SELECT COMFORT CORP's gross profit margin for the third 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. SELECT COMFORT CORP has weak liquidity. Currently, the Quick Ratio is 0.81 which 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 10.09% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||323.37||263.69|
|Net Income ($mil)||23.55||20.26|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||133.74||138.71|
|Total Assets ($mil)||474.85||389.85|
|Total Debt ($mil)||0.0||0.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||64.62||66.16|
|Return on Assets||11.67||16.96|
|Return on Equity||22.26||29.24|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||53.29||55.24|
|Div / share||0.0||0.0|
|Book value / share||4.67||4.09|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||775233.0||751083.0|
BUY. SELECT COMFORT CORP's P/E ratio indicates a premium compared to an average of 27.38 for the Specialty Retail industry and a premium compared to the S&P 500 average of 19.47. To use another comparison, its price-to-book ratio of 6.18 indicates a significant premium versus the S&P 500 average of 2.75 and a significant discount versus the industry average of 8.02. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount.
|SCSS 28.06||Peers 27.38||SCSS 11.45||Peers 19.77|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
SCSS 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.
SCSS is trading at a significant discount to its peers.
|SCSS 20.64||Peers 22.48||SCSS 6.07||Peers 2.46|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
SCSS is trading at a premium to its peers.
Premium. 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.
SCSS trades at a significant premium to its peers.
|SCSS 6.18||Peers 8.02||SCSS -12.72||Peers 2.19|
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.
SCSS 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, SCSS is expected to significantly trail its peers on the basis of its earnings growth rate.
|SCSS 1.45||Peers 1.49||SCSS 12.16||Peers 8.20|
Average. 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.
SCSS is trading at a valuation on par with its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
SCSS has a sales growth rate that significantly exceeds its peers.
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