GenMark Diagnostics Inc

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GNMK : NASDAQ : Health Care
$12.05 | %
Today's Range: 12.0 - 12.46
Avg. Daily Volume: 342100.0
07/21/17 - 4:00 PM ET

Financial Analysis


GENMARK DIAGNOSTICS INC's gross profit margin for the first quarter of its fiscal year 2017 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 1.50 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.

At the same time, stockholders' equity ("net worth") has significantly decreased by 30.12% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)12.5411.06
EBITDA ($mil)-12.34-11.81
EBIT ($mil)-13.56-12.71
Net Income ($mil)-13.92-12.96


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)24.1937.99
Total Assets ($mil)64.0861.41
Total Debt ($mil)19.959.56
Equity ($mil)27.0538.72


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin59.0368.59
EBITDA Margin-98.43-106.72
Operating Margin-108.15-114.86
Sales Turnover0.790.66
Return on Assets-80.46-73.74
Return on Equity-190.58-116.95
Debt Q1 FY17 Q1 FY16
Current Ratio2.04.03
Debt/Capital0.420.2
Interest Expense0.510.28
Interest Coverage-26.74-45.88


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)47.0842.79
Div / share0.00.0
EPS-0.3-0.3
Book value / share0.570.9
Institutional Own % n/a n/a
Avg Daily Volume341398.0263523.0

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 21.34 indicates a significant premium versus the S&P 500 average of 3.07 and a significant premium versus the industry average of 5.47. 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 47.54   GNMK NM Peers 29.38

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 25.74   GNMK NA Peers 0.99

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 21.34 Peers 5.47   GNMK -6.54 Peers 113.75

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 11.37 Peers 5.22   GNMK 25.70 Peers 14.04

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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