Sykes Enterprises Inc

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SYKE : NASDAQ : Technology
$28.05 up 0.55 | 2.00%
Today's Range: 27.56 - 28.06
Avg. Daily Volume: 154,200
09/30/16 - 1:03 PM ET

Financial Analysis


SYKES ENTERPRISES INC's gross profit margin for the second 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. SYKES ENTERPRISES INC is extremely liquid. Currently, the Quick Ratio is 3.04 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 increased by 7.28% 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 FY16 Q2 FY15
Net Sales ($mil)364.4307.45
EBITDA ($mil)33.5932.66
EBIT ($mil)16.3718.22
Net Income ($mil)9.1412.91


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)281.73230.09
Total Assets ($mil)1218.99928.57
Total Debt ($mil)272.065.0
Equity ($mil)708.89660.77


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin34.2934.25
EBITDA Margin9.2110.62
Operating Margin4.495.93
Sales Turnover1.11.41
Return on Assets5.177.28
Return on Equity8.910.24
Debt Q2 FY16 Q2 FY15
Current Ratio3.183.5
Debt/Capital0.280.09
Interest Expense1.280.61
Interest Coverage12.7829.86


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)42.9342.88
Div / share0.00.0
EPS0.220.31
Book value / share16.5115.41
Institutional Own % n/a n/a
Avg Daily Volume155201.0160474.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 27.32 for the IT Services industry and a discount compared to the S&P 500 average of 24.99. To use another comparison, its price-to-book ratio of 1.71 indicates a discount versus the S&P 500 average of 2.80 and a significant discount versus the industry average of 8.09. 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 18.65 Peers 27.32   SYKE 9.40 Peers 20.38

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 13.74 Peers 21.85   SYKE 1.41 Peers 2.40

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 1.71 Peers 8.09   SYKE -5.63 Peers 22.29

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 0.90 Peers 5.50   SYKE 2.02 Peers 23.18

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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