Select Comfort Corp

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SCSS : NASDAQ : Consumer Goods
$31.01 | %
Today's Range: 30.9 - 31.32
Avg. Daily Volume: 995400.0
08/18/17 - 4:00 PM ET

Financial Analysis


SELECT COMFORT CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. SELECT COMFORT CORP has very weak liquidity. Currently, the Quick Ratio is 0.12 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 34.15% 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 FY17 Q2 FY16
Net Sales ($mil)284.67276.88
EBITDA ($mil)11.9116.5
EBIT ($mil)-3.062.4
Net Income ($mil)-0.781.42


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)2.082.4
Total Assets ($mil)440.73454.74
Total Debt ($mil)13.9516.0
Equity ($mil)114.44173.81


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin67.366.95
EBITDA Margin4.185.96
Operating Margin-1.080.87
Sales Turnover3.092.68
Return on Assets13.775.51
Return on Equity53.0514.42
Debt Q2 FY17 Q2 FY16
Current Ratio0.510.72
Debt/Capital0.110.08
Interest Expense0.290.25
Interest Coverage-10.639.55


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)41.0745.93
Div / share0.00.0
EPS-0.020.03
Book value / share2.793.78
Institutional Own % n/a n/a
Avg Daily Volume1032576.01153038.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 21.45 for the Specialty Retail industry and a value on par with the S&P 500 average of 24.31. To use another comparison, its price-to-book ratio of 11.75 indicates a significant premium versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 21.61. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SCSS 24.26 Peers 21.45   SCSS 7.09 Peers 13.40

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

SCSS is trading at a 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 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
SCSS 19.04 Peers 18.42   SCSS 0.90 Peers 1.72

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 significant 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 11.75 Peers 21.61   SCSS 170.00 Peers 10.33

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 1.42   SCSS 11.61 Peers 5.74

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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