Staples Inc. Stock Hold Recommendation Reiterated (SPLS)
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- SPLS's revenue growth trails the industry average of 26.2%. Since the same quarter one year prior, revenues slightly increased by 3.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.71 is somewhat weak and could be cause for future problems.
- STAPLES INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, STAPLES INC swung to a loss, reporting -$0.25 versus $1.41 in the prior year. This year, the market expects an improvement in earnings ($1.33 versus -$0.25).
- The gross profit margin for STAPLES INC is currently lower than what is desirable, coming in at 27.80%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.18% trails that of the industry average.
- Net operating cash flow has decreased to $324.44 million or 32.52% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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