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. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. 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||734502.0||546582.0|
BUY. SELECT COMFORT CORP's P/E ratio indicates a premium compared to an average of 22.85 for the Specialty Retail industry and a premium compared to the S&P 500 average of 18.92. For additional comparison, its price-to-book ratio of 5.37 indicates a significant premium versus the S&P 500 average of 2.61 and a discount versus the industry average of 6.86. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount.
|SCSS 24.35||Peers 22.85||SCSS 9.94||Peers 18.14|
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 18.44||Peers 19.76||SCSS 6.58||Peers 2.25|
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 5.37||Peers 6.86||SCSS -12.72||Peers 20.01|
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 1.25||Peers 1.37||SCSS 12.16||Peers 6.42|
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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