Nutrisystem Inc

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NTRI : NASDAQ : Services
$53.05 | %
Today's Range: 52.65 - 54.27
Avg. Daily Volume: 340400.0
03/24/17 - 4:00 PM ET

Financial Analysis


NUTRISYSTEM INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. NUTRISYSTEM INC has weak liquidity. Currently, the Quick Ratio is 0.88 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 35.17% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)108.9590.25
EBITDA ($mil)16.8611.3
EBIT ($mil)13.288.91
Net Income ($mil)8.853.81


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)33.515.51
Total Assets ($mil)154.24129.89
Total Debt ($mil)0.00.0
Equity ($mil)94.5269.93


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin52.6450.81
EBITDA Margin15.4712.52
Operating Margin12.199.87
Sales Turnover3.543.56
Return on Assets22.9920.12
Return on Equity37.5237.38
Debt Q4 FY16 Q4 FY15
Current Ratio1.751.33
Debt/Capital0.00.0
Interest Expense0.00.03
Interest Coverage0.0307.14


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)29.6929.23
Div / share0.180.18
EPS0.290.13
Book value / share3.182.39
Institutional Own % n/a n/a
Avg Daily Volume337689.0233787.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 156.49 for the Internet & Catalog Retail industry and a significant premium compared to the S&P 500 average of 26.33. Conducting a second comparison, its price-to-book ratio of 17.23 indicates a significant premium versus the S&P 500 average of 2.93 and a premium versus the industry average of 17.10. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, NUTRISYSTEM 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
NTRI 46.09 Peers 156.49   NTRI 32.18 Peers 23.00

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

NTRI is trading at a significant discount to its peers.

 

Premium. 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.

NTRI is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NTRI 28.87 Peers 90.70   NTRI 1.41 Peers 2.96

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

NTRI 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.

NTRI 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
NTRI 17.23 Peers 17.10   NTRI 33.70 Peers 156.73

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.

NTRI 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, NTRI 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
NTRI 2.99 Peers 3.82   NTRI 17.90 Peers 26.33

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.

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

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

NTRI significantly trails its peers on the basis of sales growth

 

 

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