GEVO : NASDAQ : Basic Materials
$0.57 up 0.007 | 1.24%
Today's Range: 0.56 - 0.572
Avg. Daily Volume: 540800.0
08/23/17 - 4:00 PM ET

Financial Analysis


GEVO INC's gross profit margin for the first quarter of its fiscal year 2017 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. GEVO INC has weak liquidity. Currently, the Quick Ratio is 0.82 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 62.08% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)5.626.32
EBITDA ($mil)-5.51-4.25
EBIT ($mil)-7.18-5.87
Net Income ($mil)-5.93-3.61


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)20.398.67
Total Assets ($mil)104.5995.51
Total Debt ($mil)17.7338.34
Equity ($mil)76.947.44


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin-40.12-22.94
EBITDA Margin-98.04-67.16
Operating Margin-127.88-92.82
Sales Turnover0.250.32
Return on Assets-37.82-33.98
Return on Equity-51.43-68.41
Debt Q1 FY17 Q1 FY16
Current Ratio1.010.42
Debt/Capital0.190.45
Interest Expense0.712.15
Interest Coverage-10.06-2.73


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)15.071.4
Div / share0.00.0
EPS-0.51-3.2
Book value / share5.133.79
Institutional Own % n/a n/a
Avg Daily Volume549933.0882867.0

Valuation


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 0.11 indicates a significant discount versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 524.92. 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 61.94   GEVO 1.17 Peers 10.76

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.

 

Discount. 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 is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
GEVO NM Peers 36.45   GEVO NA Peers 0.57

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 0.11 Peers 524.92   GEVO 71.99 Peers 163.55

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.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, GEVO 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
GEVO 0.32 Peers 1.98   GEVO -13.26 Peers 20.11

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

GEVO significantly trails its peers on the basis of sales growth

 

 

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