AEterna Zentaris Inc

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AEZS : NASDAQ : Health Care
$3.40 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 109,900
09/27/16 - 4:00 PM ET

Financial Analysis


AETERNA ZENTARIS INC's gross profit margin for the second quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased. AETERNA ZENTARIS INC is extremely liquid. Currently, the Quick Ratio is 4.91 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.78% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)0.10.2
EBITDA ($mil)-7.140.0
EBIT ($mil)-7.18-8.03
Net Income ($mil)-7.01-15.1


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)26.1745.46
Total Assets ($mil)37.0757.25
Total Debt ($mil)0.00.0
Equity ($mil)9.059.41


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin-7432.29100.0
EBITDA Margin-7432.290.0
Operating Margin-7483.33-4078.17
Sales Turnover0.020.0
Return on Assets-97.09-55.93
Return on Equity-399.16-344.61
Debt Q2 FY16 Q2 FY15
Current Ratio5.048.5
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)9.941.4
Div / share0.00.0
EPS-0.71-14.0
Book value / share0.916.73
Institutional Own % n/a n/a
Avg Daily Volume169689.0190548.0

Valuation


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 3.83 indicates a premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 10.96. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AEZS NM Peers 44.84   AEZS 0.43 Peers 22.14

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.

 

Discount. 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 is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AEZS NA Peers 34.20   AEZS NA Peers 0.50

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AEZS 3.83 Peers 10.96   AEZS 76.74 Peers 1.89

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.

 

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

AEZS is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AEZS 56.87 Peers 681.73   AEZS 118.14 Peers 52.29

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

AEZS has a sales growth rate that significantly exceeds its peers.

 

 

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