DragonWave IncFind Ratings Reports
DRAGONWAVE INC's gross profit margin for the second 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 0.48 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 101.98% 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||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||13.23||26.92|
|Net Income ($mil)||-3.94||-20.97|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||7.47||13.08|
|Total Assets ($mil)||50.03||88.33|
|Total Debt ($mil)||17.09||33.16|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||29.15||14.8|
|Return on Assets||-46.8||-37.3|
|Return on Equity||0.0||-189.3|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||5.49||3.02|
|Div / share||0.0||0.0|
|Book value / share||-0.06||5.77|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||686107.0||78193.0|
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. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.
|DRWI NM||Peers 32.49||DRWI 4.57||Peers 14.47|
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.
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.
DRWI is trading at a significant discount to its peers.
|DRWI NA||Peers 20.78||DRWI NA||Peers 1.01|
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 NM||Peers 3.25||DRWI 35.83||Peers 76.36|
Neutral. 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.
DRWI's P/B is negative making this valuation measure meaningless.
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 0.25||Peers 2.91||DRWI -59.25||Peers 19.75|
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