Overstock.com Inc

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OSTK : NASDAQ : Services
$16.15 -0.35 | -2.12%
Today's Range: 16.05 - 16.5
Avg. Daily Volume: 56000.0
01/19/17 - 4:00 PM ET

Financial Analysis


OVERSTOCK.COM 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 increased, the net income has decreased, representing a decrease to the bottom line. OVERSTOCK.COM INC has weak liquidity. Currently, the Quick Ratio is 0.70 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.

During the same period, stockholders' equity ("net worth") has increased by 8.34% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)441.56391.21
EBITDA ($mil)3.344.0
EBIT ($mil)-5.05-2.62
Net Income ($mil)-3.1-2.07


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)124.981.98
Total Assets ($mil)424.28331.81
Total Debt ($mil)49.820.0
Equity ($mil)161.62149.18


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin18.0718.54
EBITDA Margin0.751.02
Operating Margin-1.14-0.67
Sales Turnover4.134.97
Return on Assets2.241.11
Return on Equity5.92.47
Debt Q3 FY16 Q3 FY15
Current Ratio0.940.86
Debt/Capital0.240.0
Interest Expense0.210.19
Interest Coverage-23.81-14.07


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)25.3825.23
Div / share0.00.0
EPS-0.12-0.08
Book value / share6.375.91
Institutional Own % n/a n/a
Avg Daily Volume54108.063734.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 167.36 for the Internet & Catalog Retail industry and a significant premium compared to the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 2.62 indicates valuation on par with the S&P 500 average of 2.84 and a significant discount versus the industry average of 17.54. 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, OVERSTOCK.COM 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
OSTK 45.14 Peers 167.36   OSTK 5.58 Peers 24.49

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

OSTK 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.

OSTK 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
OSTK NM Peers 1561.42   OSTK 0.21 Peers 1.56

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

OSTK 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.

OSTK 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
OSTK 2.62 Peers 17.54   OSTK 131.25 Peers 288.10

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.

OSTK 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, OSTK 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
OSTK 0.24 Peers 3.73   OSTK 6.43 Peers 26.52

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.

OSTK 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.

OSTK significantly trails its peers on the basis of sales growth

 

 

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