FalconStor Software Inc

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FALC : NASDAQ : Technology
$0.4151 -0.0084 | -2.0%
Today's Range: 0.401 - 0.45
Avg. Daily Volume: 1630200.0
09/20/17 - 11:44 AM ET

Financial Analysis


FALCONSTOR SOFTWARE 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. Even though sales decreased, the net income has increased. FALCONSTOR SOFTWARE INC has very weak liquidity. Currently, the Quick Ratio is 0.25 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 43.01% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)6.738.07
EBITDA ($mil)-0.28-3.16
EBIT ($mil)-0.52-3.51
Net Income ($mil)-0.64-3.53


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1.659.43
Total Assets ($mil)12.6923.55
Total Debt ($mil)0.00.0
Equity ($mil)-14.54-10.17


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin77.2275.61
EBITDA Margin-4.15-39.2
Operating Margin-7.68-43.55
Sales Turnover2.171.47
Return on Assets-38.77-52.46
Return on Equity0.00.0
Debt Q2 FY17 Q2 FY16
Current Ratio0.30.69
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)44.5343.33
Div / share0.00.0
EPS-0.02-0.09
Book value / share-0.33-0.23
Institutional Own % n/a n/a
Avg Daily Volume1430823.0190453.0

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 39.51   FALC NM Peers 33.27

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 35.26   FALC NA Peers 1.17

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 9.45   FALC 54.55 Peers 42.80

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

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

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
FALC 0.91 Peers 7.05   FALC -20.37 Peers 12.14

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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