The Ultimate Software Group Inc.

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ULTI : NASDAQ : Technology Services
$245.62 | %
Today's Range: 243.83 - 247.79
Avg. Daily Volume: 297800.0
02/16/18 - 4:00 PM ET

Financial Analysis


ULTIMATE SOFTWARE GROUP INC's gross profit margin for the fourth quarter of its fiscal year 2017 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 0.42 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 19.88% 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.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)251.43210.55
EBITDA ($mil)29.0323.19
EBIT ($mil)20.0415.3
Net Income ($mil)-2.0612.77


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)165.1289.31
Total Assets ($mil)1377.211152.58
Total Debt ($mil)9.959.04
Equity ($mil)518.03432.11


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin67.0565.87
EBITDA Margin11.5411.01
Operating Margin7.977.26
Sales Turnover0.680.68
Return on Assets1.022.62
Return on Equity2.717.0
Debt Q4 FY17 Q4 FY16
Current Ratio1.181.1
Debt/Capital0.020.02
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)30.1429.35
Div / share0.00.0
EPS-0.070.42
Book value / share17.1914.73
Institutional Own % n/a n/a
Avg Daily Volume309872.0335826.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 636.95 for the Software industry and a significant premium compared to the S&P 500 average of 25.51. For additional comparison, its price-to-book ratio of 14.37 indicates a significant premium versus the S&P 500 average of 3.26 and a significant premium versus the industry average of 12.45. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ULTI 548.80 Peers 636.95   ULTI 34.79 Peers 23.78

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

ULTI is trading at a discount 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 37.46 Peers 43.83   ULTI 0.51 Peers 2.78

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

ULTI is trading at a valuation on par with 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.

ULTI 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
ULTI 14.37 Peers 12.45   ULTI -55.00 Peers -8.01

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 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 7.91 Peers 7.60   ULTI 20.40 Peers 17.12

Average. 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 valuation on par with its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

ULTI has a sales growth rate that exceeds its peers.

 

 

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