SPLK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. SPLK has only an average score on both its financial health and profitability. SPLK is growing strongly while it is still valued neutral. This is a good combination!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year SPLK was profitable.
SPLK had a positive operating cash flow in the past year.
SPLK had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: SPLK reported negative operating cash flow in multiple years.

1.2 Ratios

SPLK has a better Return On Assets (3.94%) than 79.64% of its industry peers.
Looking at the Return On Equity, with a value of 35.62%, SPLK belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.74%, SPLK belongs to the best of the industry, outperforming 81.79% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	3.94%
ROE	35.62%
ROIC	5.74%

ROA(3y)-7.85%

ROA(5y)-9.04%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

SPLK has a Profit Margin of 6.26%. This is in the better half of the industry: SPLK outperforms 79.29% of its industry peers.
The Operating Margin of SPLK (6.34%) is better than 76.07% of its industry peers.
Looking at the Gross Margin, with a value of 79.80%, SPLK belongs to the top of the industry, outperforming 81.79% of the companies in the same industry.
In the last couple of years the Gross Margin of SPLK has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	6.34%
PM (TTM)	6.26%
GM	79.8%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.87%

GM growth 5Y-0.28%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SPLK is destroying value.
Compared to 1 year ago, SPLK has more shares outstanding
The number of shares outstanding for SPLK has been increased compared to 5 years ago.
The debt/assets ratio for SPLK has been reduced compared to a year ago.

2.2 Solvency

SPLK has an Altman-Z score of 2.98. This is not the best score and indicates that SPLK is in the grey zone with still only limited risk for bankruptcy at the moment.
SPLK has a Altman-Z score of 2.98. This is comparable to the rest of the industry: SPLK outperforms 57.14% of its industry peers.
The Debt to FCF ratio of SPLK is 3.15, which is a good value as it means it would take SPLK, 3.15 years of fcf income to pay off all of its debts.
SPLK has a Debt to FCF ratio of 3.15. This is in the better half of the industry: SPLK outperforms 68.93% of its industry peers.
A Debt/Equity ratio of 4.20 is on the high side and indicates that SPLK has dependencies on debt financing.
With a Debt to Equity ratio value of 4.20, SPLK is not doing good in the industry: 85.71% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	4.2
Debt/FCF	3.15
Altman-Z	2.98

ROIC/WACC0.62

WACC9.33%

2.3 Liquidity

SPLK has a Current Ratio of 1.62. This is a normal value and indicates that SPLK is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SPLK (1.62) is comparable to the rest of the industry.
A Quick Ratio of 1.62 indicates that SPLK should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.62, SPLK is in line with its industry, outperforming 50.36% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.62
Quick Ratio	1.62

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

SPLK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 105.68%, which is quite impressive.
The Earnings Per Share has been growing by 32.69% on average over the past years. This is a very strong growth
The Revenue has grown by 15.38% in the past year. This is quite good.
Measured over the past years, SPLK shows a quite strong growth in Revenue. The Revenue has been growing by 18.51% on average per year.

EPS 1Y (TTM)105.68%

EPS 3YN/A

EPS 5Y32.69%

EPS Q2Q%48.04%

Revenue 1Y (TTM)15.38%

Revenue growth 3Y23.66%

Revenue growth 5Y18.51%

Sales Q2Q%18.79%

3.2 Future

Based on estimates for the next years, SPLK will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.06% on average per year.
The Revenue is expected to grow by 16.00% on average over the next years. This is quite good.

EPS Next Y5.2%

EPS Next 2Y12.36%

EPS Next 3Y23.71%

EPS Next 5Y16.06%

Revenue Next Year15.29%

Revenue Next 2Y14.66%

Revenue Next 3Y14%

Revenue Next 5Y16%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

SPLK is valuated quite expensively with a Price/Earnings ratio of 28.90.
Based on the Price/Earnings ratio, SPLK is valued a bit cheaper than 79.64% of the companies in the same industry.
When comparing the Price/Earnings ratio of SPLK to the average of the S&P500 Index (28.87), we can say SPLK is valued inline with the index average.
SPLK is valuated quite expensively with a Price/Forward Earnings ratio of 27.47.
SPLK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SPLK is cheaper than 75.36% of the companies in the same industry.
SPLK is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	28.9
Fwd PE	27.47

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SPLK is valued a bit cheaper than the industry average as 66.07% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SPLK is valued cheaper than 81.79% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	26.82
EV/EBITDA	76.39

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SPLK does not grow enough to justify the current Price/Earnings ratio.
SPLK's earnings are expected to grow with 23.71% in the coming years. This may justify a more expensive valuation.