FalconStor Software (FALC) AI Stock Analysis

• Market Cap: $12.49M
• Dividend Yield: N/A
• Average Volume (3M): 268.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -11.13%
• EPS Growth: -3138.60%
• Country: US
• Employees: 53
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.11
• Shares Outstanding: 7,134,504
• 10 Day Avg. Volume: 400
• 30 Day Avg. Volume: 268
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.55
• Enterprise Value/Revenue: 3.00
• Enterprise Value/Gross Profit: 3.55
• Enterprise Value/Ebitda: 31.71
• 1Y Price Target: $1.50
• Price Target Upside: -14.29% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: $1.50 ▼(-14.29% Downside)

FalconStor Software's overall score reflects its financial challenges, including high leverage and inconsistent cash flow, which are significant risks. The technical analysis indicates neutral momentum, while the valuation highlights unprofitability, contributing to a lower 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 generates revenue primarily through the sale of its software licenses and subscription-based services. Key revenue streams include software licensing fees for its proprietary data protection and storage solutions, along with ongoing maintenance and support contracts. Additionally, the company earns income from subscription services related to its cloud offerings and software-as-a-service (SaaS) products. Partnerships with cloud providers, technology integrators, and resellers also play a significant role in driving sales and expanding market reach, contributing to overall earnings through collaborative sales efforts and joint marketing initiatives.

FalconStor Software Financial Statement Overview

Summary

FalconStor Software demonstrates a mixed financial position. Strong gross margins are offset by challenges in revenue growth and operational efficiency. High leverage and cash flow instability pose potential risks to financial health.

Income Statement

The income statement shows mixed performance with fluctuating revenue growth. Recent years have seen a decline in total revenue, and net profit margins have improved but remain modest. Gross profit margins are strong, indicating effective cost management, while both EBIT and EBITDA margins are relatively low, suggesting room for operational improvement.

Balance Sheet

The balance sheet reveals significant debt levels with a high debt-to-equity ratio, indicating heavy reliance on leverage. Stockholders' equity is low but has shown improvement over the years. The equity ratio remains weak, reflecting potential financial vulnerability.

Cash Flow

Cash flow analysis reveals volatility, with negative operating cash flow in the most recent year and fluctuating free cash flow. The company struggles to maintain consistent cash flow generation, posing potential liquidity risks. Despite some positive years, the overall cash flow trajectory suggests challenges in sustaining operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.61M	10.42M	11.60M	10.05M	14.18M	14.77M
Gross Profit	8.98M	8.75M	9.95M	8.49M	12.23M	12.94M
EBITDA	1.00M	907.35K	1.44M	-1.06M	1.58M	3.35M
Net Income	893.89K	693.91K	978.38K	-1.80M	203.33K	1.08M
Balance Sheet
Total Assets	11.17M	12.04M	12.62M	10.17M	12.67M	13.41M
Cash, Cash Equivalents and Short-Term Investments	3.32M	2.49M	3.41M	2.01M	3.18M	1.92M
Total Debt	2.19M	2.21M	2.37M	2.37M	2.27M	4.74M
Total Liabilities	10.14M	11.07M	12.04M	10.65M	11.25M	15.07M
Stockholders Equity	1.03M	967.14K	572.17K	-479.42K	1.42M	-1.67M
Cash Flow
Free Cash Flow	743.55K	-503.38K	1.50M	-1.24M	-1.07M	625.25K
Operating Cash Flow	833.23K	-476.01K	1.51M	-1.20M	-883.53K	706.06K
Investing Cash Flow	-89.69K	-27.37K	-8.14K	-38.08K	-182.35K	-29.08K
Financing Cash Flow	-52.32K	-91.56K	-86.27K	177.15K	2.33M	-246.00K

FalconStor Software Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.75 is below the 20-day moving average (MA) of 1.76, below the 50-day MA of 1.79, and above the 200-day MA of 1.66, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.06 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, 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 *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SOPA	50 Neutral	$18.81M	―	-247.72%	―	0.31%	70.95%
FALC	49 Neutral	$12.49M	―	95.56%	―	-11.13%	-3138.60%
ANY	47 Neutral	$24.41M	―	-39.10%	―	-56.72%	49.76%
IDAI	43 Neutral	$8.19M	―	-575.54%	―	-28.60%	-294.74%
SMSI	42 Neutral	$15.74M	―	-94.92%	―	-38.89%	64.99%