Nuance Communications Inc

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NUAN : NASDAQ : Technology
$16.67 up 0.24 | 1.5%
Today's Range: 16.47 - 16.71
Avg. Daily Volume: 3098100.0
03/24/17 - 12:24 PM ET

Financial Analysis


NUANCE COMMUNICATIONS 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 increased, the net income has decreased, representing a decrease to the bottom line. NUANCE COMMUNICATIONS INC has weak liquidity. Currently, the Quick Ratio is 0.87 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 15.09% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)487.66486.12
EBITDA ($mil)97.77100.14
EBIT ($mil)39.7641.87
Net Income ($mil)-23.93-12.07


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)1095.29566.44
Total Assets ($mil)6195.135530.63
Total Debt ($mil)2938.692119.83
Equity ($mil)1925.72268.03


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin62.6264.13
EBITDA Margin20.0420.6
Operating Margin8.158.61
Sales Turnover0.310.35
Return on Assets-0.39-1.38
Return on Equity-1.26-3.37
Debt Q1 FY17 Q1 FY16
Current Ratio0.931.72
Debt/Capital0.60.48
Interest Expense38.0229.88
Interest Coverage1.051.4


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)291.44304.48
Div / share0.00.0
EPS-0.08-0.04
Book value / share6.617.45
Institutional Own % n/a n/a
Avg Daily Volume3121415.02526284.0

Valuation


HOLD. 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. To use another comparison, its price-to-book ratio of 2.58 indicates a discount versus the S&P 500 average of 2.98 and a significant discount versus the industry average of 8.58. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, NUANCE COMMUNICATIONS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NUAN NM Peers 56.43   NUAN 8.84 Peers 22.32

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.

NUAN's P/E is negative making this valuation measure meaningless.

 

Discount. 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.

NUAN is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NUAN 10.23 Peers 34.27   NUAN NA Peers 0.84

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

NUAN is trading at a significant discount to its peers.

 

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
NUAN 2.58 Peers 8.58   NUAN 68.00 Peers 43.23

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.

NUAN 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.

NUAN 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
NUAN 2.55 Peers 6.34   NUAN 0.37 Peers 7.65

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.

NUAN 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.

NUAN significantly trails its peers on the basis of sales growth

 

 

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