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Cornerstone OnDemand Inc.
CSOD : NASDAQ : Technology

$45.64 0.89 | 1.99%
Today's Range: 44.83 - 46.14
Avg. Daily Volume: 395,500
06/19/13 - 2:56 PM ET

Financial Analysis


CORNERSTONE ONDEMAND INC's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. CORNERSTONE ONDEMAND INC has average liquidity. Currently, the Quick Ratio is 1.02 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 24.43% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.



Income Statement Q1 FY13 Q1 FY12
Net Sales ($mil)37.6624.0
EBITDA ($mil)-7.72-6.4
EBIT ($mil)-9.84-7.56
Net Income ($mil)-9.93-8.11


Balance Sheet Q1 FY13 Q1 FY12
Cash & Equiv. ($mil)76.1787.19
Total Assets ($mil)165.12130.68
Total Debt ($mil)6.94.56
Equity ($mil)43.3757.39


Profitability Q1 FY13 Q1 FY12
Gross Profit Margin75.0976.32
EBITDA Margin-20.49-26.65
Operating Margin-26.13-31.49
Sales Turnover0.80.62
Return on Assets-20.11-18.68
Return on Equity-76.58-42.54
Debt Q1 FY13 Q1 FY12
Current Ratio1.21.8
Debt/Capital0.140.07
Interest Expense0.080.14
Interest Coverage-124.57-52.85


Share Data Q1 FY13 Q1 FY12
Shares outstanding (mil)50.9849.7
Div / share0.00.0
EPS-0.2-0.16
Book value / share0.851.15
Institutional Own % n/a n/a
Avg Daily Volume378358.0327970.0

Valuation


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 49.95 indicates a significant premium versus the S&P 500 average of 2.42 and a significant premium versus the industry average of 5.17. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, CORNERSTONE ONDEMAND INC seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CSOD NM Peers 124.53   CSOD 280.46 Peers 27.29

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.

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

 

Premium. 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.

CSOD is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CSOD NA Peers 29.11   CSOD NA Peers 1.01

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.

CSOD'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
CSOD 49.95 Peers 5.17   CSOD -34.00 Peers 25.37

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.

CSOD is trading at a significant premium to its peers.

 

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

However, CSOD 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
CSOD 16.46 Peers 7.94   CSOD 61.87 Peers 61.56

Premium. 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.

CSOD is trading at a significant premium to its industry.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

CSOD is keeping pace with its peers on the basis of sales growth.

 

 

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