DRAGONWAVE INC's gross profit margin for the third quarter of its fiscal year 2015 has significantly increased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its industry. DRAGONWAVE INC has weak liquidity. Currently, the Quick Ratio is 0.64 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 74.99% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||21.0||47.32|
|Net Income ($mil)||-6.25||-3.76|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||7.78||29.55|
|Total Assets ($mil)||69.24||120.29|
|Total Debt ($mil)||26.86||27.2|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||23.5||16.31|
|Return on Assets||-51.18||-25.64|
|Return on Equity||-309.85||-67.43|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||3.02||3.01|
|Div / share||0.0||0.0|
|Book value / share||3.79||15.2|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||870190.0||302307.0|
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. For additional comparison, its price-to-book ratio of 0.51 indicates a significant discount versus the S&P 500 average of 2.51 and a significant discount versus the industry average of 3.06. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, DRAGONWAVE INC proves to trade at a discount to investment alternatives within the industry.
|DRWI NM||Peers 32.52||DRWI NM||Peers 24.79|
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.
DRWI'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.
DRWI's P/CF is negative making the measure meaningless.
|DRWI NA||Peers 17.02||DRWI NA||Peers 0.54|
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.
|DRWI 0.51||Peers 3.06||DRWI 4.00||Peers 13.24|
Discount. 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.
DRWI is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, DRWI is expected to significantly trail its peers on the basis of its earnings growth rate.
|DRWI 0.05||Peers 2.70||DRWI -10.53||Peers 4.01|
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.
DRWI 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.
DRWI significantly trails its peers on the basis of sales growth
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