TearLab Corp

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TEAR : NASDAQ : Health Care
$0.5299 | %
Today's Range: 0.51 - 0.55
Avg. Daily Volume: 60600.0
12/02/16 - 4:00 PM ET

Financial Analysis


TEARLAB CORP's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. TEARLAB CORP is extremely liquid. Currently, the Quick Ratio is 3.83 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 149.29% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)7.226.61
EBITDA ($mil)0.0-6.62
EBIT ($mil)-2.94-7.54
Net Income ($mil)-3.98-8.06


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)17.5510.59
Total Assets ($mil)29.4726.23
Total Debt ($mil)25.9914.99
Equity ($mil)-1.723.5


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin52.2458.44
EBITDA Margin0.0-100.04
Operating Margin-40.72-114.07
Sales Turnover0.940.9
Return on Assets-83.14-119.09
Return on Equity0.0-893.42
Debt Q3 FY16 Q3 FY15
Current Ratio4.652.39
Debt/Capital1.070.81
Interest Expense0.00.52
Interest Coverage0.0-14.53


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)52.8333.76
Div / share0.00.0
EPS-0.07-0.24
Book value / share-0.030.1
Institutional Own % n/a n/a
Avg Daily Volume73384.0193246.0

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. 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 price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TEAR NM Peers 59.52   TEAR NA Peers 23.50

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.

TEAR's P/E is negative making this valuation measure meaningless.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TEAR NM Peers 23.66   TEAR NA Peers 0.93

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.

TEAR'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
TEAR NM Peers 7.37   TEAR 31.92 Peers 80.08

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.

TEAR'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, TEAR 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
TEAR 1.14 Peers 5.63   TEAR 17.01 Peers 19.73

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.

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

 

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

TEAR trails its peers on the basis of sales growth

 

 

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