SPLK : NASDAQ : Technology
$59.50 -0.19 | -0.32%
Today's Range: 59.13 - 60.25
Avg. Daily Volume: 1,835,100
07/27/16 - 4:00 PM ET

Financial Analysis


SPLUNK INC's gross profit margin for the first 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 2.41 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.32% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)185.95125.67
EBITDA ($mil)-91.68-67.51
EBIT ($mil)-98.14-70.98
Net Income ($mil)-100.9-71.19


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)1022.49865.14
Total Assets ($mil)1483.861240.0
Total Debt ($mil)0.00.0
Equity ($mil)833.05814.09


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin82.1184.21
EBITDA Margin-49.3-53.72
Operating Margin-52.78-56.48
Sales Turnover0.490.4
Return on Assets-20.78-19.15
Return on Equity-37.03-29.17
Debt Q1 FY16 Q1 FY15
Current Ratio2.482.95
Debt/Capital0.00.0
Interest Expense0.40.0
Interest Coverage-243.530.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)132.68125.34
Div / share0.00.0
EPS-0.77-0.57
Book value / share6.286.5
Institutional Own % n/a n/a
Avg Daily Volume1827193.02217562.0

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 9.29 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 6.93. 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 58.30   SPLK 47.66 Peers 21.62

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 121.50 Peers 47.03   SPLK NA Peers 0.84

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 6.93   SPLK -22.56 Peers -2.42

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 significant 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 10.62 Peers 5.86   SPLK 48.52 Peers 5.32

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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