ZUMZ : NASDAQ : Services
$19.75 | %
Today's Range: 19.45 - 20.035
Avg. Daily Volume: 458400.0
01/20/17 - 4:00 PM ET

Financial Analysis


ZUMIEZ INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ZUMIEZ INC has weak liquidity. Currently, the Quick Ratio is 0.55 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.37% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)221.39204.32
EBITDA ($mil)23.7622.74
EBIT ($mil)16.9115.22
Net Income ($mil)10.79.65


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)49.1751.13
Total Assets ($mil)453.03441.07
Total Debt ($mil)11.790.0
Equity ($mil)289.43299.53


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin37.537.97
EBITDA Margin10.7211.12
Operating Margin7.647.45
Sales Turnover1.81.86
Return on Assets4.67.51
Return on Equity7.2111.06
Debt Q3 FY16 Q3 FY15
Current Ratio1.972.47
Debt/Capital0.040.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)24.926.68
Div / share0.00.0
EPS0.430.36
Book value / share11.6211.23
Institutional Own % n/a n/a
Avg Daily Volume454317.0524210.0

Valuation


HOLD. The current P/E ratio indicates a premium compared to an average of 22.09 for the Specialty Retail industry and a value on par with the S&P 500 average of 25.41. To use another comparison, its price-to-book ratio of 1.69 indicates a discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 14.08. 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
ZUMZ 24.02 Peers 22.09   ZUMZ 9.69 Peers 13.93

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

ZUMZ is trading at a valuation on par with 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.

ZUMZ 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
ZUMZ 17.59 Peers 20.93   ZUMZ NM Peers 2.02

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

ZUMZ is trading at a valuation on par with 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.

ZUMZ's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ZUMZ 1.69 Peers 14.08   ZUMZ -29.32 Peers -14.80

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.

ZUMZ 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, ZUMZ 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
ZUMZ 0.60 Peers 1.48   ZUMZ -0.64 Peers 7.69

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.

ZUMZ 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.

ZUMZ significantly trails its peers on the basis of sales growth

 

 

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