SPLK : NASDAQ : Technology
$62.62 -0.18 | -0.29%
Today's Range: 61.37 - 63.15
Avg. Daily Volume: 1903300.0
02/27/17 - 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
Interest Expense0.820.0
Interest Coverage-110.510.0

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)135.58129.61
Div / share0.00.0
Book value / share6.016.49
Institutional Own % n/a n/a
Avg Daily Volume1879141.01510774.0


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 10.81 indicates a significant premium versus the S&P 500 average of 2.96 and a significant premium versus the industry average of 8.86. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SPLK NM Peers 52.40   SPLK 49.58 Peers 23.05

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
SPLK 80.12 Peers 58.71   SPLK NA Peers 0.83

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SPLK 10.81 Peers 8.86   SPLK -32.68 Peers 37.37

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SPLK 10.19 Peers 6.15   SPLK 44.93 Peers 7.42

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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