Sykes Enterprises Inc.

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SYKE : NASDAQ : Technology Services
$30.37 | %
Today's Range: 29.875 - 30.56
Avg. Daily Volume: 139600.0
02/23/18 - 4:00 PM ET

Financial Analysis


SYKES ENTERPRISES INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. SYKES ENTERPRISES INC is extremely liquid. Currently, the Quick Ratio is 3.17 which clearly shows the ability to cover any short-term cash needs. SYKE managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 10.51% 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 FY17 Q3 FY16
Net Sales ($mil)407.31385.74
EBITDA ($mil)46.845.49
EBIT ($mil)27.2827.24
Net Income ($mil)21.721.27


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)339.44292.44
Total Assets ($mil)1312.681248.83
Total Debt ($mil)267.0272.0
Equity ($mil)802.45726.09


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin34.3235.23
EBITDA Margin11.4811.79
Operating Margin6.77.06
Sales Turnover1.191.13
Return on Assets5.125.15
Return on Equity8.388.86
Debt Q3 FY17 Q3 FY16
Current Ratio3.293.02
Debt/Capital0.250.27
Interest Expense2.021.38
Interest Coverage13.519.76


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)42.7742.78
Div / share0.00.0
EPS0.520.5
Book value / share18.7616.97
Institutional Own % n/a n/a
Avg Daily Volume130418.0172118.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 66.51 for the IT Services industry and a discount compared to the S&P 500 average of 25.25. For additional comparison, its price-to-book ratio of 1.62 indicates a significant discount versus the S&P 500 average of 3.23 and a significant discount versus the industry average of 11.22. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, SYKES ENTERPRISES 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
SYKE 18.85 Peers 66.51   SYKE 8.86 Peers 24.22

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SYKE is trading at a significant discount to its peers.

 

Discount. 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.

SYKE is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SYKE 15.02 Peers 24.65   SYKE 0.62 Peers 1.76

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SYKE is trading at a significant discount to its peers.

 

Discount. 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.

SYKE trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SYKE 1.62 Peers 11.22   SYKE 5.22 Peers 23.58

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.

SYKE 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, SYKE 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
SYKE 0.83 Peers 6.88   SYKE 10.49 Peers 16.59

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.

SYKE 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.

SYKE significantly trails its peers on the basis of sales growth

 

 

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