Sorrento Therapeutics, Inc.Find Ratings Reports
SORRENTO THERAPEUTICS INC's gross profit margin for the fourth quarter of its fiscal year 2020 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the subsector, the net income growth did not. SORRENTO THERAPEUTICS INC has weak liquidity. Currently, the Quick Ratio is 0.75 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 110.14% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q4 FY20||Q4 FY19|
|Net Sales ($mil)||11.51||13.03|
|Net Income ($mil)||-71.5||-62.82|
|Balance Sheet||Q4 FY20||Q4 FY19|
|Cash & Equiv. ($mil)||56.46||35.62|
|Total Assets ($mil)||535.82||557.63|
|Total Debt ($mil)||169.39||290.78|
|Profitability||Q4 FY20||Q4 FY19|
|Gross Profit Margin||-565.66||-314.01|
|Return on Assets||-55.7||-52.37|
|Return on Equity||-180.72||-371.64|
|Debt||Q4 FY20||Q4 FY19|
|Share Data||Q4 FY20||Q4 FY19|
|Shares outstanding (mil)||275.29||167.8|
|Div / share||0.0||0.0|
|Book value / share||0.6||0.47|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.2149296E7||1.7861648E7|
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 14.14 indicates a significant premium versus the S&P 500 average of 4.43 and a significant premium versus the subsector average of 11.58. 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, SORRENTO THERAPEUTICS INC proves to trade at a premium to investment alternatives.
|SRNE NM||Peers 116.71||SRNE NM||Peers 26.88|
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.
SRNE'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.
SRNE's P/CF is negative making the measure meaningless.
|SRNE 5.49||Peers 20.79||SRNE NA||Peers 0.67|
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.
SRNE'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.
|SRNE 14.14||Peers 11.58||SRNE 41.60||Peers -11.73|
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.
SRNE is trading at a premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
SRNE is expected to have an earnings growth rate that significantly exceeds its peers.
|SRNE 58.38||Peers 1315.65||SRNE 27.21||Peers 1019.41|
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.
SRNE is trading at a significant discount to its subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
SRNE significantly trails its peers on the basis of sales growth.