Family Dollar Stores Inc. Stock Buy Recommendation Reiterated (FDO)
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- FDO's revenue growth has slightly outpaced the industry average of 9.9%. Since the same quarter one year prior, revenues rose by 17.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- FAMILY DOLLAR STORES has improved earnings per share by 5.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FAMILY DOLLAR STORES increased its bottom line by earning $3.58 versus $3.13 in the prior year. This year, the market expects an improvement in earnings ($3.78 versus $3.58).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Multiline Retail industry average. The net income increased by 2.7% when compared to the same quarter one year prior, going from $136.42 million to $140.15 million.
- The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.17 is very weak and demonstrates a lack of ability to pay short-term obligations.
--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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