0.03 | 0.04%
LIFE TECHNOLOGIES CORP's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. LIFE TECHNOLOGIES CORP has weak liquidity. Currently, the Quick Ratio is 0.92 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
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 in a position in which financial difficulties could develop in the future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 962.51 | 939.11 |
| EBITDA ($mil) | 316.14 | 315.23 |
| EBIT ($mil) | 209.36 | 210.23 |
| Net Income ($mil) | 121.2 | 132.64 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 292.61 | 263.58 |
| Total Assets ($mil) | 8539.05 | 8579.16 |
| Total Debt ($mil) | 2397.03 | 2424.83 |
| Equity ($mil) | 4685.62 | 4703.6 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 69.7 | 70.08 |
| EBITDA Margin | 32.84 | 33.56 |
| Operating Margin | 21.75 | 22.39 |
| Sales Turnover | 0.45 | 0.45 |
| Return on Assets | 4.91 | 4.86 |
| Return on Equity | 8.95 | 8.87 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 1.56 | 1.42 |
| Debt/Capital | 0.34 | 0.34 |
| Interest Expense | 29.37 | 32.04 |
| Interest Coverage | 7.13 | 6.56 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 171.38 | 178.18 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.69 | 0.72 |
| Book value / share | 27.34 | 26.4 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 3824549.0 | 2240223.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 31.21 for the Life Sciences Tools & Services industry and a significant premium compared to the S&P 500 average of 18.91. To use another comparison, its price-to-book ratio of 2.71 indicates valuation on par with the S&P 500 average of 2.42 and a discount versus the industry average of 3.57. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| LIFE 31.44 | Peers 31.21 | LIFE 15.63 | Peers 17.03 | |||||||||||||||||||||
|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation. LIFE is trading at a valuation on par with its peers. |
Average. 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. LIFE is trading at a valuation on par to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| LIFE 15.99 | Peers 21.12 | LIFE 0.42 | Peers 4.96 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. LIFE is trading at a discount to its peers. |
Discount. 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. LIFE trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| LIFE 2.71 | Peers 3.57 | LIFE 3.96 | Peers 57.75 | |||||||||||||||||||||
|
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. LIFE is trading at a discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, LIFE is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| LIFE 3.33 | Peers 25.28 | LIFE 0.07 | Peers 8.37 | |||||||||||||||||||||
|
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. LIFE 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. LIFE significantly trails its peers on the basis of sales growth |
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