FalconStor Software Inc

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FALC : NASDAQ : Technology
$0.3999 up 0.024 | 6.4%
Today's Range: 0.36 - 0.4
Avg. Daily Volume: 143100.0
03/29/17 - 3:58 PM ET

Financial Analysis


FALCONSTOR SOFTWARE INC's gross profit margin for the fourth 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. FALCONSTOR SOFTWARE INC has very weak liquidity. Currently, the Quick Ratio is 0.42 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 226.55% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)7.449.4
EBITDA ($mil)0.0-1.57
EBIT ($mil)-0.59-2.04
Net Income ($mil)-1.19-1.94


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)3.3913.43
Total Assets ($mil)17.2830.43
Total Debt ($mil)0.00.0
Equity ($mil)-12.7-3.89


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin74.4881.7
EBITDA Margin0.0-16.71
Operating Margin-7.99-21.71
Sales Turnover1.751.6
Return on Assets-63.64-6.33
Return on Equity0.00.0
Debt Q4 FY16 Q4 FY15
Current Ratio0.480.9
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)43.5641.67
Div / share0.00.0
EPS-0.05-0.06
Book value / share-0.29-0.09
Institutional Own % n/a n/a
Avg Daily Volume149580.087382.0

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 55.43   FALC NM Peers 21.92

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 33.36   FALC NA Peers 0.83

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 8.41   FALC -200.00 Peers 43.15

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 0.52 Peers 6.32   FALC -37.70 Peers 7.57

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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