Business-management software maker Tibco Software
What Fools say:
Tibco is rated a meek three stars in CAPS today, after sniffing around the four-star level for a while. So far, 136 Fools have contributed to the grade.
Here's how Tibco's CAPS score rates against some of its peers and competitors:
Market Cap (billions) |
CAPS Rating (out of 5) |
Bull Ratio |
|
---|---|---|---|
Tibco |
$1.5 |
*** |
94% |
Microsoft |
$277.2 |
** |
82% |
Oracle |
$112.2 |
**** |
91% |
IBM |
$158.5 |
*** |
86% |
BEA Systems |
$5.2 |
*** |
92% |
Progress Software |
$1.3 |
***** |
95% |
Among the full-text commentaries on Tibco, I can't find a single negative opinion. The company has no critics brave enough to share their research with us.
The bulls are vociferous, though. Your fellow Fools like to call it a buyout target, thanks to its portfolio of award-winning software and solid management.
What management does:
The second-quarter report was a disappointment, and Tibco stock trades some 16% lower today than it did three months ago. You can see it in the sharp downtick in the latest margins, the revenue parade taking a break, and trailing earnings that beat a retreat for the first time in many months.
2/2006 |
5/2006 |
9/2006 |
11/2006 |
2/2007 |
5/2007 |
|
---|---|---|---|---|---|---|
Gross |
71.7% |
72.7% |
73.0% |
74.2% |
74.3% |
73.9% |
Operating |
12.3% |
13.5% |
13.4% |
13.8% |
14.1% |
13.2% |
Net |
14.9% |
14.8% |
13.8% |
14.1% |
14.7% |
11.6% |
FCF/Revenue |
16.3% |
13.6% |
19.2% |
18.0% |
19.8% |
18.3% |
Growth (YOY) |
2/2006 |
5/2006 |
9/2006 |
11/2006 |
2/2007 |
5/2007 |
---|---|---|---|---|---|---|
Revenue |
9.4% |
8.9% |
12.2% |
16.0% |
15.8% |
12.9% |
Earnings |
44.9% |
19.7% |
5.8% |
0.4% |
14.6% |
(11.5%) |
One Fool says:
It's easy to overlook the fact that the tax man did most of the bottom-line damage last quarter. Tibco got a one-time tax break in the second quarter of 2006, making year-ago comparisons look bad when that benefit wasn't renewed.
That's hardly an operational hiccup, and the stock has been unfairly punished, in my opinion. Tibco remains a brilliant little rodent that drives the big boys up the wall when it snags accolades left and right, but the mouse has yet to do any real damage in the middleware market. Maybe we should think about snagging a few cheap shares today, before Tibco gets the kwan it deserves. I mean love, respect, community ... and the dollars, too. The whole package. The kwan.