VVUS : NASDAQ : Health Care
$1.4 | %
Today's Range: 1.36 - 1.46
Avg. Daily Volume: 467000.0
12/02/16 - 4:00 PM ET

Financial Analysis


VIVUS INC'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. Even though sales decreased, the net income has increased. VIVUS INC is extremely liquid. Currently, the Quick Ratio is 4.43 which clearly shows the ability to cover any short-term cash needs. VVUS 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 242.42% 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 ($mil)13.7822.99
EBITDA ($mil)-3.39-11.34
EBIT ($mil)-3.66-11.69
Net Income ($mil)-11.4-49.35


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)220.21274.17
Total Assets ($mil)252.01311.32
Total Debt ($mil)236.36232.15
Equity ($mil)-29.4420.67


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin82.7758.56
EBITDA Margin-24.57-49.33
Operating Margin-26.56-50.84
Sales Turnover0.280.36
Return on Assets-20.79-34.07
Return on Equity0.0-513.18
Debt Q2 FY16 Q2 FY15
Current Ratio4.774.71
Debt/Capital1.140.92
Interest Expense8.58.4
Interest Coverage-0.43-1.39


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)104.18103.87
Div / share0.00.0
EPS-0.11-0.48
Book value / share-0.280.2
Institutional Own % n/a n/a
Avg Daily Volume369193.0629701.0

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 below the S&P 500 average and is well below 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
VVUS NM Peers 27.27   VVUS NM Peers 18.34

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.

VVUS'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.

VVUS'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
VVUS NM Peers 14.26   VVUS NA Peers 0.49

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.

VVUS'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
VVUS NM Peers 64.34   VVUS 51.46 Peers -12.59

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.

VVUS'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.

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

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
VVUS 1.76 Peers 13.92   VVUS -37.37 Peers 5.28

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.

VVUS 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.

VVUS significantly trails its peers on the basis of sales growth

 

 

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