AEterna Zentaris Inc

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AEZS : NASDAQ : Health Care
$2.75 up 0.05 | 1.85%
Today's Range: 2.7 - 2.825
Avg. Daily Volume: 293800.0
03/23/17 - 4:00 PM ET

Financial Analysis

AETERNA ZENTARIS INC's gross profit margin for the third quarter of its fiscal year 2016 has significantly decreased 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. AETERNA ZENTARIS INC is extremely liquid. Currently, the Quick Ratio is 3.88 which clearly shows the ability to cover any short-term cash needs. AEZS 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 74.40% 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 FY16 Q3 FY15
Net Sales ($mil)0.270.17
EBITDA ($mil)-7.670.0
EBIT ($mil)-7.7-7.58
Net Income ($mil)-6.06-15.29

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)21.0538.35
Total Assets ($mil)31.7448.9
Total Debt ($mil)0.00.0
Equity ($mil)3.2812.82

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin-2852.04100.0
EBITDA Margin-2852.040.0
Operating Margin-2863.57-4379.19
Sales Turnover0.020.01
Return on Assets-84.3-73.56
Return on Equity-816.02-282.2
Debt Q3 FY16 Q3 FY15
Current Ratio3.982.13
Interest Expense0.00.0
Interest Coverage0.00.0

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)10.094.92
Div / share0.00.0
Book value / share0.332.6
Institutional Own % n/a n/a
Avg Daily Volume295552.0394600.0


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. To use another comparison, its price-to-book ratio of 9.07 indicates a significant premium versus the S&P 500 average of 2.98 and a significant discount versus the industry average of 13.45. 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, AETERNA ZENTARIS INC proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AEZS NM Peers 40.94   AEZS NM Peers 23.70

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.

AEZS'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.

AEZS's P/CF is negative making the measure meaningless.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
AEZS NA Peers 60.14   AEZS NA Peers 0.53

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AEZS 9.07 Peers 13.45   AEZS 88.75 Peers 169.46

Discount. 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.

AEZS is trading at a significant discount to its peers.


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

However, AEZS is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AEZS 41.94 Peers 295.21   AEZS 56.16 Peers 518.87

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.

AEZS 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.

AEZS significantly trails its peers on the basis of sales growth



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