Synchronoss Technologies Inc

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SNCR : NASDAQ : Technology
$41.27 -1.32 | -3.1%
Today's Range: 39.51 - 42.95
Avg. Daily Volume: 391100.0
12/07/16 - 4:00 PM ET

Financial Analysis


SYNCHRONOSS TECHNOLOGIES's gross profit margin for the third quarter of its fiscal year 2016 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. SYNCHRONOSS TECHNOLOGIES is extremely liquid. Currently, the Quick Ratio is 2.31 which clearly shows the ability to cover any 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 increased by 5.95% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)176.42150.87
EBITDA ($mil)40.0542.56
EBIT ($mil)15.3622.81
Net Income ($mil)7.689.65


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)140.29210.8
Total Assets ($mil)1124.73921.64
Total Debt ($mil)277.02243.89
Equity ($mil)631.17595.73


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin56.2257.95
EBITDA Margin22.728.2
Operating Margin8.7115.12
Sales Turnover0.560.6
Return on Assets0.045.31
Return on Equity0.088.22
Debt Q3 FY16 Q3 FY15
Current Ratio2.625.73
Debt/Capital0.310.29
Interest Expense1.61.45
Interest Coverage9.6215.75


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)45.3244.08
Div / share0.00.0
EPS0.160.21
Book value / share13.9313.52
Institutional Own % n/a n/a
Avg Daily Volume383458.0319382.0

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. Conducting a second comparison, its price-to-book ratio of 3.52 indicates a premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 7.65. 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, SYNCHRONOSS TECHNOLOGIES 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
SNCR NM Peers 48.70   SNCR 18.74 Peers 22.15

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.

SNCR'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.

SNCR is trading at a 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
SNCR 15.91 Peers 27.77   SNCR NA Peers 0.78

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

SNCR 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
SNCR 3.52 Peers 7.65   SNCR -100.93 Peers 25.33

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.

SNCR 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, SNCR 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
SNCR 3.50 Peers 5.58   SNCR 14.86 Peers 4.80

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.

SNCR 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.

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

 

 

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