BroadSoft Inc
Find Ratings Reports
-0.27 |
-0.62%
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.
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| Income Statement | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Net Sales ($mil) | 79.67 | 73.14 |
| EBITDA ($mil) | -1.69 | 5.02 |
| EBIT ($mil) | -7.6 | 0.08 |
| Net Income ($mil) | -10.54 | -1.51 |
| Balance Sheet | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 299.69 | 236.49 |
| Total Assets ($mil) | 668.43 | 596.03 |
| Total Debt ($mil) | 204.33 | 191.42 |
| Equity ($mil) | 321.16 | 266.78 |
| Profitability | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Gross Profit Margin | 76.01 | 78.31 |
| EBITDA Margin | -2.11 | 6.85 |
| Operating Margin | -9.54 | 0.11 |
| Sales Turnover | 0.52 | 0.5 |
| Return on Assets | -1.22 | 0.26 |
| Return on Equity | -2.55 | 0.59 |
| Debt | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Current Ratio | 3.32 | 2.71 |
| Debt/Capital | 0.39 | 0.42 |
| Interest Expense | 4.07 | 3.85 |
| Interest Coverage | -1.87 | 0.02 |
| Share Data | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Shares outstanding (mil) | 30.64 | 29.27 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.35 | -0.05 |
| Book value / share | 10.48 | 9.12 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 475287.0 | 227570.0 |
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 |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| 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. |
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| Price/Book |
|
Earnings Growth |
|
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| 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. |
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| Price/Sales |
|
Sales Growth |
|
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| BSFT 3.82 | Peers 6.80 | BSFT 17.27 | Peers 8.69 | |||||||||||||||||||||
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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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