iRhythm Technologies, Inc.Find Ratings Reports
IRHYTHM TECHNOLOGIES INC's gross profit margin for the second quarter of its fiscal year 2021 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 subsector when comparing revenue growth, but not when comparing net income growth. IRHYTHM TECHNOLOGIES INC is extremely liquid. Currently, the Quick Ratio is 4.37 which clearly shows the ability to cover any short-term cash needs. IRTC 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 159.81% 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 FY21||Q2 FY20|
|Net Sales ($mil)||81.28||50.88|
|Net Income ($mil)||-17.36||-20.44|
|Balance Sheet||Q2 FY21||Q2 FY20|
|Cash & Equiv. ($mil)||255.66||114.93|
|Total Assets ($mil)||485.22||276.22|
|Total Debt ($mil)||122.47||126.9|
|Profitability||Q2 FY21||Q2 FY20|
|Gross Profit Margin||70.67||72.85|
|Return on Assets||-12.25||-23.56|
|Return on Equity||-19.41||-55.19|
|Debt||Q2 FY21||Q2 FY20|
|Share Data||Q2 FY21||Q2 FY20|
|Shares outstanding (mil)||29.39||27.36|
|Div / share||0.0||0.0|
|Book value / share||10.43||4.31|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||416291.0||641843.0|
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. To use another comparison, its price-to-book ratio of 6.95 indicates a significant premium versus the S&P 500 average of 4.47 and a significant discount versus the subsector average of 10.01. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. After reviewing these and other key valuation criteria, IRHYTHM TECHNOLOGIES INC proves to trade at a discount to investment alternatives.
|IRTC NM||Peers 81.41||IRTC NM||Peers 42.85|
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.
IRTC'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.
IRTC's P/CF is negative making the measure meaningless.
|IRTC NM||Peers 69.04||IRTC NA||Peers 0.62|
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.
IRTC'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.
|IRTC 6.95||Peers 10.01||IRTC 17.08||Peers 168.04|
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.
IRTC is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, IRTC is expected to significantly trail its peers on the basis of its earnings growth rate.
|IRTC 6.95||Peers 15.03||IRTC 34.24||Peers 25.66|
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.
IRTC is trading at a significant discount to its subsector on this measurement.
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share.
IRTC has a sales growth rate that significantly exceeds its peers.