ECHELON CORP's gross profit margin for the third quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. ECHELON CORP is extremely liquid. Currently, the Quick Ratio is 3.09 which clearly shows the ability to cover any short-term cash needs. ELON 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.
During the same period, stockholders' equity ("net worth") has decreased by 24.77% 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||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||9.98||9.18|
|Net Income ($mil)||-1.05||-9.19|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||26.61||50.73|
|Total Assets ($mil)||45.12||80.54|
|Total Debt ($mil)||0.13||16.51|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||59.6||63.12|
|Return on Assets||-22.57||-32.02|
|Return on Equity||-29.57||-31.87|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||4.42||4.4|
|Div / share||0.0||0.0|
|Book value / share||7.8||10.41|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||64365.0||96364.0|
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. Conducting a second comparison, its price-to-book ratio of 0.80 indicates a significant discount versus the S&P 500 average of 2.51 and a discount versus the industry average of 2.28. 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, ECHELON CORP proves to trade at a discount to investment alternatives within the industry.
|ELON NM||Peers 24.81||ELON NM||Peers 11.60|
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.
ELON'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.
ELON's P/CF is negative making the measure meaningless.
|ELON NA||Peers 21.54||ELON NA||Peers 1.11|
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.
|ELON 0.80||Peers 2.28||ELON 34.29||Peers 22.67|
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.
ELON is trading at a significant discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
ELON is expected to have an earnings growth rate that significantly exceeds its peers.
|ELON 0.71||Peers 1.75||ELON -6.59||Peers 6.21|
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.
ELON 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.
ELON significantly trails its peers on the basis of sales growth
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