HSNI : NASDAQ : Services
$39.80 up 0.60 | 1.53%
Today's Range: 39.07 - 39.98
Avg. Daily Volume: 376,400
09/30/16 - 4:00 PM ET

Financial Analysis


HSN INC's gross profit margin for the second 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 company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 41.42% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)854.31885.64
EBITDA ($mil)77.3284.82
EBIT ($mil)66.6173.74
Net Income ($mil)26.4541.63


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)54.7674.18
Total Assets ($mil)1236.211299.34
Total Debt ($mil)603.49675.0
Equity ($mil)161.86114.45


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin36.538.0
EBITDA Margin9.059.57
Operating Margin7.88.33
Sales Turnover2.942.83
Return on Assets12.0414.09
Return on Equity92.02160.05
Debt Q2 FY16 Q2 FY15
Current Ratio1.731.93
Debt/Capital0.790.86
Interest Expense4.093.97
Interest Coverage16.3118.55


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)52.2752.78
Div / share0.350.35
EPS0.50.78
Book value / share3.12.17
Institutional Own % n/a n/a
Avg Daily Volume383189.0306191.0

Valuation


HOLD. HSN INC's P/E ratio indicates a significant discount compared to an average of 164.53 for the Internet & Catalog Retail industry and a significant discount compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 12.79 indicates a significant premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 17.77. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, HSN INC proves to trade 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 14.14 Peers 164.53   HSNI 9.43 Peers 29.41

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 12.22 Peers 123.81   HSNI NM Peers 0.83

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HSNI 12.79 Peers 17.77   HSNI -18.37 Peers 641.66

Discount. 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 significant discount to 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 0.57 Peers 3.71   HSNI -1.20 Peers 24.32

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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