Nektar Therapeutics Inc

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NKTR : NASDAQ : Health Care
$18.75 | %
Today's Range: 18.58 - 19.50
Avg. Daily Volume: 1,052,200
09/23/16 - 4:00 PM ET

Financial Analysis


NEKTAR THERAPEUTICS's gross profit margin for the second quarter of its fiscal year 2016 has significantly increased 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. NEKTAR THERAPEUTICS is extremely liquid. Currently, the Quick Ratio is 3.82 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 significantly decreased by 211.82% 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 FY16 Q2 FY15
Net Sales ($mil)32.7722.66
EBITDA ($mil)-34.41-40.61
EBIT ($mil)-38.33-43.47
Net Income ($mil)-48.6-52.66


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)274.85279.66
Total Assets ($mil)463.1456.67
Total Debt ($mil)360.53255.5
Equity ($mil)-39.2535.1


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin-105.0-179.2
EBITDA Margin-105.0-179.2
Operating Margin-116.96-191.82
Sales Turnover0.410.62
Return on Assets-28.161.33
Return on Equity0.017.33
Debt Q2 FY16 Q2 FY15
Current Ratio4.023.73
Debt/Capital1.120.88
Interest Expense10.619.27
Interest Coverage-3.61-4.69


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)136.6132.19
Div / share0.00.0
EPS-0.36-0.4
Book value / share-0.290.27
Institutional Own % n/a n/a
Avg Daily Volume1036785.01001936.0

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. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NKTR NM Peers 29.09   NKTR NM Peers 20.79

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 14.90   NKTR NA Peers 0.54

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 NM Peers 19.68   NKTR -3300.00 Peers -21.06

Neutral. 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.

NKTR's P/B is negative making this valuation measure meaningless.

 

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 13.77 Peers 13.29   NKTR -32.73 Peers 5.63

Average. 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 valuation on par with 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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