-0.17 | -0.98%
SPARTAN STORES INC's gross profit margin for the third quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. SPARTAN STORES INC has very weak liquidity. Currently, the Quick Ratio is 0.33 which clearly 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 remained unchanged 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.
| Income Statement | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Net Sales ($mil) | 789.88 | 797.24 |
| EBITDA ($mil) | 23.97 | 24.41 |
| EBIT ($mil) | 11.94 | 12.99 |
| Net Income ($mil) | 3.4 | 4.98 |
| Balance Sheet | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 8.96 | 55.06 |
| Total Assets ($mil) | 794.56 | 788.49 |
| Total Debt ($mil) | 170.95 | 179.23 |
| Equity ($mil) | 329.34 | 326.9 |
| Profitability | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Gross Profit Margin | 20.38 | 20.44 |
| EBITDA Margin | 3.03 | 3.06 |
| Operating Margin | 1.51 | 1.63 |
| Sales Turnover | 3.31 | 3.29 |
| Return on Assets | 3.8 | 3.68 |
| Return on Equity | 9.22 | 8.88 |
| Debt | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Current Ratio | 1.2 | 1.14 |
| Debt/Capital | 0.34 | 0.35 |
| Interest Expense | 4.19 | 5.27 |
| Interest Coverage | 2.85 | 2.46 |
| Share Data | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Shares outstanding (mil) | 21.75 | 22.87 |
| Div / share | 0.08 | 0.07 |
| EPS | 0.16 | 0.22 |
| Book value / share | 15.14 | 14.3 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 51810.0 | 68059.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 18.81 for the Food & Staples Retailing industry and a discount compared to the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 1.15 indicates a discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 3.51. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, SPARTAN STORES INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SPTN 12.66 | Peers 18.81 | SPTN 5.37 | Peers 12.05 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. SPTN is trading at a significant discount to 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. SPTN is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| SPTN 11.72 | Peers 16.87 | SPTN NM | Peers 1.82 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. SPTN is trading at a 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. SPTN's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| SPTN 1.15 | Peers 3.51 | SPTN 7.03 | Peers 15.74 | |||||||||||||||||||||
|
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. SPTN 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, SPTN is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| SPTN 0.14 | Peers 0.58 | SPTN 1.51 | Peers 4.69 | |||||||||||||||||||||
|
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. SPTN 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. SPTN significantly trails its peers on the basis of sales growth |
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