ROVI : NASDAQ : Technology
$21.22 up 0.00 | 0.02%
Today's Range: 20.99 - 21.48
Avg. Daily Volume: 976,600
08/29/16 - 3:59 PM ET

Financial Analysis


ROVI CORP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. ROVI CORP is extremely liquid. Currently, the Quick Ratio is 4.20 which clearly shows the ability to cover any short-term cash needs. ROVI managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.14% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)125.25127.82
EBITDA ($mil)40.7739.58
EBIT ($mil)17.4115.9
Net Income ($mil)-9.413.34


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)273.89216.84
Total Assets ($mil)2205.912316.34
Total Debt ($mil)970.831049.58
Equity ($mil)1028.091050.65


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin80.0779.92
EBITDA Margin32.5430.96
Operating Margin13.912.44
Sales Turnover0.230.23
Return on Assets-0.87-1.07
Return on Equity-1.86-2.34
Debt Q2 FY16 Q2 FY15
Current Ratio4.53.41
Debt/Capital0.490.5
Interest Expense16.377.32
Interest Coverage1.062.17


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)83.386.86
Div / share0.00.0
EPS-0.110.04
Book value / share12.3412.1
Institutional Own % n/a n/a
Avg Daily Volume965991.01167975.0

Valuation


HOLD. 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. To use another comparison, its price-to-book ratio of 1.75 indicates a discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 7.52. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, ROVI CORP 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
ROVI NM Peers 59.58   ROVI 14.15 Peers 23.28

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.

ROVI'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.

ROVI 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
ROVI 8.19 Peers 33.35   ROVI NA Peers 0.85

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

ROVI 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
ROVI 1.75 Peers 7.52   ROVI 14.82 Peers 27.93

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.

ROVI is trading at a significant discount to its peers.

 

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

However, ROVI 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
ROVI 3.54 Peers 5.94   ROVI -3.17 Peers 5.44

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.

ROVI 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.

ROVI significantly trails its peers on the basis of sales growth

 

 

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