FalconStor Software Inc

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FALC : NASDAQ : Technology
$0.24 -0.0049 | -2.0%
Today's Range: 0.2111 - 0.255
Avg. Daily Volume: 370900.0
07/27/17 - 4:00 PM ET

Financial Analysis


FALCONSTOR SOFTWARE INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. FALCONSTOR SOFTWARE INC has very weak liquidity. Currently, the Quick Ratio is 0.34 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 85.54% 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 FY17 Q1 FY16
Net Sales ($mil)6.047.43
EBITDA ($mil)-1.06-3.81
EBIT ($mil)-1.38-4.21
Net Income ($mil)-1.11-4.3


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)3.4311.42
Total Assets ($mil)15.6126.23
Total Debt ($mil)0.00.0
Equity ($mil)-13.77-7.42


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin81.1978.35
EBITDA Margin-17.61-51.23
Operating Margin-22.85-56.58
Sales Turnover1.851.37
Return on Assets-50.04-43.79
Return on Equity0.00.0
Debt Q1 FY17 Q1 FY16
Current Ratio0.40.77
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)44.1542.28
Div / share0.00.0
EPS-0.03-0.11
Book value / share-0.31-0.18
Institutional Own % n/a n/a
Avg Daily Volume332318.0141832.0

Valuation


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. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
FALC NM Peers 70.31   FALC NM Peers 28.96

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.

FALC'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.

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

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
FALC NA Peers 44.37   FALC NA Peers 1.03

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
FALC NM Peers 9.15   FALC 29.04 Peers 60.88

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.

FALC'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, FALC 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
FALC 0.34 Peers 6.86   FALC -19.95 Peers 11.02

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.

FALC 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.

FALC significantly trails its peers on the basis of sales growth

 

 

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