The Ultimate Software Group Inc

Find Ratings Reports
ULTI : NASDAQ : Technology
$209.53 | %
Today's Range: 207.08 - 209.94
Avg. Daily Volume: 211,600
09/23/16 - 4:00 PM ET

Financial Analysis


ULTIMATE SOFTWARE GROUP 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, representing a decrease to the bottom line. ULTIMATE SOFTWARE GROUP INC has very weak liquidity. Currently, the Quick Ratio is 0.21 which clearly shows a lack of ability to cover 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 23.91% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)186.54147.23
EBITDA ($mil)14.9412.98
EBIT ($mil)8.467.63
Net Income ($mil)1.683.66


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)97.99110.82
Total Assets ($mil)1518.03868.23
Total Debt ($mil)9.668.93
Equity ($mil)364.45294.12


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin64.5864.05
EBITDA Margin8.08.81
Operating Margin4.545.18
Sales Turnover0.460.64
Return on Assets1.254.52
Return on Equity5.2113.36
Debt Q2 FY16 Q2 FY15
Current Ratio1.081.17
Debt/Capital0.030.03
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)28.9328.56
Div / share0.00.0
EPS0.060.12
Book value / share12.610.3
Institutional Own % n/a n/a
Avg Daily Volume215420.0233654.0

Valuation


HOLD. ULTIMATE SOFTWARE GROUP INC's P/E ratio indicates a significant premium compared to an average of 62.28 for the Software industry and a significant premium compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 16.52 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 7.58. 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, ULTIMATE SOFTWARE GROUP INC proves to trade at a premium 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
ULTI 325.19 Peers 62.28   ULTI 50.32 Peers 24.12

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

ULTI is trading at a significant premium to its peers.

 

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.

ULTI 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
ULTI 50.95 Peers 32.90   ULTI 0.98 Peers 0.86

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

ULTI is trading at a significant premium to its peers.

 

Premium. 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.

ULTI trades at a premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ULTI 16.52 Peers 7.58   ULTI -51.88 Peers 35.16

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.

ULTI is trading at a significant premium to its peers.

 

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

However, ULTI 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
ULTI 8.61 Peers 5.85   ULTI 26.08 Peers 4.71

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.

ULTI 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.

ULTI has a sales growth rate that significantly exceeds its peers.

 

 

Latest Stock Upgrades/Downgrades