Echelon Corp

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ELON : NASDAQ : Technology
$5.35 | %
Today's Range: 5.08 - 5.50
Avg. Daily Volume: 5,800
10/21/16 - 3:57 PM ET

Financial Analysis

ECHELON CORP's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased. ECHELON CORP is extremely liquid. Currently, the Quick Ratio is 3.62 which clearly shows the ability to cover any short-term cash needs. ELON managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 24.45% 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 FY16 Q2 FY15
Net Sales ($mil)8.069.36
EBITDA ($mil)-0.91-0.7
EBIT ($mil)-1.02-1.18
Net Income ($mil)-0.57-5.16

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)24.2127.9
Total Assets ($mil)35.5346.06
Total Debt ($mil)0.00.39
Equity ($mil)26.8435.54

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin59.8464.26
EBITDA Margin-11.23-7.51
Operating Margin-12.69-12.59
Sales Turnover1.020.83
Return on Assets-22.99-39.78
Return on Equity-30.43-46.05
Debt Q2 FY16 Q2 FY15
Current Ratio4.284.27
Interest Expense0.00.13
Interest Coverage0.0-9.21

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)4.434.41
Div / share0.00.0
Book value / share6.068.06
Institutional Own % n/a n/a
Avg Daily Volume5899.09951.0


SELL. 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 0.83 indicates a significant discount versus the S&P 500 average of 2.72 and a significant discount versus the industry average of 2.68. 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, ECHELON CORP proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ELON NM Peers 28.04   ELON NM Peers 14.71

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.

ELON'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.

ELON's P/CF is negative making the measure meaningless.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
ELON NA Peers 19.93   ELON NA Peers 1.59

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ELON 0.83 Peers 2.68   ELON 52.11 Peers -17.93

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.

ELON 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.

ELON is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ELON 0.62 Peers 2.35   ELON -4.67 Peers 5.58

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.

ELON 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.

ELON significantly trails its peers on the basis of sales growth



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