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Nektar Therapeutics Inc
NKTR : NASDAQ : Health Care
$12.37 -0.51 | -4.00%
Today's Range: 12.35 - 12.97
Avg. Daily Volume: 1,705,500
07/29/15 - 12:33 PM ET

Financial Analysis


NEKTAR THERAPEUTICS's gross profit margin for the first quarter of its fiscal year 2015 has significantly increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. NEKTAR THERAPEUTICS is extremely liquid. Currently, the Quick Ratio is 4.36 which clearly shows the ability to cover any short-term cash needs. NKTR 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 888.10% 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 Q1 FY15 Q1 FY14
Net Sales ($mil)108.819.77
EBITDA ($mil)46.02-33.14
EBIT ($mil)43.04-36.4
Net Income ($mil)33.82-46.2


Balance Sheet Q1 FY15 Q1 FY14
Cash & Equiv. ($mil)325.81284.07
Total Assets ($mil)499.21487.01
Total Debt ($mil)256.36253.18
Equity ($mil)77.31-9.81


Profitability Q1 FY15 Q1 FY14
Gross Profit Margin42.29-167.61
EBITDA Margin42.29-167.6
Operating Margin39.56-184.12
Sales Turnover0.580.3
Return on Assets5.22-31.44
Return on Equity33.760.0
Debt Q1 FY15 Q1 FY14
Current Ratio4.63.84
Debt/Capital0.771.04
Interest Expense9.229.92
Interest Coverage4.67-3.67


Share Data Q1 FY15 Q1 FY14
Shares outstanding (mil)131.45126.94
Div / share0.00.0
EPS0.25-0.37
Book value / share0.59-0.08
Institutional Own % n/a n/a
Avg Daily Volume1836393.01459406.0

Valuation


HOLD. NEKTAR THERAPEUTICS's P/E ratio indicates a significant premium compared to an average of 33.24 for the Pharmaceuticals industry and a significant premium compared to the S&P 500 average of 21.18. For additional comparison, its price-to-book ratio of 21.63 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 11.85. 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, NEKTAR THERAPEUTICS proves to trade 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
NKTR 74.82 Peers 33.24   NKTR NM Peers 24.85

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

NKTR is trading at a significant premium to its peers.

 

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.

NKTR'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
NKTR NM Peers 18.88   NKTR 2.42 Peers 1.00

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.

NKTR's ratio is negative making this valuation measure meaningless.

 

Premium. 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.

NKTR trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NKTR 21.63 Peers 11.85   NKTR 113.17 Peers 21.38

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

NKTR is trading at a significant premium to its peers.

 

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

NKTR 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
NKTR 5.77 Peers 9.52   NKTR 98.87 Peers 8.60

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.

NKTR is trading at a significant discount to its industry on this measurement.

 

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

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

 

 

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