Cavium IncFind Ratings Reports
CAVIUM INC's gross profit margin for the first quarter of its fiscal year 2017 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. CAVIUM INC has strong liquidity. Currently, the Quick Ratio is 1.72 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 greatly increased by 95.03% 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||Q1 FY17||Q1 FY16|
|Net Sales ($mil)||229.58||101.88|
|Net Income ($mil)||-50.52||-3.83|
|Balance Sheet||Q1 FY17||Q1 FY16|
|Cash & Equiv. ($mil)||132.41||129.63|
|Total Assets ($mil)||1531.17||439.97|
|Total Debt ($mil)||643.46||24.22|
|Profitability||Q1 FY17||Q1 FY16|
|Gross Profit Margin||65.1||77.93|
|Return on Assets||-12.66||-1.59|
|Return on Equity||-26.96||-1.89|
|Debt||Q1 FY17||Q1 FY16|
|Share Data||Q1 FY17||Q1 FY16|
|Shares outstanding (mil)||67.88||57.34|
|Div / share||0.0||0.0|
|Book value / share||10.59||6.43|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1013843.0||778074.0|
HOLD. 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 6.24 indicates a significant premium versus the S&P 500 average of 3.04 and a premium versus the industry average of 5.57. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, CAVIUM INC seems to be trading at a premium to investment alternatives within the industry.
|CAVM NM||Peers 26.49||CAVM 52.48||Peers 20.91|
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.
CAVM's P/E is negative making this valuation measure meaningless.
Premium. 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.
CAVM is trading at a significant premium to its peers.
|CAVM 18.79||Peers 22.36||CAVM NA||Peers 1.29|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
CAVM is trading at a valuation on par with its peers.
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.
|CAVM 6.24||Peers 5.57||CAVM -2153.84||Peers 34.26|
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.
CAVM is trading at a premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, CAVM is expected to significantly trail its peers on the basis of its earnings growth rate.
|CAVM 6.14||Peers 5.22||CAVM 77.06||Peers 25.50|
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.
CAVM is trading at a premium to its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
CAVM has a sales growth rate that significantly exceeds its peers.