FALCONSTOR SOFTWARE INC's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. FALCONSTOR SOFTWARE INC has average liquidity. Currently, the Quick Ratio is 1.40 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 69.33% 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.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||11.18||14.73|
|Net Income ($mil)||-3.23||-2.22|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||26.58||29.47|
|Total Assets ($mil)||45.98||53.46|
|Total Debt ($mil)||0.0||0.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||76.81||79.08|
|Return on Assets||-8.32||-26.47|
|Return on Equity||-137.42||-118.5|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||44.97||48.03|
|Div / share||0.0||0.0|
|Book value / share||0.08||0.25|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||71645.0||63741.0|
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 12.36 indicates a significant premium versus the S&P 500 average of 2.75 and a significant premium versus the industry average of 6.53. 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, FALCONSTOR SOFTWARE INC proves to trade at a premium to investment alternatives within the industry.
|FALC NM||Peers 36.38||FALC NA||Peers 25.52|
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.
FALC's P/E is negative making this valuation measure meaningless.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|FALC NA||Peers 56.06||FALC NA||Peers 8.34|
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.
|FALC 12.36||Peers 6.53||FALC 63.34||Peers -21.01|
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.
FALC is trading at a significant premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
FALC is expected to have an earnings growth rate that significantly exceeds its peers.
|FALC 0.92||Peers 6.58||FALC -26.10||Peers 15.52|
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.
FALC 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.
FALC significantly trails its peers on the basis of sales growth
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