WidePoint Corporation
Find Ratings ReportsWIDEPOINT CORP's gross profit margin for the third quarter of its fiscal year 2020 has significantly decreased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its subsector. WIDEPOINT CORP has average liquidity. Currently, the Quick Ratio is 1.13 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 10.04% 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 FY20 | Q3 FY19 |
|---|---|---|
| Net Sales ($mil) | 57.51 | 29.62 |
| EBITDA ($mil) | 1.56 | 0.77 |
| EBIT ($mil) | 1.15 | 0.29 |
| Net Income ($mil) | 1.07 | 0.18 |
| Balance Sheet | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 11.37 | 7.1 |
| Total Assets ($mil) | 87.41 | 55.78 |
| Total Debt ($mil) | 6.68 | 5.9 |
| Equity ($mil) | 27.68 | 25.15 |
| Profitability | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Gross Profit Margin | 10.0 | 15.35 |
| EBITDA Margin | 2.71 | 2.59 |
| Operating Margin | 2.0 | 0.98 |
| Sales Turnover | 2.06 | 1.76 |
| Return on Assets | 2.29 | -0.27 |
| Return on Equity | 7.24 | -0.6 |
| Debt | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Current Ratio | 1.15 | 1.21 |
| Debt/Capital | 0.19 | 0.19 |
| Interest Expense | 0.07 | 0.08 |
| Interest Coverage | 16.41 | 3.71 |
| Share Data | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Shares outstanding (mil) | 8.46 | 8.48 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.1 | 0.0 |
| Book value / share | 3.27 | 2.97 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 508889.0 | 960188.0 |
HOLD. This stock's P/E ratio indicates a significant discount compared to an average of 57.98 for the Professional, Scientific, and Technical Services subsector and a premium compared to the S&P 500 average of 38.64. To use another comparison, its price-to-book ratio of 3.77 indicates valuation on par with the S&P 500 average of 4.02 and a significant discount versus the subsector average of 27.77. 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 41.13 | Peers 108.22 | WYY 16.16 | Peers 143.45 | |||||||||||||||||||||
|
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 32.47 | Peers 217.54 | WYY NA | Peers 2.74 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. WYY is trading at a significant discount 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. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| WYY 3.77 | Peers 27.77 | WYY NA | Peers 21.34 | |||||||||||||||||||||
|
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. |
Neutral. Higher earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. The growth rate for WYY is not available. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| WYY 0.58 | Peers 15.67 | WYY 82.99 | Peers 18.14 | |||||||||||||||||||||
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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. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. WYY has a sales growth rate that significantly exceeds its peers. |
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