GenMark Diagnostics Inc

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GNMK : NASDAQ : Health Care
$13.03 up 0.23 | 1.8%
Today's Range: 12.76 - 13.065
Avg. Daily Volume: 254400.0
05/25/17 - 3:49 PM ET

Financial Analysis


GENMARK DIAGNOSTICS INC's gross profit margin for the fourth quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. GENMARK DIAGNOSTICS INC has strong liquidity. Currently, the Quick Ratio is 1.92 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 21.49% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)14.8913.19
EBITDA ($mil)-10.88-7.56
EBIT ($mil)-12.06-8.46
Net Income ($mil)-12.68-8.78


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)41.5745.47
Total Assets ($mil)80.3270.67
Total Debt ($mil)19.829.89
Equity ($mil)38.1548.6


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin65.9771.32
EBITDA Margin-73.1-57.3
Operating Margin-81.01-64.17
Sales Turnover0.610.56
Return on Assets-62.99-59.71
Return on Equity-132.63-86.83
Debt Q4 FY16 Q4 FY15
Current Ratio2.215.28
Debt/Capital0.340.17
Interest Expense0.480.27
Interest Coverage-25.39-30.99


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)46.5542.55
Div / share0.00.0
EPS-0.27-0.21
Book value / share0.821.14
Institutional Own % n/a n/a
Avg Daily Volume262198.0258865.0

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 15.85 indicates a significant premium versus the S&P 500 average of 3.00 and a significant premium versus the industry average of 4.72. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, GENMARK DIAGNOSTICS INC seems to be trading at a premium 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
GNMK NM Peers 41.69   GNMK NM Peers 23.09

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.

GNMK'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.

GNMK'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
GNMK NM Peers 23.68   GNMK NA Peers 0.90

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.

GNMK'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
GNMK 15.85 Peers 4.72   GNMK -12.87 Peers 126.02

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

GNMK is trading at a significant premium to its peers.

 

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

However, GNMK 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
GNMK 12.27 Peers 4.96   GNMK 25.02 Peers 14.58

Premium. 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.

GNMK is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

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

 

 

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