ServiceSource International Inc

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SREV : NASDAQ : Technology
$5.99 up 0.08 | 1.35%
Today's Range: 5.87 - 6.1
Avg. Daily Volume: 200400.0
12/07/16 - 4:00 PM ET

Financial Analysis


SERVICESOURCE INTL INC's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. SERVICESOURCE INTL INC is extremely liquid. Currently, the Quick Ratio is 6.87 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 decreased by 16.79% 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 ($mil)62.5159.43
EBITDA ($mil)2.24-4.41
EBIT ($mil)-2.21-8.19
Net Income ($mil)-9.27-10.9


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)190.87210.6
Total Assets ($mil)302.04319.07
Total Debt ($mil)132.65126.18
Equity ($mil)127.11152.76


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin41.3534.38
EBITDA Margin3.57-7.41
Operating Margin-3.54-13.78
Sales Turnover0.830.82
Return on Assets-9.8-15.07
Return on Equity-23.29-31.49
Debt Q3 FY16 Q3 FY15
Current Ratio7.047.76
Debt/Capital0.510.45
Interest Expense2.792.63
Interest Coverage-0.79-3.12


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)86.9286.11
Div / share0.00.0
EPS-0.11-0.13
Book value / share1.461.77
Institutional Own % n/a n/a
Avg Daily Volume199075.0459983.0

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 3.98 indicates a premium versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 7.90. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. After reviewing these and other key valuation criteria, SERVICESOURCE INTL INC 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
SREV NM Peers 27.05   SREV 42.25 Peers 19.72

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.

SREV'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.

SREV 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
SREV 253.04 Peers 20.95   SREV NA Peers 1.58

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

SREV's ratio is negative making this valuation measure meaningless.

 

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
SREV 3.98 Peers 7.90   SREV 38.60 Peers 12.58

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.

SREV is trading at a significant discount to its peers.

 

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

SREV 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
SREV 2.03 Peers 5.20   SREV -4.86 Peers 16.45

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.

SREV is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SREV significantly trails its peers on the basis of sales growth

 

 

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