-0.13 | -0.86%
STAPLES INC's gross profit margin for the fourth quarter of its fiscal year 2012 is essentially unchanged 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. STAPLES INC has weak liquidity. Currently, the Quick Ratio is 0.71 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 12.64% 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.
| Income Statement | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Net Sales ($mil) | 6567.98 | 6374.31 |
| EBITDA ($mil) | 615.3 | 590.24 |
| EBIT ($mil) | 494.74 | 468.82 |
| Net Income ($mil) | 78.06 | 283.59 |
| Balance Sheet | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 1334.3 | 1264.15 |
| Total Assets ($mil) | 12280.01 | 13430.62 |
| Total Debt ($mil) | 1989.1 | 2038.18 |
| Equity ($mil) | 6128.15 | 7015.15 |
| Profitability | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Gross Profit Margin | 27.8 | 28.63 |
| EBITDA Margin | 9.36 | 9.25 |
| Operating Margin | 7.53 | 7.35 |
| Sales Turnover | 1.99 | 1.84 |
| Return on Assets | -1.71 | 7.33 |
| Return on Equity | -2.62 | 14.08 |
| Debt | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Current Ratio | 1.4 | 1.54 |
| Debt/Capital | 0.25 | 0.23 |
| Interest Expense | 38.28 | 41.97 |
| Interest Coverage | 12.92 | 11.17 |
| Share Data | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Shares outstanding (mil) | 669.18 | 695.74 |
| Div / share | 0.11 | 0.1 |
| EPS | 0.14 | 0.41 |
| Book value / share | 9.16 | 10.08 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1.1563599E7 | 1.0714505E7 |
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. To use another comparison, its price-to-book ratio of 1.56 indicates a discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 5.18. 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, STAPLES INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SPLS NM | Peers 22.57 | SPLS 7.84 | Peers 14.79 | |||||||||||||||||||||
|
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. SPLS's P/E is negative making this valuation measure meaningless. |
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. SPLS is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| SPLS 10.06 | Peers 20.13 | SPLS NA | Peers 1.52 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. SPLS is trading at a significant discount to its peers. |
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. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| SPLS 1.56 | Peers 5.18 | SPLS -117.73 | Peers 21.26 | |||||||||||||||||||||
|
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. SPLS is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, SPLS is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
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| SPLS 0.39 | Peers 1.33 | SPLS -1.16 | Peers 10.72 | |||||||||||||||||||||
|
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. SPLS 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. SPLS significantly trails its peers on the basis of sales growth |
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