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
Interest Expense0.00.0
Interest Coverage0.00.0

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


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.

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.

1 2 3 4 5
premium   discount
  Price to
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.

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.

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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