Express, Inc. (EXPR) is a clothing retailer that targets men
and women between the ages of 20 and 30. The stock has fallen significantly in
the past year, and it appears to be a great value play. The stock's chart has a
very significant gap that I am betting on being partially or completely filled.
The following are some multiples on the stock that reflect its value:
Price/Earnings: 6.61
Price/Sales: 0.46
Price/Book: 3.27
PEG (Price to Earnings
Growth): 0.38
How do these compare with peers? The following are the retail
industry's averages for these multiples:
Price/Earnings: 20.44
Price/Sales:
1.73
Price/Book: 6.57
PEG (Price to Earnings Growth): 1.46
EXPR has a Current
Ratio of 1.48, a Quick Ratio of 0.70, and an Interest Coverage of 6.54
(company's operating profits are 6.54 times greater than interest payments).
Therefore, it should not have difficulty in repaying its debt.
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