BroadSoft Inc
Find Ratings Reports
0.4 |
0.94%
BROADSOFT INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. BROADSOFT INC is extremely liquid. Currently, the Quick Ratio is 3.73 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 19.96% 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 FY17 | Q2 FY16 |
|---|---|---|
| Net Sales ($mil) | 88.76 | 81.72 |
| EBITDA ($mil) | 4.14 | 5.79 |
| EBIT ($mil) | -1.52 | 0.55 |
| Net Income ($mil) | -2.98 | -2.9 |
| Balance Sheet | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 367.54 | 264.11 |
| Total Assets ($mil) | 682.05 | 616.55 |
| Total Debt ($mil) | 207.7 | 194.56 |
| Equity ($mil) | 332.83 | 277.44 |
| Profitability | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Gross Profit Margin | 77.53 | 78.82 |
| EBITDA Margin | 4.66 | 7.08 |
| Operating Margin | -1.71 | 0.68 |
| Sales Turnover | 0.52 | 0.51 |
| Return on Assets | -1.21 | 0.64 |
| Return on Equity | -2.49 | 1.43 |
| Debt | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Current Ratio | 3.94 | 2.91 |
| Debt/Capital | 0.38 | 0.41 |
| Interest Expense | 4.14 | 3.93 |
| Interest Coverage | -0.37 | 0.14 |
| Share Data | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Shares outstanding (mil) | 30.9 | 29.74 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.1 | -0.1 |
| Book value / share | 10.77 | 9.33 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 412751.0 | 423688.0 |
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. Conducting a second comparison, its price-to-book ratio of 4.13 indicates a premium versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 8.60. 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, BROADSOFT INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BSFT NM | Peers 59.76 | BSFT 22.44 | Peers 37.05 | |||||||||||||||||||||
|
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. BSFT's P/E is negative making this valuation measure meaningless. |
Discount. 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. BSFT is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| BSFT 16.77 | Peers 34.04 | BSFT NA | Peers 1.12 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. BSFT is trading at a significant discount 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. |
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| Price/Book |
|
Earnings Growth |
|
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| BSFT 4.13 | Peers 8.60 | BSFT -315.38 | Peers 89.33 | |||||||||||||||||||||
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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. BSFT 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, BSFT is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
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| BSFT 3.87 | Peers 6.93 | BSFT 13.07 | Peers 12.04 | |||||||||||||||||||||
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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. BSFT is trading at a significant discount to its industry on this measurement. |
Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share. BSFT is keeping pace with its peers on the basis of sales growth. |
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