However, before the successes and billion dollars of profits, many companies such as Apple Inc., experience turbulent times; periods of unprofitability and unrest in the boardroom. If investors seeking growth are eager to maximize their returns, they must undertake additional risk. Below is one mid-cap and four small cap companies with exposure to risk, some of which have experienced a decline in revenues and earnings.
Synaptics (SYNA) shares are trading near its 52 week high of $39, up 77% from its lows of $22. The company is valued at a premium to its industry. Shares are trading at a high price to earnings ratio of 23 and a price to sales ratio of 2.2. On the contrary, the industry average multiples are 16 and 1.3, respectively. Despite the high valuations, Revenue and earnings declined by 9% and 2%, respectively.
Synaptics has a market cap of $1.3 billion. The company has $282 million in cash on hand and a immaterial debt outstanding of $2.3 million.
Trina Solar Limited (TSL) shares are trading between $8 and $9, down 72% from its 52 week high of just over $30. The company is valued at a discount, trading at a price to earnings ratio of 3.5, a price to sales ratio of 0.31. In comparison, its largest competitors LDK Solar (LDK) and Yingli Green Energy (YGE) at price to earnings ratios of 8.0 and 41.7, respectively. However, both companies are trading slightly cheaper using the price to sales metric of 0.30 and 0.18, respectively.
Trina reported a net loss of $66 million for the most recent quarter, as European nations end their subsidies for solar energy. On the contrary, foresees additional demand in China and southern Europe. The outlook for the company also improves as energy costs continue to rise.
Trina is a small cap company with a market cap of $610 million. The company has almost $700 million of cash on hand and $1 billion of total debt outstanding. The company has a book value per share of over $17.
Xilinx (XLNX) shares are trading cents off of its 52-week high of $37, and 41% off of its 52-week low of $26. The company is trading at a premium to its competitors. Shares are trading at a price to sales ratio of 17.6, a price to sales multiple of 4.3. In comparison its largest competitors Altera Corp. (ALTR) and Lattice Semiconductors (LSCC) are trading at price to earnings multiples of 16.7 and 10.2; shares are also trading at price to sales ratios of 6.1 and 4.2, respectively. Xilinx has a PEG ratio of 2.2, whereas Altera and Lattice have ratios of 1.9 and 3.2.
Xilinx is a medium sized technology firm with a market cap of $9.7 billion. The company has $1.8 billion of cash on hand and only, $900 million total debt outstanding. Xilinx pays an annual dividend of $0.76, which yields 2.1%.
QLogic (QLGC) shares are trading above $17, almost 10% below its 52 week high of $19 and 40% above its 52-week low of $12. The company is trading at a discount to its peers and the industry. Shares are trading at a low price to earnings multiple of 14.6 and a high price to sales ratio of 2.8. In contrast, its competitors Broadcom Corp (BRCM) and Brocade Communications Systems (BRCD) are trading at multiples of 22.4 and 58.6, and price to sales multiples of 2.9 and 1.2, respectively.
QLogic is a small cap semiconductor company, which supplies data storage networking; the company has a market cap of $1.7 billion. The company has no debt outstanding and $400 million of cash on hand.
Tyler Technologies (TYL) shares are trading at its 52-week high of $39, up 86% from its 52-week low of 86%. The company price at a premium; shares are trading a price to earnings multiple of 50, and a price to sales ratio of 3.6, whereas the industry averages are 18.1 and 1.4, respectively. Tyler is a growth company with a PEG ratio of 2.1. Management has grown revenues and earnings at 5% and 12% on a year over year basis.
Tyler provides information management services to local governments and the public sector; the company has a market cap of $1.2 billion. The company has $5.3 million of cash on its balance sheet, and $58 million of debt outstanding.
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