GEVO : NASDAQ : Basic Materials
$3.72 -0.14 | -3.63%
Today's Range: 3.72 - 3.9697
Avg. Daily Volume: 389300.0
01/13/17 - 4:00 PM ET

Financial Analysis

GEVO INC's gross profit margin for the third quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. GEVO INC has weak liquidity. Currently, the Quick Ratio is 0.80 which 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 greatly increased by 26.59% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)6.948.02
EBITDA ($mil)-4.38-7.66
EBIT ($mil)-6.13-9.27
Net Income ($mil)-9.85-6.52

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)31.0616.2
Total Assets ($mil)116.11100.95
Total Debt ($mil)34.1237.68
Equity ($mil)66.9952.92

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin-17.37-14.87
EBITDA Margin-63.04-95.52
Operating Margin-88.34-115.68
Sales Turnover0.250.32
Return on Assets-36.94-38.93
Return on Equity-64.03-74.28
Debt Q3 FY16 Q3 FY15
Current Ratio0.91.96
Interest Expense2.12.12
Interest Coverage-2.92-4.37

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)6.590.85
Div / share0.00.0
Book value / share10.1762.45
Institutional Own % n/a n/a
Avg Daily Volume4513056.07998669.0


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. For additional comparison, its price-to-book ratio of 0.38 indicates a significant discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 23.93. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
GEVO NM Peers 42.39   GEVO NM Peers 13.47

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
GEVO NA Peers 63.03   GEVO NA Peers 2.40

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GEVO 0.38 Peers 23.93   GEVO 72.80 Peers -244.01

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GEVO 0.89 Peers 2.74   GEVO -11.34 Peers -20.21

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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