 9.88. 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, DISCOVERY LABORATORIES INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DSCO NM | Peers 32.50 | DSCO NM | Peers 48.70 | |||||||||||||||||||||
|
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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| DSCO NM | Peers 31.25 | DSCO NA | Peers 0.70 | |||||||||||||||||||||
|
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. |
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| Price/Book |
|
Earnings Growth |
|
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| DSCO 3.71 | Peers 9.88 | DSCO -7.52 | Peers 5.98 | |||||||||||||||||||||
|
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. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, DSCO is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
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| DSCO 340.91 | Peers 513.82 | DSCO -66.50 | Peers 69.95 | |||||||||||||||||||||
|
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. DSCO 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. DSCO significantly trails its peers on the basis of sales growth |
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