TEARLAB CORP's gross profit margin for the third quarter of its fiscal year 2015 has 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. 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.
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||58.44||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||88899.0||95602.0|
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 8.41 indicates a significant premium versus the S&P 500 average of 2.51 and a significant premium versus the industry average of 4.14. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. 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 55.38||TEAR NM||Peers 26.18|
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, 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.
TEAR's P/CF is negative making the measure meaningless.
|TEAR NM||Peers 21.07||TEAR NA||Peers 1.67|
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 8.41||Peers 4.14||TEAR -36.23||Peers -9.76|
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 1.24||Peers 5.78||TEAR 25.45||Peers 18.99|
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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