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EMCORE Corp
EMKR : : Technology
$5.70 | %
Today's Range: 5.68 - 5.77
Avg. Daily Volume: 309,800
04/29/16 - 4:00 PM ET

Financial Analysis


EMCORE CORP's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged 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. EMCORE CORP is extremely liquid. Currently, the Quick Ratio is 6.01 which clearly shows the ability to cover any short-term cash needs. EMKR 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.

During the same period, stockholders' equity ("net worth") has decreased by 19.73% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)22.4918.42
EBITDA ($mil)0.53-3.42
EBIT ($mil)0.02-4.66
Net Income ($mil)0.9956.13


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)116.62147.98
Total Assets ($mil)160.21218.97
Total Debt ($mil)0.00.0
Equity ($mil)136.88170.52


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin35.1634.82
EBITDA Margin2.33-18.58
Operating Margin0.09-25.29
Sales Turnover0.540.27
Return on Assets4.9628.78
Return on Equity0.522.8
Debt Q1 FY16 Q1 FY15
Current Ratio6.894.38
Debt/Capital0.00.0
Interest Expense0.020.0
Interest Coverage1.180.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)25.7131.61
Div / share0.00.0
EPS0.0-0.1
Book value / share5.325.39
Institutional Own % n/a n/a
Avg Daily Volume306355.0268754.0

Valuation


HOLD. EMCORE CORP's P/E ratio indicates a significant premium compared to an average of 24.53 for the Communications Equipment industry and a significant premium compared to the S&P 500 average of 24.17. For additional comparison, its price-to-book ratio of 1.10 indicates a significant discount versus the S&P 500 average of 2.76 and a significant discount versus the industry average of 3.26. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
EMKR 145.75 Peers 24.53   EMKR NM Peers 16.61

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

EMKR is trading at a significant premium to its peers.

 

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.

EMKR's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
EMKR 19.76 Peers 17.71   EMKR NM Peers 1.41

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

EMKR is trading at a significant premium to its peers.

 

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.

EMKR's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EMKR 1.10 Peers 3.26   EMKR -73.34 Peers 14.96

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.

EMKR 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, EMKR is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EMKR 1.75 Peers 3.05   EMKR 44.69 Peers 6.36

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.

EMKR 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.

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

 

 

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