Sears Holdings Corp

Find Ratings Reports
SHLD : NASDAQ : Services
$14.45 up 0.34 | 2.40%
Today's Range: 14.11 - 14.65
Avg. Daily Volume: 571,000
08/29/16 - 10:37 AM ET

Financial Analysis


SEARS HOLDINGS CORP's gross profit margin for the first quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. SEARS HOLDINGS CORP has very weak liquidity. Currently, the Quick Ratio is 0.16 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 99.24% 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 FY16 Q1 FY15
Net Sales ($mil)5394.05882.0
EBITDA ($mil)-334.0-70.0
EBIT ($mil)-429.0-192.0
Net Income ($mil)-471.0-303.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)286.0286.0
Total Assets ($mil)11175.013290.0
Total Debt ($mil)3922.04314.0
Equity ($mil)-2367.0-1188.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin21.8227.39
EBITDA Margin-6.19-1.19
Operating Margin-7.95-3.26
Sales Turnover2.212.2
Return on Assets-11.6-11.91
Return on Equity0.00.0
Debt Q1 FY16 Q1 FY15
Current Ratio1.331.0
Debt/Capital2.521.38
Interest Expense85.090.0
Interest Coverage-5.05-2.13


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)106.8106.6
Div / share0.00.0
EPS-4.41-2.85
Book value / share-22.16-11.14
Institutional Own % n/a n/a
Avg Daily Volume579520.0859429.0

Valuation


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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SHLD NM Peers 18.46   SHLD NM Peers 71.25

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SHLD NM Peers 20.08   SHLD NA Peers 1.24

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SHLD NM Peers 3.87   SHLD 17.60 Peers 16.48

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.

 

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

SHLD is expected to keep pace with its peers on the basis of earnings growth.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SHLD 0.06 Peers 0.70   SHLD -15.56 Peers 17.88

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

 

 

Latest Stock Upgrades/Downgrades