IPHI : NYSE : Technology
$40.76 up 0.75 | 1.9%
Today's Range: 40.35 - 40.93
Avg. Daily Volume: 950100.0
12/05/16 - 9:57 AM ET

Financial Analysis


INPHI CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. INPHI CORP is extremely liquid. Currently, the Quick Ratio is 17.76 which clearly shows the ability to cover any short-term cash needs. IPHI 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.

At the same time, stockholders' equity ("net worth") has greatly increased by 75.30% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)70.7547.38
EBITDA ($mil)17.556.9
EBIT ($mil)10.360.46
Net Income ($mil)79.57-1.1


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)693.46101.71
Total Assets ($mil)875.07288.71
Total Debt ($mil)390.940.0
Equity ($mil)439.54250.72


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin77.8879.34
EBITDA Margin24.814.57
Operating Margin14.650.96
Sales Turnover0.290.67
Return on Assets8.86-9.76
Return on Equity1.07-12.41
Debt Q3 FY16 Q3 FY15
Current Ratio18.565.42
Debt/Capital0.470.0
Interest Expense3.990.0
Interest Coverage2.60.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)41.0739.04
Div / share0.00.0
EPS0.15-0.05
Book value / share10.76.42
Institutional Own % n/a n/a
Avg Daily Volume908382.0621149.0

Valuation


BUY. INPHI CORP's P/E ratio indicates a significant premium compared to an average of 30.84 for the Semiconductors & Semiconductor Equipment industry and a significant premium compared to the S&P 500 average of 25.16. Conducting a second comparison, its price-to-book ratio of 4.37 indicates a significant premium versus the S&P 500 average of 2.79 and a premium versus the industry average of 4.21. 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, INPHI CORP proves to trade 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
IPHI 468.20 Peers 30.84   IPHI 26.12 Peers 17.71

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

IPHI is trading at a significant premium to its peers.

 

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.

IPHI 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
IPHI 26.38 Peers 20.16   IPHI NM Peers 3.19

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

IPHI 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.

IPHI's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
IPHI 4.37 Peers 4.21   IPHI 112.04 Peers 21.82

Average. 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.

IPHI is trading at a valuation on par with its peers.

 

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

IPHI 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
IPHI 7.70 Peers 4.50   IPHI 28.34 Peers 10.81

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.

IPHI 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.

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

 

 

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