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MannKind Corporation
MNKD : NASDAQ : Health Care

$6.85 0.62 | 9.95%
Today's Range: 6.23 - 6.99
Avg. Daily Volume: 5,661,800
05/23/13 - 4:00 PM ET

Financial Analysis


MANNKIND CORP's gross profit margin for the fourth quarter of its fiscal year 2012 has significantly increased when compared to the same period a year ago. While net income decreased, sales have remained unchanged. MANNKIND CORP has very weak liquidity. Currently, the Quick Ratio is 0.43 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 64.71% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.



Income Statement Q4 FY12 Q4 FY11
Net Sales ($mil)0.00.0
EBITDA ($mil)-32.61-27.28
EBIT ($mil)-35.71-30.76
Net Income ($mil)-51.78-36.4


Balance Sheet Q4 FY12 Q4 FY11
Cash & Equiv. ($mil)61.843.2
Total Assets ($mil)251.31199.55
Total Debt ($mil)331.66487.85
Equity ($mil)-110.68-313.65


Profitability Q4 FY12 Q4 FY11
Gross Profit Margin0.00.0
EBITDA Margin0.00.0
Operating Margin0.00.0
Sales Turnover0.00.0
Return on Assets-67.39-80.58
Return on Equity0.00.0
Debt Q4 FY12 Q4 FY11
Current Ratio0.460.23
Debt/Capital1.52.8
Interest Expense5.035.88
Interest Coverage-7.1-5.23


Share Data Q4 FY12 Q4 FY11
Shares outstanding (mil)286.04131.52
Div / share0.00.0
EPS-0.23-0.3
Book value / share-0.39-2.38
Institutional Own % n/a n/a
Avg Daily Volume4716646.02581918.0

Valuation


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. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MNKD NM Peers 31.48   MNKD NM Peers 69.89

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.

MNKD'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.

MNKD'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
MNKD NM Peers 35.99   MNKD NA Peers 0.69

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.

MNKD'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
MNKD NM Peers 9.36   MNKD 28.04 Peers -5.47

Neutral. 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.

MNKD's P/B is negative making this valuation measure meaningless.

 

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

MNKD 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
MNKD 40200.00 Peers 470.35   MNKD -30.00 Peers 75.75

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.

MNKD 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.

MNKD significantly trails its peers on the basis of sales growth

 

 

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