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Westell Technologies Inc.
WSTL : NASDAQ : Technology

$2.44 -0.01 | -0.41%
Today's Range: 2.39 - 2.49
Avg. Daily Volume: 144,400
06/19/13 - 4:00 PM ET

Financial Analysis


WESTELL TECH INC's gross profit margin for the fourth quarter of its fiscal year 2012 has decreased 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. WESTELL TECH INC is extremely liquid. Currently, the Quick Ratio is 15.07 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 significantly decreased by 29.66% 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.



Income Statement Q4 FY12 Q4 FY11
Net Sales ($mil)10.6611.33
EBITDA ($mil)-2.21-0.7
EBIT ($mil)-2.57-0.97
Net Income ($mil)-38.16-2.45


Balance Sheet Q4 FY12 Q4 FY11
Cash & Equiv. ($mil)115.08142.74
Total Assets ($mil)145.17197.43
Total Debt ($mil)0.00.0
Equity ($mil)131.08186.36


Profitability Q4 FY12 Q4 FY11
Gross Profit Margin38.0640.09
EBITDA Margin-20.74-6.14
Operating Margin-24.1-8.54
Sales Turnover0.280.35
Return on Assets-30.3321.26
Return on Equity-33.1810.42
Debt Q4 FY12 Q4 FY11
Current Ratio16.8124.99
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY12 Q4 FY11
Shares outstanding (mil)58.9164.37
Div / share0.00.0
EPS-0.66-0.04
Book value / share2.232.9
Institutional Own % n/a n/a
Avg Daily Volume159044.0141314.0

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. To use another comparison, its price-to-book ratio of 1.08 indicates a discount versus the S&P 500 average of 2.42 and a significant discount versus the industry average of 2.59. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, WESTELL TECH INC seems to be trading at a premium 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
WSTL NM Peers 19.30   WSTL NM Peers 14.29

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.

WSTL'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.

WSTL's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WSTL 28.35 Peers 18.84   WSTL NA Peers 0.42

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

WSTL's ratio is negative making this valuation measure meaningless.

 

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
WSTL 1.08 Peers 2.59   WSTL -367.85 Peers -37.41

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.

WSTL is trading at a significant discount to its peers.

 

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

However, WSTL 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
WSTL 3.55 Peers 2.96   WSTL -42.52 Peers 13.57

Premium. 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.

WSTL is trading at a premium to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

WSTL significantly trails its peers on the basis of sales growth

 

 

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