-0.19 | -0.87%
BIG 5 SPORTING GOODS CORP's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. BIG 5 SPORTING GOODS CORP has very weak liquidity. Currently, the Quick Ratio is 0.10 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 10.82% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 246.27 | 218.5 |
| EBITDA ($mil) | 17.36 | 5.51 |
| EBIT ($mil) | 12.55 | 0.84 |
| Net Income ($mil) | 7.51 | 0.16 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 5.36 | 5.56 |
| Total Assets ($mil) | 398.38 | 394.79 |
| Total Debt ($mil) | 36.33 | 64.91 |
| Equity ($mil) | 170.4 | 153.76 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 34.63 | 33.0 |
| EBITDA Margin | 7.04 | 2.52 |
| Operating Margin | 5.09 | 0.39 |
| Sales Turnover | 2.43 | 2.28 |
| Return on Assets | 5.59 | 2.29 |
| Return on Equity | 13.07 | 5.89 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 1.87 | 2.02 |
| Debt/Capital | 0.18 | 0.3 |
| Interest Expense | 0.45 | 0.6 |
| Interest Coverage | 27.7 | 1.41 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 21.89 | 21.83 |
| Div / share | 0.1 | 0.08 |
| EPS | 0.34 | 0.01 |
| Book value / share | 7.78 | 7.04 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 300292.0 | 198513.0 |
BUY. The current P/E ratio indicates a discount compared to an average of 21.87 for the Specialty Retail industry and a premium compared to the S&P 500 average of 18.91. Conducting a second comparison, its price-to-book ratio of 2.80 indicates a premium versus the S&P 500 average of 2.42 and a significant discount versus the industry average of 5.44. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, BIG 5 SPORTING GOODS CORP proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BGFV 21.17 | Peers 21.87 | BGFV 9.14 | Peers 14.53 | |||||||||||||||||||||
|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation. BGFV is trading at a valuation on par with its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. BGFV is trading at a significant discount to its peers. |
|||||||||||||||||||||||
| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| BGFV 15.58 | Peers 19.55 | BGFV 0.26 | Peers 1.43 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. BGFV is trading at a discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. BGFV trades at a significant discount to its peers. |
|||||||||||||||||||||||
| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| BGFV 2.80 | Peers 5.44 | BGFV 145.23 | Peers 23.05 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. BGFV is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. BGFV is expected to have an earnings growth rate that significantly exceeds its peers. |
|||||||||||||||||||||||
| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| BGFV 0.49 | Peers 1.32 | BGFV 7.64 | Peers 10.00 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. BGFV is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. BGFV trails its peers on the basis of sales growth |
|||||||||||||||||||||||
