FALCONSTOR SOFTWARE INC's gross profit margin for the second quarter of its fiscal year 2014 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. FALCONSTOR SOFTWARE INC has average liquidity. Currently, the Quick Ratio is 1.34 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.
During the same period, stockholders' equity ("net worth") has increased by 18.83% 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||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||11.3||13.97|
|Net Income ($mil)||1.33||-5.21|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||28.78||21.88|
|Total Assets ($mil)||49.06||47.51|
|Total Debt ($mil)||0.0||0.0|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||81.36||77.43|
|Return on Assets||-5.73||-32.62|
|Return on Equity||-57.59||-281.49|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||44.97||48.02|
|Div / share||0.0||0.0|
|Book value / share||0.15||0.11|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||49095.0||104932.0|
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 8.25 indicates a significant premium versus the S&P 500 average of 2.72 and a discount versus the industry average of 8.45. 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 discount to investment alternatives within the industry.
|FALC NM||Peers 42.83||FALC NM||Peers 25.24|
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 48.11||FALC NA||Peers 2.72|
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 8.25||Peers 8.45||FALC 75.76||Peers 55.61|
Average. 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 is trading at a valuation on par with 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 1.02||Peers 5.69||FALC -23.47||Peers 12.42|
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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