TearLab Corp

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TEAR : NASDAQ : Health Care
$1.34 -0.03 | -2.2%
Today's Range: 1.34 - 1.3899
Avg. Daily Volume: 680500.0
09/22/17 - 9:53 AM ET

Financial Analysis

TEARLAB CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. TEARLAB CORP has strong liquidity. Currently, the Quick Ratio is 1.97 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 923.28% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)7.016.9
EBITDA ($mil)-2.32-2.5
EBIT ($mil)-2.84-3.41
Net Income ($mil)-3.89-4.34

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)10.2420.11
Total Assets ($mil)20.1932.54
Total Debt ($mil)27.3725.52
Equity ($mil)-13.471.64

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin62.8265.03
EBITDA Margin-33.04-36.15
Operating Margin-40.46-49.34
Sales Turnover1.390.83
Return on Assets-82.42-87.85
Return on Equity0.0-1747.37
Debt Q2 FY17 Q2 FY16
Current Ratio2.64.98
Interest Expense1.051.05
Interest Coverage-2.71-3.26

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)5.745.28
Div / share0.00.0
Book value / share-2.350.31
Institutional Own % n/a n/a
Avg Daily Volume658332.0185930.0


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

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TEAR NM Peers 48.70   TEAR NM Peers 37.09

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, 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.

TEAR's P/CF is negative making the measure meaningless.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
TEAR NA Peers 33.41   TEAR NA Peers 1.03

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.


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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TEAR NM Peers 4.90   TEAR 62.97 Peers 47.56

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.


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

TEAR is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TEAR 0.29 Peers 5.32   TEAR 3.63 Peers 15.38

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 significantly trails its peers on the basis of sales growth



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