Edgewater Technology Inc

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EDGW : NASDAQ : Technology
$6.52 -0.08 | -1.2%
Today's Range: 6.4 - 6.66
Avg. Daily Volume: 12400.0
09/21/17 - 3:59 PM ET

Financial Analysis


EDGEWATER TECHNOLOGY 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. Sales and net income have dropped, underperforming the average competitor within its industry. EDGEWATER TECHNOLOGY INC is extremely liquid. Currently, the Quick Ratio is 2.20 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.70% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)30.3134.02
EBITDA ($mil)2.533.08
EBIT ($mil)1.742.03
Net Income ($mil)-0.861.31


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)13.0910.74
Total Assets ($mil)100.77106.34
Total Debt ($mil)5.05.0
Equity ($mil)78.0876.77


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin37.9937.81
EBITDA Margin8.359.05
Operating Margin5.755.96
Sales Turnover1.191.18
Return on Assets-6.87-2.88
Return on Equity-8.87-3.99
Debt Q2 FY17 Q2 FY16
Current Ratio2.31.75
Debt/Capital0.060.06
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)13.9312.28
Div / share0.00.0
EPS-0.060.09
Book value / share5.616.25
Institutional Own % n/a n/a
Avg Daily Volume15289.037124.0

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.21 indicates a significant discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 9.38. 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, EDGEWATER TECHNOLOGY INC proves to trade at a discount 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
EDGW NM Peers 33.98   EDGW 47.57 Peers 21.36

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.

EDGW'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.

EDGW 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
EDGW 14.74 Peers 24.61   EDGW NA Peers 1.36

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EDGW 1.21 Peers 9.38   EDGW -89.65 Peers 10.74

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.

EDGW 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, EDGW 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
EDGW 0.79 Peers 6.29   EDGW -4.38 Peers 13.26

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.

EDGW 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.

EDGW significantly trails its peers on the basis of sales growth

 

 

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