SPLK : NASDAQ : Technology
$56.82 up 0.01 | 0.02%
Today's Range: 56.44 - 57.95
Avg. Daily Volume: 1710800.0
12/09/16 - 4:00 PM ET

Financial Analysis


SPLUNK INC'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. SPLUNK INC is extremely liquid. Currently, the Quick Ratio is 2.16 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.18% 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 ($mil)244.79174.42
EBITDA ($mil)-82.67-66.65
EBIT ($mil)-90.95-72.35
Net Income ($mil)-93.49-72.97


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1027.0948.53
Total Assets ($mil)1574.961379.11
Total Debt ($mil)0.00.0
Equity ($mil)814.17840.95


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin83.4785.58
EBITDA Margin-33.77-38.21
Operating Margin-37.16-41.48
Sales Turnover0.550.43
Return on Assets-22.87-18.59
Return on Equity-44.25-30.49
Debt Q3 FY16 Q3 FY15
Current Ratio2.222.72
Debt/Capital0.00.0
Interest Expense0.820.0
Interest Coverage-110.510.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)134.45129.61
Div / share0.00.0
EPS-0.69-0.57
Book value / share6.066.49
Institutional Own % n/a n/a
Avg Daily Volume1689648.01714864.0

Valuation


SELL. 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. For additional comparison, its price-to-book ratio of 9.29 indicates a significant premium versus the S&P 500 average of 2.86 and a significant premium versus the industry average of 7.76. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, SPLUNK INC seems to be trading 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
SPLK NM Peers 49.36   SPLK 42.79 Peers 22.46

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.

SPLK'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.

SPLK 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
SPLK 109.26 Peers 46.02   SPLK NA Peers 0.77

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

SPLK 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
SPLK 9.29 Peers 7.76   SPLK -32.68 Peers 25.23

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SPLK is trading at a premium to its peers.

 

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

However, SPLK 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
SPLK 8.76 Peers 5.68   SPLK 44.93 Peers 4.72

Premium. 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.

SPLK is trading at a significant premium to its industry.

 

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

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

 

 

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