FalconStor Software (FALC) AI Stock Analysis

• Market Cap: $9.06M
• Dividend Yield: N/A
• Average Volume (3M): 981.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• Revenue Growth: -8.59%
• EPS Growth: -13.60%
• Country: US
• Employees: 53
• Sector: Technology
• Sector Strength: 65
• Industry: Software - Application
• EPS (TTM): -0.06
• Shares Outstanding: 7,134,504
• 10 Day Avg. Volume: 2,331
• 30 Day Avg. Volume: 981
• PEG Ratio: -0.13
• Price to Book (P/B): -0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

FalconStor Software's overall stock score is negatively impacted by its mixed financial performance, with strong gross margins counterbalanced by high debt levels and cash flow volatility. Technical indicators suggest a downward trend, and valuation metrics reflect unprofitability, further lowering the score. The absence of earnings call and corporate events data means these areas did not contribute to the score.

FalconStor Software Business Overview & Revenue Model

Company Description

FalconStor Software, Inc., a storage software company, enables enterprise customers and managed service providers to secure, migrate, and protect their data worldwide. The company offers FalconStor Virtual Tape Library, a software that emulates and replaces cumbersome legacy physical tape libraries for archive related data preservation without being forced to replace their enterprise backup and archive software and associated processes; FalconStor StorSafe, a long-term archive data management software; FalconStor Continuous Data Protector delivers instant data availability, and reliable recovery; and FalconStor Network Storage Server for data storage virtualization and business continuity in heterogeneous environments. It also provides FalconStor StorSigh, a long-term archive and business continuity driven data replication from one centralized management point; FalconStor RecoverTrac Disaster Recovery Technology that streamlines the implementation, testing, and execution of disaster recovery operations; and FalconStor MicroScanTM Technology, which minimizes the amount of data transferred during replication by eliminating inefficiencies at the application and file system layer. The company sells its products through authorized partners, value-added resellers, solution providers, system integrators, direct market resellers, distributors, managed service providers, cloud service providers, and original equipment manufacturers, as well as directly to customers. FalconStor Software, Inc. was incorporated in 1994 and is headquartered in Austin, Texas.

How the Company Makes Money

FalconStor Software generates revenue primarily through the sale of its software products and related services. The company's key revenue streams include software licensing, subscription fees, and professional services. Software licensing involves selling perpetual or term licenses to enterprises, allowing them to use FalconStor's data protection and storage solutions. Additionally, the company earns recurring revenue from subscription-based models, where customers pay periodically for continued access to software updates and support. Professional services, such as consulting, implementation, and training, also contribute to FalconStor's earnings by helping clients effectively deploy and manage their solutions. Strategic partnerships with technology vendors and resellers further enhance the company's market reach and revenue potential by expanding its customer base and distribution channels.

FalconStor Software Financial Statement Overview

Summary

FalconStor Software exhibits strong profitability in terms of gross margins but faces challenges with declining revenue and negative equity, indicating financial instability. While cash flow generation is positive, there are concerns regarding financial leverage and equity structure, highlighting potential risks.

Income Statement

FalconStor Software shows a strong gross profit margin of 84.84% (TTM), indicating effective cost management. However, the net profit margin is 13.98% (TTM), which is lower compared to peers. The revenue has declined by 3.17% in the past year, suggesting challenges in sustaining growth.

Balance Sheet

The debt-to-equity ratio is negative due to negative stockholder's equity, indicating financial instability. The company also has a negative equity ratio of -155.29% (TTM), reflecting high leverage and potential financial risk. Return on Equity (ROE) is not meaningful due to negative equity.

Cash Flow

Free cash flow is positive, with a free cash flow growth rate of -23.01% from the previous year, showing some decline. The operating cash flow to net income ratio is 0.74, indicating reasonable cash generation relative to income, but room for improvement.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
11.23M	11.60M	10.05M	14.18M	14.77M	16.54M
	Gross Profit
9.53M	9.95M	8.49M	12.23M	12.94M	13.63M
	EBIT
1.71M	1.42M	-1.26M	211.47K	1.32M	104.38K
	EBITDA
1.82M	1.44M	-1.06M	1.58M	3.35M	794.29K
	Net Income Common Stockholders
1.57M	978.38K	-1.80M	203.33K	1.08M	-1.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.40M	3.41M	2.01M	3.18M	1.92M	1.48M
	Total Assets
94.82M	12.62M	10.17M	12.67M	13.41M	15.78M
	Total Debt
0.00	2.37M	2.37M	2.27M	4.74M	6.13M
	Net Debt
-11.60M	-1.04M	363.59K	-914.71K	2.82M	4.66M
	Total Liabilities
30.94M	12.04M	10.65M	11.25M	15.07M	18.50M
	Stockholders Equity
63.88M	572.17K	-479.42K	1.42M	-1.67M	-2.73M
Cash Flow		Free Cash Flow
1.15M	1.50M	-1.24M	-1.07M	625.25K	-2.13M
	Operating Cash Flow
1.16M	1.51M	-1.20M	-883.53K	706.06K	-1.90M
	Investing Cash Flow
-5.32K	-8.14K	-38.08K	-182.35K	-29.08K	-142.86K
	Financing Cash Flow
-130.79K	-86.27K	177.15K	2.33M	-246.00K	455.29K

FalconStor Software Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FALC, the sentiment is Negative. The current price of 1.27 is below the 20-day moving average (MA) of 1.28, below the 50-day MA of 1.41, and below the 200-day MA of 1.53, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 39.76 is Neutral, neither overbought nor oversold. The STOCH value of 85.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FALC.

FalconStor Software Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$10.96B	10.27	-6.73%	2.97%	7.73%	-11.60%
FALC	49 Neutral	$9.06M	―	115.57%	―	-8.59%	-13.60%
ANY	47 Neutral	$15.89M	―	-23.78%	―	-24.19%	72.41%
IDAI	43 Neutral	$5.79M	―	-312.80%	―	-32.41%	-207.11%
SOPA	42 Neutral	$5.69M	―	-601.50%	―	-13.05%	62.51%
SMSI	37 Underperform	$17.98M	―	-55.77%	―	-45.77%	67.69%