EMCORE Corp

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EMKR : NASDAQ : Technology
$6.44 -0.03 | -0.46%
Today's Range: 6.36 - 6.50
Avg. Daily Volume: 271,200
07/29/16 - 12:49 PM ET

Financial Analysis


EMCORE CORP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. EMCORE CORP is extremely liquid. Currently, the Quick Ratio is 7.21 which clearly shows the ability to cover any short-term cash needs. EMKR 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.

During the same period, stockholders' equity ("net worth") has decreased by 19.07% 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 ($mil)21.5319.06
EBITDA ($mil)0.31-0.17
EBIT ($mil)-0.27-0.74
Net Income ($mil)3.983.05


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)110.56141.13
Total Assets ($mil)161.57203.83
Total Debt ($mil)0.00.0
Equity ($mil)142.02175.49


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin35.2836.46
EBITDA Margin1.43-0.88
Operating Margin-1.24-3.87
Sales Turnover0.550.32
Return on Assets5.535.08
Return on Equity1.064.86
Debt Q2 FY16 Q2 FY15
Current Ratio8.396.87
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)26.132.26
Div / share0.00.0
EPS-0.01-0.03
Book value / share5.445.44
Institutional Own % n/a n/a
Avg Daily Volume270022.0305623.0

Valuation


HOLD. EMCORE CORP's P/E ratio indicates a significant premium compared to an average of 27.55 for the Communications Equipment industry and a significant premium compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 1.20 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 3.09. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
EMKR 108.50 Peers 27.55   EMKR 183.23 Peers 12.38

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

EMKR is trading at a significant premium to its peers.

 

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.

EMKR is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
EMKR 21.70 Peers 18.33   EMKR NM Peers 0.62

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

EMKR 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.

EMKR's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EMKR 1.20 Peers 3.09   EMKR -78.58 Peers 51.41

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.

EMKR 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, EMKR 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
EMKR 1.93 Peers 3.14   EMKR 34.97 Peers 10.39

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.

EMKR 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.

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

 

 

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