DragonWave IncFind Ratings Reports
DRAGONWAVE INC's gross profit margin for the first quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. DRAGONWAVE INC has very weak liquidity. Currently, the Quick Ratio is 0.43 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 96.12% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q1 FY16||Q1 FY15|
|Net Sales ($mil)||12.55||26.34|
|Net Income ($mil)||-4.1||-5.95|
|Balance Sheet||Q1 FY16||Q1 FY15|
|Cash & Equiv. ($mil)||3.95||18.91|
|Total Assets ($mil)||48.42||113.59|
|Total Debt ($mil)||18.92||34.33|
|Profitability||Q1 FY16||Q1 FY15|
|Gross Profit Margin||31.02||21.07|
|Return on Assets||-83.54||-18.34|
|Return on Equity||-2740.51||-54.65|
|Debt||Q1 FY16||Q1 FY15|
|Share Data||Q1 FY16||Q1 FY15|
|Shares outstanding (mil)||3.62||3.01|
|Div / share||0.0||0.0|
|Book value / share||0.41||12.66|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||120191.0||341338.0|
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 10.84 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 3.09. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, DRAGONWAVE INC proves to trade at a premium to investment alternatives within the industry.
|DRWI NM||Peers 27.55||DRWI NM||Peers 12.38|
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.
DRWI's P/E is negative making this valuation measure meaningless.
Neutral. 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.
DRWI's P/CF is negative making the measure meaningless.
|DRWI NA||Peers 18.33||DRWI NA||Peers 0.62|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.
Ratio not available.
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.
|DRWI 10.84||Peers 3.09||DRWI -71.09||Peers 51.41|
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.
DRWI 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, DRWI is expected to significantly trail its peers on the basis of its earnings growth rate.
|DRWI 0.22||Peers 3.14||DRWI -53.33||Peers 10.39|
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.
DRWI 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.
DRWI significantly trails its peers on the basis of sales growth