TEARLAB CORP's gross profit margin for the third quarter of its fiscal year 2015 has decreased 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. TEARLAB CORP has strong liquidity. Currently, the Quick Ratio is 1.73 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 88.44% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||6.61||5.21|
|Net Income ($mil)||-8.06||-5.79|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||10.59||20.74|
|Total Assets ($mil)||26.23||36.6|
|Total Debt ($mil)||14.99||0.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||44.42||55.4|
|Return on Assets||-119.09||-57.2|
|Return on Equity||-893.42||-69.2|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||33.76||33.59|
|Div / share||0.0||0.0|
|Book value / share||0.1||0.9|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||100475.0||115913.0|
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. For additional comparison, its price-to-book ratio of 14.98 indicates a significant premium versus the S&P 500 average of 2.77 and a significant premium versus the industry average of 4.32. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, TEARLAB CORP proves to trade at a premium to investment alternatives within the industry.
|TEAR NM||Peers 42.30||TEAR NA||Peers 25.87|
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.
TEAR's P/E is negative making this valuation measure meaningless.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|TEAR NM||Peers 25.46||TEAR NA||Peers 0.85|
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.
TEAR'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.
|TEAR 14.98||Peers 4.32||TEAR -36.23||Peers -5.80|
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.
TEAR is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, TEAR is expected to significantly trail its peers on the basis of its earnings growth rate.
|TEAR 2.21||Peers 6.09||TEAR 25.45||Peers 16.01|
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.
TEAR 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.
TEAR has a sales growth rate that significantly exceeds its peers.
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