Radisys Corp

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RSYS : NASDAQ : Technology
$4.77 | %
Today's Range: 4.515 - 4.8
Avg. Daily Volume: 204000.0
12/09/16 - 4:00 PM ET

Financial Analysis


RADISYS CORP's gross profit margin for the third quarter of its fiscal year 2016 has decreased 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. RADISYS CORP has average liquidity. Currently, the Quick Ratio is 1.16 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 9.48% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)55.444.78
EBITDA ($mil)2.752.71
EBIT ($mil)-1.43-1.87
Net Income ($mil)-2.64-2.07


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)27.4818.38
Total Assets ($mil)141.3128.19
Total Debt ($mil)25.010.0
Equity ($mil)60.3466.66


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin30.9936.46
EBITDA Margin4.976.06
Operating Margin-2.58-4.17
Sales Turnover1.531.47
Return on Assets-5.4-13.81
Return on Equity-12.65-26.56
Debt Q3 FY16 Q3 FY15
Current Ratio1.451.44
Debt/Capital0.290.13
Interest Expense0.120.1
Interest Coverage-12.31-19.26


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)38.4236.87
Div / share0.00.0
EPS-0.07-0.06
Book value / share1.571.81
Institutional Own % n/a n/a
Avg Daily Volume201121.0271820.0

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. To use another comparison, its price-to-book ratio of 2.78 indicates valuation on par with the S&P 500 average of 2.81 and a discount versus the industry average of 2.80. 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 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
RSYS NM Peers 26.97   RSYS 337.71 Peers 15.60

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 18.21 Peers 20.08   RSYS NA Peers 1.12

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

RSYS is trading at a 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
RSYS 2.78 Peers 2.80   RSYS 56.25 Peers 12.15

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 0.78 Peers 2.10   RSYS 14.42 Peers 4.18

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

RSYS has a sales growth rate that significantly exceeds its peers.

 

 

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