GENMARK DIAGNOSTICS INC's gross profit margin for the second quarter of its fiscal year 2014 has increased 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. GENMARK DIAGNOSTICS INC is extremely liquid. Currently, the Quick Ratio is 7.83 which clearly shows the ability to cover any short-term cash needs. GNMK 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 97.85% 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||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||6.56||5.22|
|Net Income ($mil)||-11.21||-8.02|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||89.4||36.51|
|Total Assets ($mil)||106.64||56.87|
|Total Debt ($mil)||0.0||0.31|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||60.4||55.61|
|Return on Assets||-38.86||-40.68|
|Return on Equity||-44.72||-49.4|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||41.75||32.72|
|Div / share||0.0||0.0|
|Book value / share||2.22||1.43|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||172925.0||214828.0|
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. Conducting a second comparison, its price-to-book ratio of 4.50 indicates a significant premium versus the S&P 500 average of 2.76 and a premium versus the industry average of 4.21. 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, GENMARK DIAGNOSTICS INC seems to be trading at a premium to investment alternatives within the industry.
|GNMK NM||Peers 29.88||GNMK NM||Peers 22.00|
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.
GNMK'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.
GNMK's P/CF is negative making the measure meaningless.
|GNMK NM||Peers 20.22||GNMK NA||Peers 0.90|
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.
GNMK'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.
|GNMK 4.50||Peers 4.21||GNMK -42.46||Peers 58.95|
Average. 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.
GNMK is trading at a valuation on par with its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, GNMK is expected to significantly trail its peers on the basis of its earnings growth rate.
|GNMK 16.32||Peers 4.12||GNMK -17.60||Peers 5.60|
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.
GNMK is trading at a significant premium to its industry.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
GNMK significantly trails its peers on the basis of sales growth
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