WidePoint Corporation
Find Ratings ReportsWIDEPOINT CORP's gross profit margin for the third quarter of its fiscal year 2021 has significantly increased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its subsector. WIDEPOINT CORP has average liquidity. Currently, the Quick Ratio is 1.47 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 55.93% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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| Income Statement | Q3 FY21 | Q3 FY20 |
|---|---|---|
| Net Sales ($mil) | 22.25 | 57.51 |
| EBITDA ($mil) | -0.09 | 1.56 |
| EBIT ($mil) | -0.49 | 1.15 |
| Net Income ($mil) | 0.54 | 1.07 |
| Balance Sheet | Q3 FY21 | Q3 FY20 |
|---|---|---|
| Cash & Equiv. ($mil) | 18.1 | 11.37 |
| Total Assets ($mil) | 75.43 | 87.41 |
| Total Debt ($mil) | 6.08 | 6.68 |
| Equity ($mil) | 43.15 | 27.68 |
| Profitability | Q3 FY21 | Q3 FY20 |
|---|---|---|
| Gross Profit Margin | 17.06 | 10.0 |
| EBITDA Margin | -0.42 | 2.71 |
| Operating Margin | -2.21 | 2.0 |
| Sales Turnover | 1.21 | 2.06 |
| Return on Assets | 12.19 | 2.29 |
| Return on Equity | 21.32 | 7.24 |
| Debt | Q3 FY21 | Q3 FY20 |
|---|---|---|
| Current Ratio | 1.56 | 1.15 |
| Debt/Capital | 0.12 | 0.19 |
| Interest Expense | 0.07 | 0.07 |
| Interest Coverage | -7.22 | 16.41 |
| Share Data | Q3 FY21 | Q3 FY20 |
|---|---|---|
| Shares outstanding (mil) | 9.14 | 8.46 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.06 | 0.1 |
| Book value / share | 4.72 | 3.27 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 57100.0 | 68698.0 |
HOLD. WIDEPOINT CORP's P/E ratio indicates a significant discount compared to an average of 42.96 for the Professional, Scientific, and Technical Services subsector and a significant discount compared to the S&P 500 average of 26.57. For additional comparison, its price-to-book ratio of 0.82 indicates a significant discount versus the S&P 500 average of 4.63 and a significant discount versus the subsector average of 9.66. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, WIDEPOINT CORP proves to trade at a discount to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| WYY 3.71 | Peers 42.96 | WYY 10.28 | Peers 31.09 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. WYY is trading at a significant discount to its peers. |
Discount. 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. WYY is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| WYY 21.44 | Peers 29.46 | WYY NM | Peers 1.52 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. WYY 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. WYY's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
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| WYY 0.82 | Peers 9.66 | WYY 246.66 | Peers 96.48 | |||||||||||||||||||||
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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. WYY 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. WYY is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| WYY 0.39 | Peers 5.53 | WYY -49.31 | Peers 17.50 | |||||||||||||||||||||
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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. WYY is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. WYY significantly trails its peers on the basis of sales growth. |
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