Nektar Therapeutics Inc

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NKTR : NASDAQ : Health Care
$18.97 up 0.04 | 0.21%
Today's Range: 18.74 - 19.28
Avg. Daily Volume: 2131900.0
04/28/17 - 4:00 PM ET

Financial Analysis


NEKTAR THERAPEUTICS's gross profit margin for the fourth quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased. NEKTAR THERAPEUTICS is extremely liquid. Currently, the Quick Ratio is 5.60 which clearly shows the ability to cover any short-term cash needs. NKTR 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 1,270.74% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)37.4539.37
EBITDA ($mil)-28.3-22.62
EBIT ($mil)-32.14-26.36
Net Income ($mil)-42.2-54.14


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)389.1308.94
Total Assets ($mil)568.87502.06
Total Debt ($mil)354.55366.98
Equity ($mil)88.136.43


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin-75.55-57.45
EBITDA Margin-75.55-57.44
Operating Margin-85.83-66.96
Sales Turnover0.290.46
Return on Assets-26.98-16.16
Return on Equity-174.21-1262.66
Debt Q4 FY16 Q4 FY15
Current Ratio5.95.72
Debt/Capital0.80.98
Interest Expense10.3310.98
Interest Coverage-3.11-2.4


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)153.21135.29
Div / share0.00.0
EPS-0.28-0.4
Book value / share0.580.05
Institutional Own % n/a n/a
Avg Daily Volume2047676.01523431.0

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 33.26 indicates a significant premium versus the S&P 500 average of 2.99 and a significant premium versus the industry average of 13.69. 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, NEKTAR THERAPEUTICS 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
NKTR NM Peers 43.90   NKTR NM Peers 18.53

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.

NKTR'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.

NKTR'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
NKTR NM Peers 14.49   NKTR NA Peers 1.33

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.

NKTR'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
NKTR 33.26 Peers 13.69   NKTR -80.32 Peers -1.54

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.

NKTR 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, NKTR 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
NKTR 17.72 Peers 15.95   NKTR -28.32 Peers 4.95

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.

NKTR is trading at a premium to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

NKTR significantly trails its peers on the basis of sales growth

 

 

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