THERAVANCE INC's gross profit margin for the first quarter of its fiscal year 2015 has significantly decreased when compared to the same period a year ago. Even though it increased sales and net income significantly, the company was unable to grow at a faster pace than its industry competitors. THERAVANCE INC is extremely liquid. Currently, the Quick Ratio is 23.81 which clearly shows the ability to cover any short-term cash needs. THRX 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 significantly decreased by 198.81% 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 ($mil)||6.9||-0.78|
|Net Income ($mil)||-10.67||-67.7|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||251.14||370.92|
|Total Assets ($mil)||488.7||605.03|
|Total Debt ($mil)||732.06||287.5|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||11.19||1887.56|
|Return on Assets||-22.8||-33.22|
|Return on Equity||0.0||-13.7|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||116.77||112.52|
|Div / share||0.25||0.0|
|Book value / share||-2.23||2.34|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||613829.0||993951.0|
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. 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.
|THRX NM||Peers 31.28||THRX NM||Peers 22.21|
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.
THRX'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.
THRX's P/CF is negative making the measure meaningless.
|THRX 40.17||Peers 18.41||THRX NA||Peers 0.96|
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.
THRX'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.
|THRX NM||Peers 10.52||THRX -76.47||Peers 24.23|
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.
THRX's P/B is negative making this valuation measure meaningless.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, THRX is expected to significantly trail its peers on the basis of its earnings growth rate.
|THRX 139.75||Peers 9.57||THRX 562.92||Peers 9.19|
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.
THRX is trading at a significant premium to its industry.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
THRX has a sales growth rate that significantly exceeds its peers.
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