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Zumiez Inc.
ZUMZ : NASDAQ : Services

$32.48 0.61 | 1.91%
Today's Range: 31.82 - 33.11
Avg. Daily Volume: 492,200
05/17/13 - 4:00 PM ET

Financial Analysis


ZUMIEZ 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. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. ZUMIEZ INC has strong liquidity. Currently, the Quick Ratio is 1.97 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 11.43% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.



Income Statement Q4 FY12 Q4 FY11
Net Sales ($mil)224.41183.86
EBITDA ($mil)42.736.47
EBIT ($mil)36.431.31
Net Income ($mil)22.8818.74


Balance Sheet Q4 FY12 Q4 FY11
Cash & Equiv. ($mil)103.17172.8
Total Assets ($mil)409.1362.16
Total Debt ($mil)2.270.0
Equity ($mil)303.42272.28


Profitability Q4 FY12 Q4 FY11
Gross Profit Margin41.1241.69
EBITDA Margin19.0219.83
Operating Margin16.2217.03
Sales Turnover1.641.53
Return on Assets10.310.31
Return on Equity13.8913.71
Debt Q4 FY12 Q4 FY11
Current Ratio3.554.56
Debt/Capital0.010.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY12 Q4 FY11
Shares outstanding (mil)30.1131.17
Div / share0.00.0
EPS0.740.6
Book value / share10.088.74
Institutional Own % n/a n/a
Avg Daily Volume501152.0537920.0

Valuation


HOLD. ZUMIEZ INC's P/E ratio indicates a premium compared to an average of 22.57 for the Specialty Retail industry and a premium compared to the S&P 500 average of 18.80. Conducting a second comparison, its price-to-book ratio of 3.11 indicates a premium versus the S&P 500 average of 2.40 and a significant discount versus the industry average of 5.23. The current price-to-sales ratio is similar to the S&P 500 average, but it is above the industry average, indicating a premium. The valuation analysis reveals that, ZUMIEZ INC seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ZUMZ 23.22 Peers 22.57   ZUMZ 14.26 Peers 14.63

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

ZUMZ is trading at a valuation on par with its peers.

 

Average. 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.

ZUMZ is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ZUMZ 16.68 Peers 19.72   ZUMZ 1.01 Peers 1.49

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

ZUMZ is trading at a valuation on par with its peers.

 

Discount. 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.

ZUMZ trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ZUMZ 3.11 Peers 5.23   ZUMZ 13.44 Peers 13.33

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.

ZUMZ is trading at a significant discount to its peers.

 

Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

ZUMZ is expected to keep pace with its peers on the basis of earnings growth.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ZUMZ 1.41 Peers 1.34   ZUMZ 20.42 Peers 8.36

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.

ZUMZ 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.

ZUMZ has a sales growth rate that significantly exceeds its peers.

 

 

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