ServiceSource International Inc

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SREV : NASDAQ : Technology
$3.48 | %
Today's Range: 3.45 - 3.52
Avg. Daily Volume: 221200.0
09/22/17 - 4:00 PM ET

Financial Analysis


SERVICESOURCE INTL INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. SERVICESOURCE INTL INC is extremely liquid. Currently, the Quick Ratio is 7.67 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 15.45% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)58.2661.97
EBITDA ($mil)1.830.94
EBIT ($mil)-4.62-3.27
Net Income ($mil)-13.1-5.22


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)179.14194.04
Total Assets ($mil)286.85306.82
Total Debt ($mil)139.33130.45
Equity ($mil)110.27130.43


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin42.3741.24
EBITDA Margin3.131.51
Operating Margin-7.93-5.28
Sales Turnover0.860.8
Return on Assets-14.81-10.19
Return on Equity-38.53-23.98
Debt Q2 FY17 Q2 FY16
Current Ratio7.936.47
Debt/Capital0.560.5
Interest Expense2.892.72
Interest Coverage-1.6-1.2


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)89.0285.54
Div / share0.00.0
EPS-0.15-0.06
Book value / share1.241.52
Institutional Own % n/a n/a
Avg Daily Volume238670.0204711.0

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. To use another comparison, its price-to-book ratio of 2.81 indicates valuation on par with the S&P 500 average of 3.11 and a significant discount versus the industry average of 9.41. The price-to-sales ratio is well below both the S&P 500 average and 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 34.20   SREV NM Peers 21.43

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.

 

Neutral. 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's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SREV 24.86 Peers 24.71   SREV NA Peers 1.36

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

SREV 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
SREV 2.81 Peers 9.41   SREV -32.43 Peers 10.72

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.

 

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

However, SREV 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
SREV 1.26 Peers 6.28   SREV 0.01 Peers 13.27

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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