Big Lots Inc

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BIG : NYSE : Services
$51.35 -1.31 | -2.49%
Today's Range: 51.27 - 53.48
Avg. Daily Volume: 995500.0
02/23/17 - 4:02 PM ET

Financial Analysis


BIG LOTS INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. BIG LOTS INC has very weak liquidity. Currently, the Quick Ratio is 0.08 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 14.46% 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.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)1105.51116.47
EBITDA ($mil)33.129.63
EBIT ($mil)2.81-0.54
Net Income ($mil)1.38-1.51


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)59.7461.54
Total Assets ($mil)1847.241889.3
Total Debt ($mil)362.9334.9
Equity ($mil)545.08637.27


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin39.9839.41
EBITDA Margin2.992.65
Operating Margin0.25-0.05
Sales Turnover2.822.75
Return on Assets8.517.55
Return on Equity28.8722.32
Debt Q3 FY16 Q3 FY15
Current Ratio1.581.74
Debt/Capital0.40.34
Interest Expense1.671.27
Interest Coverage1.69-0.42


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)44.1849.04
Div / share0.210.19
EPS0.03-0.03
Book value / share12.3413.0
Institutional Own % n/a n/a
Avg Daily Volume988799.01058984.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 16.72 for the Multiline Retail industry and a significant discount compared to the S&P 500 average of 26.35. For additional comparison, its price-to-book ratio of 4.18 indicates a premium versus the S&P 500 average of 2.94 and a premium versus the industry average of 3.63. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. The valuation analysis reveals that, BIG LOTS INC seems to be trading at a discount 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
BIG 15.90 Peers 16.72   BIG 7.48 Peers 8.80

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

BIG is trading at a valuation on par with 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.

BIG is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BIG 12.88 Peers 19.71   BIG 0.57 Peers 1.07

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

BIG is trading at a significant discount to 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.

BIG 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
BIG 4.18 Peers 3.63   BIG 20.89 Peers 32.43

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

BIG is trading at a premium to its peers.

 

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

However, BIG is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BIG 0.44 Peers 0.67   BIG 0.10 Peers 11.92

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.

BIG 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.

BIG significantly trails its peers on the basis of sales growth

 

 

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