I took a glance at this one. The size of the company, my lack of knowledge of the business, and the fact that there are no SEC filings to look at are enough to keep me from going further, though that's my problem, not the company's. However, I would caution you IRT thinking of this as a software stock. I think a better comparison might be a company like Keane, EDS, CSC, etc.. To be a software company, or at least a software company that deserves the high P/B ratio you were discussing, the majority of revenues needs to come from licensing or other forms of software sales. This company appears to have a heavy services component, and the higher the ratio of services to revenues, the less desirable the company, at least when viewed through that lens. I also notice that from 2001 - 2003, operating costs have risen sharply as a percentage of revenues. That is exactly the opposite of what you would expect from a growing software company.
This is all from a five minute look at their Annual Report, so take it FWIW. |
