CAVM : NASDAQ : Technology
$71.2 | %
Today's Range: 70.8 - 72.59
Avg. Daily Volume: 780400.0
03/24/17 - 4:00 PM ET

Financial Analysis


CAVIUM INC's gross profit margin for the fourth quarter of its fiscal year 2016 has significantly 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 is extremely liquid. Currently, the Quick Ratio is 2.06 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 109.61% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)226.15100.94
EBITDA ($mil)0.011.08
EBIT ($mil)-3.850.66
Net Income ($mil)-121.6-1.03


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)221.44134.65
Total Assets ($mil)1650.53433.99
Total Debt ($mil)732.6930.47
Equity ($mil)741.84353.9


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin52.7376.55
EBITDA Margin0.010.97
Operating Margin-1.70.65
Sales Turnover0.370.95
Return on Assets-8.91-3.93
Return on Equity-19.84-4.82
Debt Q4 FY16 Q4 FY15
Current Ratio2.914.08
Debt/Capital0.50.08
Interest Expense8.070.23
Interest Coverage-0.482.9


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)66.5556.26
Div / share0.00.0
EPS-1.82-0.02
Book value / share11.156.29
Institutional Own % n/a n/a
Avg Daily Volume796175.01030696.0

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 6.47 indicates a significant premium versus the S&P 500 average of 2.98 and a significant premium versus the industry average of 4.80. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CAVM NM Peers 30.20   CAVM NA Peers 17.43

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.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CAVM 20.62 Peers 20.47   CAVM NA Peers 1.53

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

CAVM is trading at a significant premium to 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CAVM 6.47 Peers 4.80   CAVM -625.80 Peers -4.55

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 significant 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CAVM 7.96 Peers 4.71   CAVM 46.17 Peers 21.81

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 significant premium to its industry.

 

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.

 

 

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