BroadSoft Inc

Find Ratings Reports
BSFT : NASDAQ : Technology
$43.975 -0.27 | -0.62%
Today's Range: 43.3 - 44.35
Avg. Daily Volume: 482700.0
06/27/17 - 3:59 PM ET

Financial Analysis


BROADSOFT INC's gross profit margin for the first 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 3.14 which clearly shows the ability to cover any short-term cash needs. BSFT managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 20.38% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)79.6773.14
EBITDA ($mil)-1.695.02
EBIT ($mil)-7.60.08
Net Income ($mil)-10.54-1.51


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)299.69236.49
Total Assets ($mil)668.43596.03
Total Debt ($mil)204.33191.42
Equity ($mil)321.16266.78


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin76.0178.31
EBITDA Margin-2.116.85
Operating Margin-9.540.11
Sales Turnover0.520.5
Return on Assets-1.220.26
Return on Equity-2.550.59
Debt Q1 FY17 Q1 FY16
Current Ratio3.322.71
Debt/Capital0.390.42
Interest Expense4.073.85
Interest Coverage-1.870.02


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)30.6429.27
Div / share0.00.0
EPS-0.35-0.05
Book value / share10.489.12
Institutional Own % n/a n/a
Avg Daily Volume475287.0227570.0

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. Conducting a second comparison, its price-to-book ratio of 4.13 indicates a premium versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 9.04. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BSFT NM Peers 70.17   BSFT 19.79 Peers 29.09

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BSFT 16.59 Peers 44.61   BSFT NA Peers 0.80

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BSFT 4.13 Peers 9.04   BSFT -660.00 Peers 77.19

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BSFT 3.82 Peers 6.80   BSFT 17.27 Peers 8.69

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.

 

 

Latest Stock Upgrades/Downgrades