Overstock.com Inc

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OSTK : NASDAQ : Services
$15.43 | %
Today's Range: 15.25 - 15.56
Avg. Daily Volume: 88,400
08/26/16 - 4:00 PM ET

Financial Analysis


OVERSTOCK.COM 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. 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 22.79% 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 ($mil)418.54388.01
EBITDA ($mil)0.68.92
EBIT ($mil)-5.513.08
Net Income ($mil)-0.91.67


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)123.02106.23
Total Assets ($mil)414.82320.77
Total Debt ($mil)42.840.5
Equity ($mil)163.53133.18


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin18.2519.0
EBITDA Margin0.142.29
Operating Margin-1.320.79
Sales Turnover4.115.02
Return on Assets2.542.3
Return on Equity6.455.54
Debt Q2 FY16 Q2 FY15
Current Ratio0.961.02
Debt/Capital0.210.0
Interest Expense0.010.01
Interest Coverage-1101.8385.25


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)25.3524.33
Div / share0.00.0
EPS-0.040.07
Book value / share6.455.47
Institutional Own % n/a n/a
Avg Daily Volume95778.096718.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 154.94 for the Internet & Catalog Retail industry and a significant premium compared to the S&P 500 average of 25.30. To use another comparison, its price-to-book ratio of 2.41 indicates a discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 16.87. 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 37.88 Peers 154.94   OSTK 5.07 Peers 28.15

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 121.60   OSTK 0.11 Peers 0.61

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 2.41 Peers 16.87   OSTK 32.25 Peers 666.12

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 0.23 Peers 3.57   OSTK 5.83 Peers 25.28

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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