Select Comfort CorpFind Ratings Reports
SELECT COMFORT CORP'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. SELECT COMFORT CORP has very weak liquidity. Currently, the Quick Ratio is 0.13 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 31.94% 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||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||276.88||275.29|
|Net Income ($mil)||1.42||11.04|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||2.4||88.45|
|Total Assets ($mil)||454.74||475.57|
|Total Debt ($mil)||16.0||0.0|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||66.95||65.99|
|Return on Assets||5.51||17.31|
|Return on Equity||14.42||32.23|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||45.93||51.41|
|Div / share||0.0||0.0|
|Book value / share||3.78||4.97|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||599675.0||893333.0|
HOLD. SELECT COMFORT CORP's P/E ratio indicates a significant premium compared to an average of 22.82 for the Specialty 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 7.21 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.
|SCSS 54.54||Peers 22.82||SCSS 11.68||Peers 15.50|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
SCSS is trading at a significant premium 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.
SCSS is trading at a discount to its peers.
|SCSS 16.04||Peers 20.47||SCSS 1.89||Peers 2.14|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
SCSS is trading at a valuation on par with 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 discount to its peers.
|SCSS 7.21||Peers 13.18||SCSS -67.54||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.
SCSS 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, SCSS is expected to significantly trail its peers on the basis of its earnings growth rate.
|SCSS 1.03||Peers 1.57||SCSS -4.11||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.
SCSS 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.
SCSS significantly trails its peers on the basis of sales growth