MEI Pharma Inc

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MEIP : NASDAQ : Health Care
$2.12 | %
Today's Range: 1.95 - 2.18
Avg. Daily Volume: 160900.0
05/26/17 - 4:00 PM ET

Financial Analysis


MEI PHARMA INC's gross profit margin for the second quarter of its fiscal year 2017 has significantly increased when compared to the same period a year ago. Even though it increased sales and net income significantly, the company was unable to grow at a faster pace than its industry competitors. MEI PHARMA INC is extremely liquid. Currently, the Quick Ratio is 16.61 which clearly shows the ability to cover any short-term cash needs. MEIP 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.

During the same period, stockholders' equity ("net worth") has increased by 6.29% 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 FY17 Q2 FY16
Net Sales ($mil)17.20.0
EBITDA ($mil)11.83-5.11
EBIT ($mil)11.82-5.13
Net Income ($mil)11.89-5.1


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)55.1553.79
Total Assets ($mil)58.2155.02
Total Debt ($mil)0.00.0
Equity ($mil)54.8951.64


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin89.790.0
EBITDA Margin68.780.0
Operating Margin68.70.0
Sales Turnover0.310.0
Return on Assets-6.05-44.19
Return on Equity-6.42-47.08
Debt Q2 FY17 Q2 FY16
Current Ratio17.4216.16
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)36.7734.16
Div / share0.00.0
EPS0.32-0.15
Book value / share1.491.51
Institutional Own % n/a n/a
Avg Daily Volume162408.0300588.0

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 1.32 indicates a significant discount versus the S&P 500 average of 3.06 and a significant discount versus the industry average of 10.06. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, MEI PHARMA INC proves to trade at a discount 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
MEIP NM Peers 38.69   MEIP NM Peers 44.11

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.

MEIP'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.

MEIP'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
MEIP NM Peers 22.54   MEIP NA Peers 0.48

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

MEIP 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MEIP 1.32 Peers 10.06   MEIP 81.95 Peers -14.63

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.

MEIP is trading at a significant discount to its peers.

 

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

MEIP 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
MEIP 3.96 Peers 111.01   MEIP NA Peers 455.32

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.

MEIP is trading at a significant discount to its industry on this measurement.

 

Neutral. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

The growth rate for MEIP is not available.

 

 

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