SEARS HOLDINGS 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 dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. SEARS HOLDINGS CORP has very weak liquidity. Currently, the Quick Ratio is 0.10 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.
At the same time, stockholders' equity ("net worth") has significantly decreased by 93.59% 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 ($mil)||7207.0||8272.0|
|Net Income ($mil)||-548.0||-534.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||326.0||607.0|
|Total Assets ($mil)||15169.0||20209.0|
|Total Debt ($mil)||4940.0||4695.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||22.21||23.34|
|Return on Assets||-12.4||-7.4|
|Return on Equity||-1567.5||-79.82|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||106.5||106.5|
|Div / share||0.0||0.0|
|Book value / share||1.13||17.6|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1287582.0||1407269.0|
SELL. This stock?s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 31.22 indicates a significant premium versus the S&P 500 average of 2.74 and a significant premium versus the industry average of 4.85. 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, SEARS HOLDINGS CORP proves to trade at a premium to investment alternatives within the industry.
|SHLD NM||Peers 26.33||SHLD NM||Peers 14.22|
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.
SHLD's P/E is negative making this valuation measure meaningless.
Neutral. 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.
SHLD's P/CF is negative making the measure meaningless.
|SHLD NM||Peers 19.35||SHLD NA||Peers 3.32|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
SHLD's ratio is negative making this valuation measure meaningless.
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.
|SHLD 31.22||Peers 4.85||SHLD -25.53||Peers -2.95|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
SHLD is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, SHLD is expected to significantly trail its peers on the basis of its earnings growth rate.
|SHLD 0.11||Peers 0.87||SHLD -11.00||Peers 9.59|
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.
SHLD 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.
SHLD significantly trails its peers on the basis of sales growth
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