PEP BOYS-MANNY MOE & JACK's gross profit margin for the third quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. PEP BOYS-MANNY MOE & JACK has very weak liquidity. Currently, the Quick Ratio is 0.11 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 unchanged 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||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||517.58||507.04|
|Net Income ($mil)||-1.96||0.97|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||36.43||55.8|
|Total Assets ($mil)||1572.4||1589.25|
|Total Debt ($mil)||231.5||198.5|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||26.57||28.12|
|Return on Assets||-0.25||-0.27|
|Return on Equity||-0.65||-0.72|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||53.38||53.11|
|Div / share||0.0||0.0|
|Book value / share||10.29||10.35|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||283227.0||345473.0|
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.96 indicates a significant discount versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 8.82. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, PEP BOYS-MANNY MOE & JACK proves to trade at a discount to investment alternatives within the industry.
|PBY NM||Peers 25.81||PBY 65.07||Peers 19.21|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
PBY's P/E is negative making this valuation measure meaningless.
Premium. 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.
PBY is trading at a significant premium to its peers.
|PBY 24.58||Peers 22.56||PBY NA||Peers 1.71|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.
Ratio not available.
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.
Ratio not available.
|PBY 0.96||Peers 8.82||PBY 25.00||Peers 16.56|
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.
PBY 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.
PBY is expected to have an earnings growth rate that significantly exceeds its peers.
|PBY 0.25||Peers 1.55||PBY -1.14||Peers 8.45|
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.
PBY 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.
PBY significantly trails its peers on the basis of sales growth
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