GEVO : NASDAQ : Basic Materials
$1.09 | %
Today's Range: 1.04 - 1.15
Avg. Daily Volume: 956900.0
02/24/17 - 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, underperforming the average competitor within its industry. 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
Debt/Capital0.340.42
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
EPS-2.0-7.8
Book value / share10.1762.45
Institutional Own % n/a n/a
Avg Daily Volume3237428.07039755.0

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 0.14 indicates a significant discount versus the S&P 500 average of 2.94 and a significant discount versus the industry average of 32.24. 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 146.60   GEVO NM Peers 12.63

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 35.50   GEVO NA Peers 2.02

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 0.14 Peers 32.24   GEVO 72.80 Peers -20.00

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 0.32 Peers 2.73   GEVO -11.34 Peers -12.86

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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