BroadSoft Inc
Find Ratings ReportsBROADSOFT INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. BROADSOFT INC is extremely liquid. Currently, the Quick Ratio is 2.80 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 20.31% 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 FY16 | Q2 FY15 |
|---|---|---|
| Net Sales ($mil) | 81.72 | 64.48 |
| EBITDA ($mil) | 5.82 | 0.49 |
| EBIT ($mil) | 0.55 | -4.18 |
| Net Income ($mil) | -2.9 | -5.29 |
| Balance Sheet | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Cash & Equiv. ($mil) | 264.11 | 150.51 |
| Total Assets ($mil) | 616.55 | 471.6 |
| Total Debt ($mil) | 194.56 | 99.96 |
| Equity ($mil) | 277.44 | 230.6 |
| Profitability | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Gross Profit Margin | 78.85 | 75.88 |
| EBITDA Margin | 7.11 | 0.76 |
| Operating Margin | 0.68 | -6.48 |
| Sales Turnover | 0.51 | 0.51 |
| Return on Assets | 0.64 | -0.29 |
| Return on Equity | 1.43 | -0.6 |
| Debt | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Current Ratio | 2.91 | 2.4 |
| Debt/Capital | 0.41 | 0.3 |
| Interest Expense | 3.93 | 2.03 |
| Interest Coverage | 0.14 | -2.06 |
| Share Data | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Shares outstanding (mil) | 29.74 | 29.39 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.1 | -0.18 |
| Book value / share | 9.33 | 7.85 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 351297.0 | 370751.0 |
HOLD. BROADSOFT INC's P/E ratio indicates a significant premium compared to an average of 61.02 for the Software industry and a significant premium compared to the S&P 500 average of 24.84. To use another comparison, its price-to-book ratio of 4.89 indicates a significant premium versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 7.46. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BSFT 351.00 | Peers 61.02 | BSFT 20.99 | Peers 24.07 | |||||||||||||||||||||
|
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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| BSFT 18.25 | Peers 32.48 | BSFT 0.02 | 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. |
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| Price/Book |
|
Earnings Growth |
|
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| BSFT 4.89 | Peers 7.46 | BSFT 316.66 | Peers 36.22 | |||||||||||||||||||||
|
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. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. BSFT is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| BSFT 4.33 | Peers 5.79 | BSFT 30.31 | Peers 4.57 | |||||||||||||||||||||
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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. |
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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