BroadSoft Inc

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BSFT : NASDAQ : Technology
$38.4 | %
Today's Range: 38.025 - 38.95
Avg. Daily Volume: 285400.0
04/28/17 - 4:00 PM ET

Financial Analysis


BROADSOFT INC's gross profit margin for the fourth quarter of its fiscal year 2016 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 2.61 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.

During the same period, stockholders' equity ("net worth") has increased by 17.19% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)101.9889.59
EBITDA ($mil)20.1125.32
EBIT ($mil)14.3120.62
Net Income ($mil)5.8311.62


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)219.42248.39
Total Assets ($mil)651.2592.37
Total Debt ($mil)201.02188.33
Equity ($mil)301.23257.03


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin82.0883.06
EBITDA Margin19.7128.25
Operating Margin14.0323.02
Sales Turnover0.520.47
Return on Assets0.120.03
Return on Equity0.270.06
Debt Q4 FY16 Q4 FY15
Current Ratio2.742.74
Debt/Capital0.40.42
Interest Expense4.023.79
Interest Coverage3.565.44


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)30.3529.08
Div / share0.00.0
EPS0.190.39
Book value / share9.928.84
Institutional Own % n/a n/a
Avg Daily Volume277496.0337867.0

Valuation


HOLD. BROADSOFT INC's P/E ratio indicates a significant premium compared to an average of 57.32 for the Software industry and a significant premium compared to the S&P 500 average of 24.92. Conducting a second comparison, its price-to-book ratio of 3.84 indicates a premium versus the S&P 500 average of 2.99 and a significant discount versus the industry average of 8.71. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BSFT 1905.00 Peers 57.32   BSFT 17.24 Peers 22.45

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

BSFT is trading at a significant premium to its peers.

 

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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BSFT 14.38 Peers 41.62   BSFT 0.25 Peers 0.84

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.

 

Discount. 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.

BSFT trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BSFT 3.84 Peers 8.71   BSFT NA Peers 44.45

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.

 

Neutral. Higher earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

The growth rate for BSFT is not available.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BSFT 3.39 Peers 6.41   BSFT 22.27 Peers 7.81

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

BSFT has a sales growth rate that significantly exceeds its peers.

 

 

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