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GenMark Diagnostics Inc
GNMK : NASDAQ : Health Care
$4.78 | %
Today's Range: 4.75 - 5.08
Avg. Daily Volume: 214,900
02/12/16 - 4:00 PM ET

Financial Analysis


GENMARK DIAGNOSTICS INC's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. GENMARK DIAGNOSTICS INC is extremely liquid. Currently, the Quick Ratio is 5.10 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 35.85% 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 Q3 FY15 Q3 FY14
Net Sales ($mil)8.476.3
EBITDA ($mil)-10.25-9.57
EBIT ($mil)-11.12-10.27
Net Income ($mil)-11.39-9.66


Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)54.1879.25
Total Assets ($mil)77.0797.72
Total Debt ($mil)9.790.0
Equity ($mil)54.2484.56


Profitability Q3 FY15 Q3 FY14
Gross Profit Margin70.6869.75
EBITDA Margin-120.97-151.92
Operating Margin-131.22-163.08
Sales Turnover0.470.28
Return on Assets-54.53-41.22
Return on Equity-77.47-47.63
Debt Q3 FY15 Q3 FY14
Current Ratio5.417.33
Debt/Capital0.150.0
Interest Expense0.290.01
Interest Coverage-38.33-733.86


Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)42.4541.73
Div / share0.00.0
EPS-0.27-0.23
Book value / share1.282.03
Institutional Own % n/a n/a
Avg Daily Volume216005.0355821.0

Valuation


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 4.30 indicates a significant premium versus the S&P 500 average of 2.51 and a premium versus the industry average of 4.14. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
GNMK NM Peers 55.38   GNMK NM Peers 26.18

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
GNMK NM Peers 21.07   GNMK NA Peers 1.67

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GNMK 4.30 Peers 4.14   GNMK -4.12 Peers -9.76

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

GNMK is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GNMK 6.48 Peers 5.78   GNMK 32.44 Peers 18.99

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 premium to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

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

 

 

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