ZUMZ : NASDAQ : Services
$17.63 up 0.06 | 0.34%
Today's Range: 17.36 - 17.77
Avg. Daily Volume: 461,700
09/29/16 - 3:59 PM ET

Financial Analysis


ZUMIEZ 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. ZUMIEZ INC has weak liquidity. Currently, the Quick Ratio is 0.64 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 8.15% 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 ($mil)178.27179.82
EBITDA ($mil)5.9813.16
EBIT ($mil)-1.145.31
Net Income ($mil)-0.843.21


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)52.3480.79
Total Assets ($mil)432.56457.36
Total Debt ($mil)0.00.0
Equity ($mil)280.25305.12


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin34.7636.49
EBITDA Margin3.357.31
Operating Margin-0.642.95
Sales Turnover1.841.81
Return on Assets4.588.57
Return on Equity7.0712.85
Debt Q2 FY16 Q2 FY15
Current Ratio2.052.43
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)24.9327.38
Div / share0.00.0
EPS-0.030.11
Book value / share11.2411.15
Institutional Own % n/a n/a
Avg Daily Volume478648.0474630.0

Valuation


HOLD. The current P/E ratio indicates a premium compared to an average of 21.96 for the Specialty Retail industry and a value on par with the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 1.56 indicates a discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 12.35. 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 23.41 Peers 21.96   ZUMZ 8.31 Peers 14.09

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 18.88 Peers 19.56   ZUMZ NM Peers 1.91

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

ZUMZ is trading at a significant premium 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.

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 1.56 Peers 12.35   ZUMZ -44.03 Peers 0.78

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 0.55 Peers 1.48   ZUMZ -3.78 Peers 7.28

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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