-0.05 | -0.11%
BOB EVANS FARMS's gross profit margin for the third quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. BOB EVANS FARMS has very weak liquidity. Currently, the Quick Ratio is 0.26 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.41% 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 | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Net Sales ($mil) | 434.44 | 428.34 |
| EBITDA ($mil) | 46.97 | 50.57 |
| EBIT ($mil) | 28.13 | 30.26 |
| Net Income ($mil) | 5.53 | 20.26 |
| Balance Sheet | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 4.43 | 47.94 |
| Total Assets ($mil) | 1137.06 | 1073.3 |
| Total Debt ($mil) | 189.84 | 135.72 |
| Equity ($mil) | 635.82 | 658.27 |
| Profitability | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Gross Profit Margin | 20.78 | 20.36 |
| EBITDA Margin | 10.81 | 11.8 |
| Operating Margin | 6.47 | 7.06 |
| Sales Turnover | 1.47 | 1.55 |
| Return on Assets | 4.65 | 6.44 |
| Return on Equity | 8.32 | 10.5 |
| Debt | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Current Ratio | 0.84 | 0.58 |
| Debt/Capital | 0.23 | 0.17 |
| Interest Expense | 1.25 | 1.88 |
| Interest Coverage | 22.48 | 16.1 |
| Share Data | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Shares outstanding (mil) | 27.88 | 29.07 |
| Div / share | 0.28 | 0.25 |
| EPS | 0.2 | 0.69 |
| Book value / share | 22.81 | 22.64 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 178011.0 | 207807.0 |
BUY. The current P/E ratio indicates a discount compared to an average of 29.81 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 1.98 indicates a discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 7.92. 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, BOB EVANS FARMS proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BOBE 24.43 | Peers 29.81 | BOBE 9.25 | Peers 13.90 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. BOBE is trading at a discount to 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. BOBE is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| BOBE 17.05 | Peers 22.31 | BOBE NM | Peers 1.62 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. BOBE is trading at a discount to its peers. |
Neutral. 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. BOBE's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| BOBE 1.98 | Peers 7.92 | BOBE -19.57 | Peers 62.38 | |||||||||||||||||||||
|
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. BOBE is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, BOBE is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| BOBE 0.76 | Peers 2.82 | BOBE 0.41 | Peers 7.25 | |||||||||||||||||||||
|
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. BOBE 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. BOBE significantly trails its peers on the basis of sales growth |
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