Mattress Firm Holding Corp

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MFRM : NASDAQ : Services
$63.90 0.00 | 0.00%
Today's Range: 63.84 - 64.05
Avg. Daily Volume: 605,300
08/26/16 - 4:00 PM ET

Financial Analysis


MATTRESS FIRM HOLDING CORP's gross profit margin for the first quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. MATTRESS FIRM HOLDING CORP has very weak liquidity. Currently, the Quick Ratio is 0.16 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.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.79% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)840.51563.67
EBITDA ($mil)3.3742.7
EBIT ($mil)-22.0728.01
Net Income ($mil)-119.165.48


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)1.1410.96
Total Assets ($mil)2516.711641.15
Total Debt ($mil)1466.08770.51
Equity ($mil)457.99445.52


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin34.2238.39
EBITDA Margin0.47.57
Operating Margin-2.634.97
Sales Turnover1.121.24
Return on Assets-2.382.55
Return on Equity-13.129.42
Debt Q1 FY16 Q1 FY15
Current Ratio0.91.04
Debt/Capital0.760.63
Interest Expense23.7710.25
Interest Coverage-0.932.73


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)37.1435.19
Div / share0.00.0
EPS-3.220.15
Book value / share12.3312.66
Institutional Own % n/a n/a
Avg Daily Volume600737.0335685.0

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 5.20 indicates a significant premium versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 13.18. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, MATTRESS FIRM HOLDING CORP 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
MFRM NM Peers 22.82   MFRM 13.87 Peers 15.50

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

MFRM's P/E is negative making this valuation measure meaningless.

 

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.

MFRM 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
MFRM 23.01 Peers 20.47   MFRM NA Peers 2.14

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

MFRM is trading at a significant premium 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MFRM 5.20 Peers 13.18   MFRM -230.83 Peers -14.14

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.

MFRM 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, MFRM 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
MFRM 0.84 Peers 1.57   MFRM 38.44 Peers 8.17

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.

MFRM is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

MFRM has a sales growth rate that significantly exceeds its peers.

 

 

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