Radisys Corp

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RSYS : NASDAQ : Technology
$5.21 | %
Today's Range: 5.02 - 5.25
Avg. Daily Volume: 285,800
07/22/16 - 4:00 PM ET

Financial Analysis


RADISYS CORP's gross profit margin for the first quarter of its fiscal year 2016 has decreased 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. RADISYS CORP has weak liquidity. Currently, the Quick Ratio is 0.98 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 9.46% 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 ($mil)55.1548.69
EBITDA ($mil)2.581.92
EBIT ($mil)-1.77-2.86
Net Income ($mil)-2.97-7.05


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)22.3815.85
Total Assets ($mil)133.04131.39
Total Debt ($mil)15.010.0
Equity ($mil)64.3471.06


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin28.7833.16
EBITDA Margin4.673.94
Operating Margin-3.21-5.87
Sales Turnover1.441.5
Return on Assets-7.96-18.41
Return on Equity-16.46-34.05
Debt Q1 FY16 Q1 FY15
Current Ratio1.461.37
Debt/Capital0.190.12
Interest Expense0.120.22
Interest Coverage-15.11-13.17


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)37.0436.7
Div / share0.00.0
EPS-0.08-0.19
Book value / share1.741.94
Institutional Own % n/a n/a
Avg Daily Volume279915.0206490.0

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. For additional comparison, its price-to-book ratio of 2.80 indicates valuation on par with the S&P 500 average of 2.80 and a premium versus the industry average of 2.55. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, RADISYS CORP proves to trade at a premium 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
RSYS NM Peers 31.62   RSYS 58.29 Peers 13.29

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.

RSYS'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.

RSYS 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
RSYS 14.29 Peers 18.74   RSYS NA Peers 3.21

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

RSYS is trading at a valuation on par with 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
RSYS 2.80 Peers 2.55   RSYS 56.07 Peers -22.94

Average. 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.

RSYS is trading at a valuation on par with its peers.

 

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

RSYS 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
RSYS 0.94 Peers 2.30   RSYS -3.33 Peers 19.47

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.

RSYS 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.

RSYS significantly trails its peers on the basis of sales growth

 

 

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