RESPONSE GENETICS INC's gross profit margin for the third quarter of its fiscal year 2014 has significantly 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. RESPONSE GENETICS INC is extremely liquid. Currently, the Quick Ratio is 2.74 which clearly shows the ability to cover any 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 significantly decreased by 78.60% 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 FY14||Q3 FY13|
|Net Sales ($mil)||4.47||4.09|
|Net Income ($mil)||-3.64||-2.72|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||5.96||4.59|
|Total Assets ($mil)||16.27||15.0|
|Total Debt ($mil)||9.66||1.35|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||47.64||37.0|
|Return on Assets||-82.8||-35.51|
|Return on Equity||-670.04||-56.71|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||38.73||34.25|
|Div / share||0.0||0.0|
|Book value / share||0.05||0.27|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||161795.0||90721.0|
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 7.72 indicates a significant premium versus the S&P 500 average of 2.75 and a premium versus the industry average of 6.61. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, RESPONSE GENETICS INC proves to trade at a premium to investment alternatives within the industry.
|RGDX NM||Peers 42.85||RGDX NM||Peers 35.41|
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.
RGDX'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.
RGDX's P/CF is negative making the measure meaningless.
|RGDX NA||Peers 30.35||RGDX NA||Peers 1.04|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.
Ratio not available.
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.
|RGDX 7.72||Peers 6.61||RGDX -118.75||Peers 46.90|
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.
RGDX is trading at a premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, RGDX is expected to significantly trail its peers on the basis of its earnings growth rate.
|RGDX 0.89||Peers 95.43||RGDX -15.26||Peers 22.94|
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.
RGDX 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.
RGDX significantly trails its peers on the basis of sales growth
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