Westell Technologies Inc

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WSTL : NASDAQ : Technology
$3.56 up 0.38 | 11.95%
Today's Range: 3.19 - 3.57
Avg. Daily Volume: 51600.0
07/24/17 - 4:00 PM ET

Financial Analysis


WESTELL TECH INC's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. WESTELL TECH INC is extremely liquid. Currently, the Quick Ratio is 2.83 which clearly shows the ability to cover any short-term cash needs. WSTL 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 decreased by 21.75% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)15.3920.9
EBITDA ($mil)0.92-3.18
EBIT ($mil)-0.51-4.95
Net Income ($mil)-0.56-5.08


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)21.7829.72
Total Assets ($mil)65.5486.03
Total Debt ($mil)0.00.0
Equity ($mil)52.1766.68


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin45.7739.95
EBITDA Margin5.96-15.22
Operating Margin-3.33-23.66
Sales Turnover0.961.03
Return on Assets-24.32-18.84
Return on Equity-30.55-24.72
Debt Q4 FY16 Q4 FY15
Current Ratio3.993.57
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)15.515.28
Div / share0.00.0
EPS-0.04-0.32
Book value / share3.374.36
Institutional Own % n/a n/a
Avg Daily Volume113361.0182199.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.90 indicates a significant discount versus the S&P 500 average of 3.07 and a significant discount versus the industry average of 3.46. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, WESTELL TECH 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
WSTL NM Peers 24.53   WSTL NM Peers 15.04

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

WSTL's P/E is negative making this valuation measure meaningless.

 

Neutral. 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.

WSTL's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WSTL NA Peers 21.77   WSTL NA Peers 1.09

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

WSTL is trading at a significant premium to its peers.

 

Neutral. 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WSTL 0.90 Peers 3.46   WSTL 3.71 Peers 10.25

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.

WSTL 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, WSTL 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
WSTL 0.75 Peers 3.07   WSTL -28.62 Peers 11.02

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.

WSTL 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.

WSTL significantly trails its peers on the basis of sales growth

 

 

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