Westell Technologies Inc

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WSTL : NASDAQ : Technology
$0.55 | %
Today's Range: 0.53 - 0.56
Avg. Daily Volume: 80,500
07/29/16 - 4:00 PM ET

Financial Analysis


WESTELL TECH INC's gross profit margin for the fourth quarter of its fiscal year 2015 has significantly increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. WESTELL TECH INC is extremely liquid. Currently, the Quick Ratio is 2.67 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 19.83% 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 FY15 Q4 FY14
Net Sales ($mil)20.9718.68
EBITDA ($mil)-3.12-7.89
EBIT ($mil)-4.88-9.71
Net Income ($mil)-5.08-13.0


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)29.7237.93
Total Assets ($mil)86.03100.31
Total Debt ($mil)0.00.0
Equity ($mil)66.6883.18


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin40.1327.11
EBITDA Margin-14.87-42.26
Operating Margin-23.28-51.99
Sales Turnover1.030.84
Return on Assets-18.84-58.72
Return on Equity-24.72-70.97
Debt Q4 FY15 Q4 FY14
Current Ratio3.575.46
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)61.1260.78
Div / share0.00.0
EPS-0.08-0.22
Book value / share1.091.37
Institutional Own % n/a n/a
Avg Daily Volume64063.051417.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 0.64 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 3.09. 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 27.55   WSTL NM Peers 12.38

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 18.33   WSTL NA Peers 0.62

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

WSTL's ratio is negative making this valuation measure meaningless.

 

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 0.64 Peers 3.09   WSTL 72.73 Peers 51.41

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.

 

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

WSTL is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WSTL 0.48 Peers 3.14   WSTL 4.69 Peers 10.39

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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