GEVO : NASDAQ : Basic Materials
$0.53 -0.01 | -2.69%
Today's Range: 0.52 - 0.55
Avg. Daily Volume: 10,905,700
07/28/16 - 3:59 PM ET

Financial Analysis


GEVO INC's gross profit margin for the first quarter of its fiscal year 2016 has significantly increased 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. GEVO INC has very weak liquidity. Currently, the Quick Ratio is 0.29 which clearly shows a lack of 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 remained virtually unchanged only increasing by 4.40% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)6.325.9
EBITDA ($mil)-4.25-7.87
EBIT ($mil)-5.87-9.54
Net Income ($mil)-3.61-7.34


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)8.674.35
Total Assets ($mil)95.5195.02
Total Debt ($mil)38.3435.87
Equity ($mil)47.4445.44


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin-22.94-31.94
EBITDA Margin-67.16-133.48
Operating Margin-92.82-161.65
Sales Turnover0.320.35
Return on Assets-33.98-38.43
Return on Equity-68.41-80.35
Debt Q1 FY16 Q1 FY15
Current Ratio0.420.84
Debt/Capital0.450.44
Interest Expense2.152.04
Interest Coverage-2.73-4.69


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)28.089.75
Div / share0.00.0
EPS-0.16-0.9
Book value / share1.694.66
Institutional Own % n/a n/a
Avg Daily Volume1.0121725E7769470.0

Valuation


SELL. 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 0.31 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 11.73. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, GEVO 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
GEVO NM Peers 70.76   GEVO NM Peers 306.30

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.

GEVO'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.

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

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
GEVO NM Peers 39.26   GEVO NA Peers 2.07

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

GEVO's ratio is negative making this valuation measure meaningless.

 

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
GEVO 0.31 Peers 11.73   GEVO 68.34 Peers -202.73

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.

GEVO 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.

GEVO 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
GEVO 0.48 Peers 2.43   GEVO -8.13 Peers -25.78

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.

GEVO 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.

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

 

 

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