Select Comfort Corp

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SCSS : NASDAQ : Consumer Goods
$30.9 | %
Today's Range: 30.86 - 32.02
Avg. Daily Volume: 1267000.0
04/28/17 - 4:00 PM ET

Financial Analysis


SELECT COMFORT CORP's gross profit margin for the first quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. SELECT COMFORT CORP has very weak liquidity. Currently, the Quick Ratio is 0.22 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 significantly decreased by 28.33% 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 FY17 Q1 FY16
Net Sales ($mil)393.9352.98
EBITDA ($mil)52.0333.75
EBIT ($mil)35.8319.9
Net Income ($mil)24.4612.97


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)36.4529.52
Total Assets ($mil)462.75481.0
Total Debt ($mil)0.00.0
Equity ($mil)134.15187.18


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin66.6863.16
EBITDA Margin13.29.56
Operating Margin9.15.64
Sales Turnover2.922.53
Return on Assets13.597.21
Return on Equity46.8918.53
Debt Q1 FY17 Q1 FY16
Current Ratio0.590.78
Debt/Capital0.00.0
Interest Expense0.180.11
Interest Coverage196.86187.72


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)41.6846.69
Div / share0.00.0
EPS0.560.27
Book value / share3.224.01
Institutional Own % n/a n/a
Avg Daily Volume1254190.0623955.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.19 for the Specialty Retail industry and a discount compared to the S&P 500 average of 25.27. To use another comparison, its price-to-book ratio of 9.93 indicates a significant premium versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 19.72. 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, SELECT COMFORT 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
SCSS 22.84 Peers 24.19   SCSS NA Peers 15.02

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

SCSS is trading at a valuation on par with its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SCSS 18.53 Peers 19.52   SCSS 0.85 Peers 1.83

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

SCSS is trading at a premium 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.

SCSS 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
SCSS 9.93 Peers 19.72   SCSS 105.88 Peers 40.54

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.

SCSS is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

SCSS is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SCSS 0.99 Peers 1.55   SCSS 11.12 Peers 7.26

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.

SCSS 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.

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

 

 

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