HSNI : NASDAQ : Services
$52.21 | %
Today's Range: 51.00 - 52.28
Avg. Daily Volume: 323,500
07/22/16 - 4:00 PM ET

Financial Analysis


HSN INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. HSN INC has weak liquidity. Currently, the Quick Ratio is 0.60 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 63.09% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)816.77841.89
EBITDA ($mil)60.3568.26
EBIT ($mil)49.8357.01
Net Income ($mil)28.5933.69


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)46.7977.55
Total Assets ($mil)1246.311303.95
Total Debt ($mil)617.3675.0
Equity ($mil)151.2492.73


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin35.4435.66
EBITDA Margin7.388.1
Operating Margin6.16.77
Sales Turnover2.942.8
Return on Assets13.1613.99
Return on Equity108.52196.8
Debt Q1 FY16 Q1 FY15
Current Ratio1.731.87
Debt/Capital0.80.88
Interest Expense4.172.84
Interest Coverage11.9420.09


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)52.2852.56
Div / share0.3510.35
EPS0.540.63
Book value / share2.891.76
Institutional Own % n/a n/a
Avg Daily Volume321580.0267234.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 223.43 for the Internet & Catalog Retail industry and a discount compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 17.73 indicates a significant premium versus the S&P 500 average of 2.81 and a premium versus the industry average of 17.72. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. The valuation analysis reveals that, HSN 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
HSNI 16.65 Peers 223.43   HSNI 13.44 Peers 31.99

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

HSNI is trading at a significant discount to 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.

HSNI is trading at a significant 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
HSNI 13.71 Peers 139.60   HSNI 2.63 Peers 0.92

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

HSNI is trading at a significant discount to its peers.

 

Premium. 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.

HSNI trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HSNI 17.73 Peers 17.72   HSNI -9.68 Peers 264.09

Average. 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.

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

 

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

However, HSNI 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
HSNI 0.73 Peers 3.56   HSNI 0.49 Peers 23.75

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.

HSNI 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.

HSNI significantly trails its peers on the basis of sales growth

 

 

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