FalconStor Software IncFind Ratings Reports
FALCONSTOR SOFTWARE 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. Even though sales decreased, the net income has increased. FALCONSTOR SOFTWARE INC has very weak liquidity. Currently, the Quick Ratio is 0.46 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 318.51% 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 ($mil)||7.33||9.68|
|Net Income ($mil)||-1.98||-2.58|
|Balance Sheet||Q3 FY16||Q3 FY15|
|Cash & Equiv. ($mil)||6.14||16.07|
|Total Assets ($mil)||18.61||31.74|
|Total Debt ($mil)||0.0||0.0|
|Profitability||Q3 FY16||Q3 FY15|
|Gross Profit Margin||75.88||79.61|
|Return on Assets||-63.14||-7.86|
|Return on Equity||0.0||0.0|
|Debt||Q3 FY16||Q3 FY15|
|Share Data||Q3 FY16||Q3 FY15|
|Shares outstanding (mil)||43.56||41.18|
|Div / share||0.0||0.0|
|Book value / share||-0.27||-0.07|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||107982.0||56776.0|
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. 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.
|FALC NM||Peers 50.22||FALC NM||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.
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.
|FALC NA||Peers 50.61||FALC 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.
|FALC NM||Peers 7.84||FALC -210.00||Peers 25.26|
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.
|FALC 0.68||Peers 5.84||FALC -36.78||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.
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