◾ BIG's revenue growth has slightly outpaced the industry average of 7.5%. Since the same quarter one year prior, revenues slightly increased by 1.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
This highlights the reliability of The Street's analysis: revenues slightly increased by 1.1%, which somehow outpaced the industry average of 7.5% in their model.
Alongside The Street's premise of going long a stock breaking out from one day of momentum sits the rest of the company's fundamentals that more resemble the profile of a declining stock. Including the above, 4 of their 5 metrics highlight fundamental negatives:
◾ Net operating cash flow has significantly increased by 69.75% to $102.17 million when compared to the same quarter last year. In addition, BIG LOTS INC has also vastly surpassed the industry average cash flow growth rate of -79.52%.
◾ BIG's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.11 is very weak and demonstrates a lack of ability to pay short-term obligations.
◾ The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Multiline Retail industry. The net income has significantly decreased by 89.6% when compared to the same quarter one year ago, falling from $32.33 million to $3.35 million.
◾ Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Multiline Retail industry and the overall market, BIG LOTS INC's return on equity is below that of both the industry average and the S&P 500.