MATTRESS FIRM HOLDING CORP's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. MATTRESS FIRM HOLDING CORP has very weak liquidity. Currently, the Quick Ratio is 0.28 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 20.99% 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.
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|Income Statement||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||411.04||303.98|
|Net Income ($mil)||14.3||14.12|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||18.14||6.37|
|Total Assets ($mil)||964.84||750.4|
|Total Debt ($mil)||301.86||232.66|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||42.33||42.47|
|Return on Assets||5.05||6.15|
|Return on Equity||13.58||15.55|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||34.17||33.87|
|Div / share||0.0||0.0|
|Book value / share||10.52||8.77|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||222180.0||213189.0|
BUY. MATTRESS FIRM HOLDING CORP's P/E ratio indicates a significant premium compared to an average of 22.80 for the Specialty Retail industry and a significant premium compared to the S&P 500 average of 19.49. For additional comparison, its price-to-book ratio of 5.78 indicates a significant premium versus the S&P 500 average of 2.70 and a discount versus the industry average of 6.59. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. The valuation analysis reveals that, MATTRESS FIRM HOLDING CORP seems to be trading at a premium to investment alternatives within the industry.
|MFRM 43.12||Peers 22.80||MFRM 17.14||Peers 18.04|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
MFRM is trading at a significant premium to its peers.
Average. 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.
MFRM is trading at a valuation on par to its peers.
|MFRM 22.52||Peers 19.22||MFRM 1.17||Peers 1.89|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
MFRM is trading at a significant premium 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.
MFRM trades at a significant discount to its peers.
|MFRM 5.78||Peers 6.59||MFRM 4.44||Peers 20.00|
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.
MFRM is trading at a discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, MFRM is expected to significantly trail its peers on the basis of its earnings growth rate.
|MFRM 1.50||Peers 1.34||MFRM 23.88||Peers 6.38|
Premium. 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.
MFRM is trading at a premium to its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
MFRM has a sales growth rate that significantly exceeds its peers.
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