Quantum Corp

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QTM : NYSE : Technology
$0.64 -0.00 | -0.03%
Today's Range: 0.62 - 0.65
Avg. Daily Volume: 1,236,900
08/31/16 - 4:01 PM ET

Financial Analysis


QUANTUM CORP's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. QUANTUM CORP has weak liquidity. Currently, the Quick Ratio is 0.78 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 89.81% 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 FY16 Q1 FY15
Net Sales ($mil)116.28110.86
EBITDA ($mil)1.46-6.09
EBIT ($mil)0.03-7.95
Net Income ($mil)-3.8-10.76


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)37.2856.4
Total Assets ($mil)208.75314.62
Total Debt ($mil)131.12152.41
Equity ($mil)-129.06-67.99


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin44.5544.04
EBITDA Margin1.25-5.49
Operating Margin0.03-7.17
Sales Turnover2.311.7
Return on Assets-32.443.28
Return on Equity0.00.0
Debt Q1 FY16 Q1 FY15
Current Ratio1.170.9
Debt/Capital63.711.81
Interest Expense1.511.92
Interest Coverage0.02-4.13


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)266.47258.7
Div / share0.00.0
EPS-0.01-0.04
Book value / share-0.48-0.26
Institutional Own % n/a n/a
Avg Daily Volume1547197.01838919.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. 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
QTM NM Peers 15.48   QTM 20.90 Peers 10.71

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.

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

 

Premium. 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.

QTM is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
QTM 11.60 Peers 13.60   QTM NA Peers 0.34

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

QTM is trading at a significant premium 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
QTM NM Peers 4.04   QTM -933.33 Peers -19.35

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.

QTM'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, QTM 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
QTM 0.32 Peers 2.32   QTM -10.16 Peers -1.73

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.

QTM 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.

QTM significantly trails its peers on the basis of sales growth

 

 

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