GENOMIC HEALTH INC's gross profit margin for the fourth quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. GENOMIC HEALTH INC is extremely liquid. Currently, the Quick Ratio is 3.61 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained unchanged 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 FY14||Q4 FY13|
|Net Sales ($mil)||69.13||68.82|
|Net Income ($mil)||-6.27||-9.37|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||103.66||105.35|
|Total Assets ($mil)||185.92||177.03|
|Total Debt ($mil)||0.0||0.0|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||84.34||86.54|
|Return on Assets||-13.22||-7.2|
|Return on Equity||-16.9||-8.79|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||31.91||30.96|
|Div / share||0.0||0.0|
|Book value / share||4.56||4.68|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||132754.0||152647.0|
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. To use another comparison, its price-to-book ratio of 6.50 indicates a significant premium versus the S&P 500 average of 2.74 and a significant discount versus the industry average of 11.94. 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, GENOMIC HEALTH INC proves to trade at a discount to investment alternatives within the industry.
|GHDX NM||Peers 46.06||GHDX 413.84||Peers 59.57|
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.
GHDX's P/E is negative making this valuation measure meaningless.
Premium. 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.
GHDX is trading at a significant premium to its peers.
|GHDX 593.20||Peers 30.35||GHDX NA||Peers 0.62|
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.
GHDX'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.
|GHDX 6.50||Peers 11.94||GHDX -92.68||Peers 52.99|
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.
GHDX 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, GHDX is expected to significantly trail its peers on the basis of its earnings growth rate.
|GHDX 3.43||Peers 173.10||GHDX 5.39||Peers 120.69|
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.
GHDX 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.
GHDX significantly trails its peers on the basis of sales growth
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