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LivePerson Inc
LPSN : NASDAQ : Technology
$12.91 0.13 | 1.02%
Today's Range: 12.76 - 12.94
Avg. Daily Volume: 459,500
08/29/14 - 4:00 PM ET

Financial Analysis


LIVEPERSON INC's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. LIVEPERSON INC is extremely liquid. Currently, the Quick Ratio is 2.52 which clearly shows the ability to cover any 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 remained virtually unchanged only increasing by 3.38% 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 Q2 FY14 Q2 FY13
Net Sales ($mil)51.0943.23
EBITDA ($mil)1.830.48
EBIT ($mil)-1.48-1.99
Net Income ($mil)-1.21-1.83


Balance Sheet Q2 FY14 Q2 FY13
Cash & Equiv. ($mil)71.2374.95
Total Assets ($mil)197.35184.6
Total Debt ($mil)0.00.0
Equity ($mil)154.74149.67


Profitability Q2 FY14 Q2 FY13
Gross Profit Margin79.1679.57
EBITDA Margin3.581.1
Operating Margin-2.9-4.6
Sales Turnover0.970.91
Return on Assets-1.740.55
Return on Equity-2.220.68
Debt Q2 FY14 Q2 FY13
Current Ratio2.863.52
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY14 Q2 FY13
Shares outstanding (mil)54.353.9
Div / share0.00.0
EPS-0.02-0.03
Book value / share2.852.78
Institutional Own % n/a n/a
Avg Daily Volume457213.0428823.0

Valuation


HOLD. 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 4.48 indicates a significant premium versus the S&P 500 average of 2.74 and a discount versus the industry average of 5.68. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, LIVEPERSON INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LPSN NM Peers 35.32   LPSN 53.10 Peers 30.96

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.

LPSN's P/E is negative making this valuation measure meaningless.

 

Premium. 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.

LPSN is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
LPSN 42.32 Peers 46.82   LPSN NA Peers 0.94

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

LPSN is trading at a premium to its peers.

 

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LPSN 4.48 Peers 5.68   LPSN -266.66 Peers 23.88

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.

LPSN is trading at a discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, LPSN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LPSN 3.63 Peers 8.85   LPSN 13.77 Peers 32.93

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.

LPSN 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.

LPSN significantly trails its peers on the basis of sales growth

 

 

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