What’s behind Omeros’s Cash Flow



Cash flow

In fiscal 2017, Omeros (OMER) spent $36.2 million on operating activities, compared with $51.5 million in fiscal 2016. This $15.3 million decrease was due to Omeros’s net loss decreasing by $13.3 million and its non-cash charges decreasing by $4 million.

Between fiscal 2016 and fiscal 2017, Omeros’s cash used in investing activities rose from $16.3 million to $37.5 million, primarily due to the company purchasing $465.3 million in short-term investments in fiscal 2017. Its cash flow generated from financing activities rose from $68.6 million to $74.9 million, and its sales from common shares rose from $38 million to $63.7 million.

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Valuation metrics

Omeros’s cash-per-share ratio is 1.6, and its price-to-sales ratio is 10.2. The company’s current ratio, a measure of how effectively it can meet its short-term obligations, is 4.1. In comparison, peers Eli Lilly (LLY), Novavax (NVAX), and Abbott Laboratories (ABT) have current ratios of 1.3, 2.8, and 2.3, respectively.

Stock performance

Between February 27 and March 26, 2018, Omeros stock rose from $10.20 to $12.20. It reached a high of $18 on March 22, though has since corrected amid market volatility.


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