SEARS HOLDINGS CORP's gross profit margin for the fourth quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. SEARS HOLDINGS CORP 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.
At the same time, stockholders' equity ("net worth") has significantly decreased by 154.68% 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||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||8099.0||10593.0|
|Net Income ($mil)||-159.0||-358.0|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||250.0||1038.0|
|Total Assets ($mil)||13209.0||18261.0|
|Total Debt ($mil)||3800.0||4249.0|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||24.42||23.43|
|Return on Assets||-12.73||-7.47|
|Return on Equity||0.0||-78.49|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||107.0||106.0|
|Div / share||0.0||0.0|
|Book value / share||-8.89||16.41|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||638530.0||1217082.0|
SELL. 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. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.
|SHLD NM||Peers 24.05||SHLD NM||Peers 12.41|
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 18.35||SHLD NA||Peers 2.46|
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 NM||Peers 4.30||SHLD -23.09||Peers 9.96|
Neutral. 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.
SHLD's P/B is negative making this valuation measure meaningless.
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 0.14||Peers 0.89||SHLD -13.79||Peers 5.00|
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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