GenMark Diagnostics Inc

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GNMK : NASDAQ : Health Care
$9.80 | %
Today's Range: 9.56 - 9.89
Avg. Daily Volume: 212,100
07/22/16 - 4:00 PM ET

Financial Analysis


GENMARK DIAGNOSTICS INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged 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 is extremely liquid. Currently, the Quick Ratio is 3.77 which clearly shows the ability to cover any 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 significantly decreased by 45.91% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)11.0610.11
EBITDA ($mil)-11.81-9.23
EBIT ($mil)-12.71-10.03
Net Income ($mil)-12.96-9.87


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)37.9970.95
Total Assets ($mil)61.4192.35
Total Debt ($mil)9.569.5
Equity ($mil)38.7271.59


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin68.5968.4
EBITDA Margin-106.72-91.32
Operating Margin-114.86-99.21
Sales Turnover0.660.36
Return on Assets-73.74-42.6
Return on Equity-116.95-54.96
Debt Q1 FY16 Q1 FY15
Current Ratio4.038.15
Debt/Capital0.20.12
Interest Expense0.280.07
Interest Coverage-45.88-137.36


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)42.7942.13
Div / share0.00.0
EPS-0.3-0.24
Book value / share0.91.7
Institutional Own % n/a n/a
Avg Daily Volume224668.0203527.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 10.48 indicates a significant premium versus the S&P 500 average of 2.80 and a significant premium versus the industry average of 4.66. 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 63.09   GNMK NM Peers 32.41

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 28.28   GNMK NA Peers 1.04

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 10.48 Peers 4.66   GNMK -12.63 Peers 169.45

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 10.05 Peers 4.72   GNMK 23.11 Peers 19.96

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 exceeds its peers.

 

 

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