Sears Holdings CorpFind Ratings Reports
SEARS HOLDINGS CORP's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. SEARS HOLDINGS CORP has very weak liquidity. Currently, the Quick Ratio is 0.15 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 49.00% 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.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q1 FY17||Q1 FY16|
|Net Sales ($mil)||4301.0||5394.0|
|Net Income ($mil)||244.0||-471.0|
|Balance Sheet||Q1 FY17||Q1 FY16|
|Cash & Equiv. ($mil)||264.0||286.0|
|Total Assets ($mil)||9071.0||11175.0|
|Total Debt ($mil)||4464.0||3922.0|
|Profitability||Q1 FY17||Q1 FY16|
|Gross Profit Margin||21.62||21.82|
|Return on Assets||-16.6||-11.6|
|Return on Equity||0.0||0.0|
|Debt||Q1 FY17||Q1 FY16|
|Share Data||Q1 FY17||Q1 FY16|
|Shares outstanding (mil)||107.3||106.8|
|Div / share||0.0||0.0|
|Book value / share||-32.87||-22.16|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1356381.0||1935601.0|
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.
|SHLD NM||Peers 15.38||SHLD NM||Peers 7.53|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
SHLD's P/E is negative making this valuation measure meaningless.
Neutral. 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.
SHLD's P/CF is negative making the measure meaningless.
|SHLD NM||Peers 13.99||SHLD NA||Peers 3.70|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
SHLD's ratio is negative making this valuation measure meaningless.
Neutral. 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.
Ratio not available.
|SHLD NM||Peers 3.44||SHLD -14.75||Peers 9.75|
Neutral. 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.
SHLD's P/B is negative making this valuation measure meaningless.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, SHLD is expected to significantly trail its peers on the basis of its earnings growth rate.
|SHLD 0.04||Peers 0.62||SHLD -14.66||Peers 2.30|
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.
SHLD 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.
SHLD significantly trails its peers on the basis of sales growth