Cornerstone OnDemand Inc

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CSOD : NASDAQ : Technology
$38.58 -0.68 | -1.7%
Today's Range: 38.54 - 39.57
Avg. Daily Volume: 778200.0
09/22/17 - 3:59 PM ET

Financial Analysis


CORNERSTONE ONDEMAND INC's gross profit margin for the second 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. CORNERSTONE ONDEMAND INC has weak liquidity. Currently, the Quick Ratio is 0.77 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 105.11% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)116.65107.01
EBITDA ($mil)-9.92-7.2
EBIT ($mil)-18.57-15.1
Net Income ($mil)-21.27-17.59


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)309.95266.63
Total Assets ($mil)597.4542.52
Total Debt ($mil)243.17233.81
Equity ($mil)29.5614.41


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin77.1473.78
EBITDA Margin-8.5-6.73
Operating Margin-15.92-14.11
Sales Turnover0.740.72
Return on Assets-11.46-13.79
Return on Equity-231.69-519.24
Debt Q2 FY17 Q2 FY16
Current Ratio0.881.49
Debt/Capital0.890.94
Interest Expense3.343.22
Interest Coverage-5.56-4.69


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)57.1855.69
Div / share0.00.0
EPS-0.37-0.32
Book value / share0.520.26
Institutional Own % n/a n/a
Avg Daily Volume738560.0513965.0

Valuation


SELL. 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. For additional comparison, its price-to-book ratio of 77.44 indicates a significant premium versus the S&P 500 average of 3.10 and a significant premium versus the industry average of 11.43. 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, CORNERSTONE ONDEMAND INC proves to trade at a premium 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
CSOD NM Peers 43.74   CSOD 55.20 Peers 43.46

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.

CSOD'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.

CSOD is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CSOD 50.67 Peers 22.53   CSOD NA Peers 0.33

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

CSOD is trading at a significant premium 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
CSOD 77.44 Peers 11.43   CSOD 11.68 Peers 30.99

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CSOD is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, CSOD 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
CSOD 5.14 Peers 10.39   CSOD 14.26 Peers 32.34

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.

CSOD 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.

CSOD significantly trails its peers on the basis of sales growth

 

 

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