Genomic Health Inc

Find Ratings Reports
GHDX : NASDAQ : Health Care
$30.98 | %
Today's Range: 30.74 - 31.055
Avg. Daily Volume: 96300.0
09/22/17 - 4:00 PM ET

Financial Analysis


GENOMIC HEALTH INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. GENOMIC HEALTH INC is extremely liquid. Currently, the Quick Ratio is 3.64 which clearly shows the ability to cover any short-term cash needs. GHDX 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 increased by 22.65% 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 FY17 Q2 FY16
Net Sales ($mil)85.4981.97
EBITDA ($mil)-0.12-2.91
EBIT ($mil)-3.14-5.1
Net Income ($mil)-2.74-6.1


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)109.893.55
Total Assets ($mil)212.93180.09
Total Debt ($mil)0.00.0
Equity ($mil)169.95138.56


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin87.483.64
EBITDA Margin-0.13-3.55
Operating Margin-3.68-6.22
Sales Turnover1.571.73
Return on Assets-2.35-15.0
Return on Equity-2.94-19.5
Debt Q2 FY17 Q2 FY16
Current Ratio3.953.54
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)34.6533.35
Div / share0.00.0
EPS-0.08-0.18
Book value / share4.914.16
Institutional Own % n/a n/a
Avg Daily Volume98929.0115235.0

Valuation


HOLD. 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. To use another comparison, its price-to-book ratio of 6.32 indicates a significant premium versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 12.14. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, GENOMIC HEALTH 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
GHDX NM Peers 39.88   GHDX 45.22 Peers 27.93

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.

GHDX's P/E is negative making this valuation measure meaningless.

 

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.

GHDX 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
GHDX 95.38 Peers 25.67   GHDX NA Peers 0.50

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

GHDX 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GHDX 6.32 Peers 12.14   GHDX 82.72 Peers 10.47

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.

GHDX 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.

GHDX 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
GHDX 3.21 Peers 94.57   GHDX 7.35 Peers 233.22

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.

GHDX 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.

GHDX significantly trails its peers on the basis of sales growth

 

 

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