BroadSoft Inc.

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BSFT : NASDAQ : Technology Services
$54.9 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 984500.0
02/01/18 - 4:00 PM ET

Financial Analysis

BROADSOFT INC's gross profit margin for the third 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 2.48 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 22.84% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)91.4784.12
EBITDA ($mil)6.57.04
EBIT ($mil)0.571.57
Net Income ($mil)-2.67-0.61

Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)371.07249.4
Total Assets ($mil)714.17627.16
Total Debt ($mil)211.13197.76
Equity ($mil)355.22289.17

Profitability Q3 FY17 Q3 FY16
Gross Profit Margin77.3178.27
EBITDA Margin7.18.36
Operating Margin0.621.86
Sales Turnover0.510.52
Return on Assets-1.451.05
Return on Equity-2.912.28
Debt Q3 FY17 Q3 FY16
Current Ratio2.642.88
Interest Expense4.263.96
Interest Coverage0.130.4

Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)31.5230.07
Div / share0.00.0
Book value / share11.279.62
Institutional Own % n/a n/a
Avg Daily Volume1069671.0879911.0


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 4.87 indicates a premium versus the S&P 500 average of 3.37 and a significant discount versus the industry average of 12.86. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BSFT NM Peers 620.71   BSFT 28.67 Peers 24.30

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.


Premium. 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 premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
BSFT 20.91 Peers 36.61   BSFT NA Peers 2.80

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BSFT 4.87 Peers 12.86   BSFT -259.09 Peers -6.66

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BSFT 4.78 Peers 7.61   BSFT 10.13 Peers 16.53

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.


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

BSFT significantly trails its peers on the basis of sales growth



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