Document Security Systems IncFind Ratings Reports
DOCUMENT SECURITY SYS INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. DOCUMENT SECURITY SYS INC has very weak liquidity. Currently, the Quick Ratio is 0.35 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 80.18% 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||Q3 FY16||Q3 FY15|
|Net Sales ($mil)||4.98||4.42|
|Net Income ($mil)||-0.03||-0.86|
|Balance Sheet||Q3 FY16||Q3 FY15|
|Cash & Equiv. ($mil)||1.01||1.54|
|Total Assets ($mil)||13.86||26.37|
|Total Debt ($mil)||6.62||8.02|
|Profitability||Q3 FY16||Q3 FY15|
|Gross Profit Margin||42.27||42.17|
|Return on Assets||-84.64||-118.48|
|Return on Equity||-421.26||-222.37|
|Debt||Q3 FY16||Q3 FY15|
|Share Data||Q3 FY16||Q3 FY15|
|Shares outstanding (mil)||12.98||12.66|
|Div / share||0.0||0.0|
|Book value / share||0.21||1.11|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||41165.0||46181.0|
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. Conducting a second comparison, its price-to-book ratio of 3.92 indicates a premium versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 7.84. 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, DOCUMENT SECURITY SYS INC proves to trade at a discount to investment alternatives within the industry.
|DSS NM||Peers 50.22||DSS 18.07||Peers 22.87|
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.
DSS'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.
DSS is trading at a discount to its peers.
|DSS NA||Peers 50.61||DSS NA||Peers 0.80|
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.
|DSS 3.92||Peers 7.84||DSS 66.22||Peers 25.26|
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.
DSS is trading at a significant discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
DSS is expected to have an earnings growth rate that significantly exceeds its peers.
|DSS 0.58||Peers 5.84||DSS 11.81||Peers 5.17|
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.
DSS 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.
DSS has a sales growth rate that significantly exceeds its peers.