FALCONSTOR SOFTWARE INC's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. FALCONSTOR SOFTWARE INC has weak liquidity. Currently, the Quick Ratio is 0.96 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 105.18% 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||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||9.55||11.3|
|Net Income ($mil)||-2.67||1.33|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||18.83||28.78|
|Total Assets ($mil)||36.01||49.06|
|Total Debt ($mil)||0.0||0.0|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||77.63||81.36|
|Return on Assets||-8.74||-5.73|
|Return on Equity||0.0||-57.59|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||40.92||44.97|
|Div / share||0.0||0.0|
|Book value / share||-0.01||0.15|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||60858.0||48236.0|
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. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount.
|FALC NM||Peers 62.93||FALC NM||Peers 25.43|
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, 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.
FALC's P/CF is negative making the measure meaningless.
|FALC NA||Peers 37.25||FALC NA||Peers 0.84|
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 NM||Peers 5.84||FALC -37.50||Peers -11.68|
Neutral. 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.
FALC's P/B is negative making this valuation measure meaningless.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, FALC is expected to significantly trail its peers on the basis of its earnings growth rate.
|FALC 1.30||Peers 6.15||FALC -0.42||Peers 16.03|
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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