Westell Technologies, Inc.
Westell Technologies, Inc. Fundamental Analysis
Westell Technologies, Inc. (WSTL) shows strong financial fundamentals with a PE ratio of 1.75, profit margin of 41.21%, and ROE of 53.68%. The company generates $0.1B in annual revenue with strong year-over-year growth of 21.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze WSTL's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWSTL demonstrates superior asset utilization.
Valuation Score
ExcellentWSTL trades at attractive valuation levels.
Growth Score
ModerateWSTL shows steady but slowing expansion.
Financial Health Score
ExcellentWSTL maintains a strong and stable balance sheet.
Profitability Score
ExcellentWSTL achieves industry-leading margins.
Key Financial Metrics
Is WSTL Expensive or Cheap?
P/E Ratio
WSTL trades at 1.75 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WSTL's PEG of 0.21 indicates potential undervaluation.
Price to Book
The market values Westell Technologies, Inc. at 0.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.10 times EBITDA. This is generally considered low.
How Well Does WSTL Make Money?
Net Profit Margin
For every $100 in sales, Westell Technologies, Inc. keeps $41.21 as profit after all expenses.
Operating Margin
Core operations generate 20.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $53.68 in profit for every $100 of shareholder equity.
ROA
Westell Technologies, Inc. generates $39.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Westell Technologies, Inc. produces operating cash flow of $10.75M, showing steady but balanced cash generation.
Free Cash Flow
Westell Technologies, Inc. generates strong free cash flow of $10.67M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.05 in free cash annually.
FCF Yield
WSTL converts 22.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.54
vs 25 benchmark
ROA
Return on assets percentage
0.40
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How WSTL Stacks Against Its Sector Peers
| Metric | WSTL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.75 | 34.36 | Better (Cheaper) |
| ROE | 53.68% | 1116.00% | Weak |
| Net Margin | 41.21% | -125859.00% (disorted) | Strong |
| Debt/Equity | 0.08 | 7.88 | Strong (Low Leverage) |
| Current Ratio | 7.04 | 5.74 | Strong Liquidity |
| ROA | 39.97% | -308994.00% (disorted) | Strong |
WSTL outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Westell Technologies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
90.45%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
278.33%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
34.68%
Industry Style: Growth, Innovation, High Beta
High Growth