"The fortunes of Big 5 Sporting Goods...retailer with 425 stores... waned in the past year, but could turn positive soon," wrote Barron's over the weekend.
"At a recent $12.07, Big 5 has allure once again. Shares trade for just nine times next year's consensus earnings estimate, well below an average of 18 times for peers such as Dick's Sporting Goods (DKS - Get Report), and Hibbert Sports (HIBB - Get Report)." the publication noted.
- The current debt-to-equity ratio, 0.30, 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 0.10 is very weak and demonstrates a lack of ability to pay short-term obligations.
- BGFV, with its decline in revenue, slightly underperformed the industry average of 5.3%. Since the same quarter one year prior, revenues slightly dropped by 6.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Specialty Retail industry and the overall market, BIG 5 SPORTING GOODS CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- The gross profit margin for BIG 5 SPORTING GOODS CORP is currently lower than what is desirable, coming in at 31.43%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.89% trails that of the industry average.
- You can view the full analysis from the report here: BGFV Ratings Report