BroadSoft Inc

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BSFT : NASDAQ : Technology
$47.30 | %
Today's Range: 45.82 - 47.50
Avg. Daily Volume: 355,300
07/22/16 - 4:00 PM ET

Financial Analysis


BROADSOFT INC's gross profit margin for the first 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 2.58 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 16.84% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)73.1455.67
EBITDA ($mil)5.022.94
EBIT ($mil)0.08-1.28
Net Income ($mil)-1.51-2.91


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)236.49167.37
Total Assets ($mil)596.03458.09
Total Debt ($mil)191.4298.49
Equity ($mil)266.78228.33


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin78.3178.81
EBITDA Margin6.855.27
Operating Margin0.11-2.29
Sales Turnover0.50.5
Return on Assets0.261.21
Return on Equity0.592.43
Debt Q1 FY16 Q1 FY15
Current Ratio2.712.63
Debt/Capital0.420.3
Interest Expense3.251.78
Interest Coverage0.02-0.72


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)29.2729.07
Div / share0.00.0
EPS-0.05-0.1
Book value / share9.127.85
Institutional Own % n/a n/a
Avg Daily Volume353227.0372695.0

Valuation


HOLD. BROADSOFT INC's P/E ratio indicates a significant premium compared to an average of 58.30 for the Software industry and a significant premium compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 5.04 indicates a significant premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 6.93. 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 919.60 Peers 58.30   BSFT 22.43 Peers 21.62

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.

 

Average. 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 valuation on par 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 18.39 Peers 47.03   BSFT 0.05 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 5.04 Peers 6.93   BSFT -72.23 Peers -2.42

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 4.54 Peers 5.86   BSFT 29.61 Peers 5.32

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 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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