Staples Inc

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SPLS : NASDAQ : Services
$9.77 | %
Today's Range: 9.68 - 9.86
Avg. Daily Volume: 6848000.0
04/28/17 - 4:00 PM ET

Financial Analysis


STAPLES INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. STAPLES INC has weak liquidity. Currently, the Quick Ratio is 0.73 which 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 31.39% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)4560.05268.0
EBITDA ($mil)330.0355.0
EBIT ($mil)227.0243.0
Net Income ($mil)-952.086.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)1137.0825.0
Total Assets ($mil)8271.010172.0
Total Debt ($mil)1048.01035.0
Equity ($mil)3688.05376.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin29.0428.06
EBITDA Margin7.236.73
Operating Margin4.984.61
Sales Turnover2.212.07
Return on Assets-18.093.72
Return on Equity-12.447.04
Debt Q4 FY16 Q4 FY15
Current Ratio1.431.57
Debt/Capital0.220.16
Interest Expense10.011.0
Interest Coverage22.722.09


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)652.47645.72
Div / share0.120.12
EPS-0.940.13
Book value / share5.658.33
Institutional Own % n/a n/a
Avg Daily Volume6867522.07536513.0

Valuation


HOLD. 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. To use another comparison, its price-to-book ratio of 1.72 indicates a discount versus the S&P 500 average of 2.99 and a significant discount versus the industry average of 18.58. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, STAPLES INC 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
SPLS NM Peers 23.42   SPLS 6.80 Peers 14.39

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.

SPLS's P/E is negative making this valuation measure meaningless.

 

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.

SPLS 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
SPLS 11.01 Peers 19.05   SPLS NA Peers 1.81

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SPLS is trading at a significant discount to its peers.

 

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
SPLS 1.72 Peers 18.58   SPLS -220.33 Peers 41.21

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.

SPLS 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, SPLS is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SPLS 0.35 Peers 1.51   SPLS -13.36 Peers 7.24

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.

SPLS 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.

SPLS significantly trails its peers on the basis of sales growth

 

 

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