Staples Inc

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SPLS : NASDAQ : Services
$7.55 -0.04 | -0.53%
Today's Range: 7.47 - 7.67
Avg. Daily Volume: 6,453,200
10/20/16 - 3:59 PM ET

Financial Analysis

STAPLES INC'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. Sales and net income have dropped, underperforming the average competitor within its industry. STAPLES INC has weak liquidity. Currently, the Quick Ratio is 0.76 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 12.48% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)4752.04936.0
EBITDA ($mil)215.0238.0
EBIT ($mil)105.0125.0
Net Income ($mil)-766.036.0

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)775.0611.0
Total Assets ($mil)9483.010326.0
Total Debt ($mil)1222.01108.0
Equity ($mil)4564.05215.0

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin27.1727.55
EBITDA Margin4.524.82
Operating Margin2.212.53
Sales Turnover2.182.11
Return on Assets-4.650.49
Return on Equity-9.660.98
Debt Q2 FY16 Q2 FY15
Current Ratio1.541.58
Interest Expense18.011.0
Interest Coverage5.8311.36

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)650.42643.53
Div / share0.120.12
Book value / share7.028.1
Institutional Own % n/a n/a
Avg Daily Volume6243532.09671106.0


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. For additional comparison, its price-to-book ratio of 1.09 indicates a significant discount versus the S&P 500 average of 2.72 and a significant discount versus the industry average of 12.14. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SPLS NM Peers 21.86   SPLS 7.42 Peers 14.02

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
SPLS 8.50 Peers 19.52   SPLS NA Peers 1.88

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SPLS 1.09 Peers 12.14   SPLS -950.00 Peers 1.19

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SPLS 0.24 Peers 1.49   SPLS -5.06 Peers 7.38

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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