0.19 | 22.15%
ENTEROMEDICS INC's gross profit margin for the third quarter of its fiscal year 2012 has significantly increased when compared to the same period a year ago. Sales have remained unchanged, but net income increased. ENTEROMEDICS INC is extremely liquid. Currently, the Quick Ratio is 4.38 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 38.33% 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 | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Net Sales ($mil) | 0.0 | 0.0 |
| EBITDA ($mil) | -5.52 | -7.05 |
| EBIT ($mil) | -5.57 | -7.13 |
| Net Income ($mil) | -5.85 | -7.3 |
| Balance Sheet | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 27.42 | 35.65 |
| Total Assets ($mil) | 30.72 | 37.0 |
| Total Debt ($mil) | 9.63 | 5.7 |
| Equity ($mil) | 16.81 | 27.27 |
| Profitability | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Gross Profit Margin | 0.0 | 0.0 |
| EBITDA Margin | 0.0 | 0.0 |
| Operating Margin | 0.0 | 0.0 |
| Sales Turnover | 0.01 | 0.0 |
| Return on Assets | -79.71 | -59.18 |
| Return on Equity | -145.66 | -80.31 |
| Debt | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Current Ratio | 4.72 | 5.77 |
| Debt/Capital | 0.36 | 0.17 |
| Interest Expense | 0.26 | 0.17 |
| Interest Coverage | -21.11 | -42.46 |
| Share Data | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Shares outstanding (mil) | 41.56 | 36.75 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.14 | -0.26 |
| Book value / share | 0.4 | 0.74 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 324905.0 | 175149.0 |
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. For additional comparison, its price-to-book ratio of 7.02 indicates a significant premium versus the S&P 500 average of 2.25 and a significant premium versus the industry average of 3.87. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, ENTEROMEDICS INC seems to be trading at a premium to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ETRM NM | Peers 22.09 | ETRM NM | Peers 16.77 | |||||||||||||||||||||
|
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. ETRM'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. ETRM's P/CF is negative making the measure meaningless. |
|||||||||||||||||||||||
| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| ETRM NM | Peers 19.44 | ETRM NA | Peers 1.23 | |||||||||||||||||||||
|
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. ETRM'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 |
|
Earnings Growth |
|
|||||||||||||||||||||
| ETRM 7.02 | Peers 3.87 | ETRM 34.70 | Peers -21.93 | |||||||||||||||||||||
|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ETRM is trading at a significant premium to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. ETRM is expected to have an earnings growth rate that significantly exceeds its peers. |
|||||||||||||||||||||||
| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| ETRM 378.67 | Peers 8.65 | ETRM NA | Peers 6.43 | |||||||||||||||||||||
|
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. ETRM is trading at a significant premium to its industry. |
Neutral. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share. The growth rate for ETRM is not available. |
|||||||||||||||||||||||
