FINL  The Finish Line Inc.

Exchange

NASDAQ

Sector

Consumer Services

Industry

Clothing/Shoe/Accessory Stores

Market Cap.

547.19M

Vuru Grade

58.74/100

Current Price

$13.63
+0.48 (+3.65%)

Growth Price

$23.66
Undervalued by 73.58%

Stability Price

$20.58
Undervalued by 50.99%

Company Metrics

  • P/E 17.15
  • P/S 0.29
  • P/B 1.17
  • EPS -0.49
  • Cash ROIC 7.82%
  • Cash Ratio 0.41
  • Dividend 0.44 / 3.13 %
  • Avg. Vol. 1.57M
  • Shares 40.15M
  • Market Cap. 547.19M

Company Description

The Finish Line, Inc., together with its subsidiaries, operates as a mall-based specialty retailer in the United States. It operates Finish Line stores that offer performance and athletic casual footwear, apparel, and accessories for men, women, and kids. The company also sells merchandise through its Web site, finishline.com. As of April 15, 2011, it operated 660 Finish Line stores in 47 states. ... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Why Investors remained confident on The Finish Line, Inc. (FINL), Dynegy Inc ...
StockNewsJournal - 13 hours ago
ROI deals with the invested cash in the company and the return the investor realize on that money based on the net profit of the business.
Finish Line Inc. (FINL) hit his 1-Year Low price on 06/21/17 - TopChronicle
The Finish Line, Inc. (FINL) Stake Reduced by Nationwide Fund Advisors - BNB Daily (blog)
Finish Line: Improving Performance And Potential Acquisition Target
Seeking Alpha - Jun 26, 2017
Frankly, these results were not special; however, the company maintained its annual EPS guidance of $1.12-1.23. Given the noise at Nike (NYSE:NKE) potentially partnering with Amazon (NASDAQ:AMZN) and a slightly ... Though inventories did grow 5% y/y ...
Why Investors remained confident on AbbVie Inc. (ABBV), The Finish Line, Inc ... - StockNewsJournal
Finish Line Inc (NASDAQ:FINL) Institutional Investor Sentiment Analysis - Newburgh Gazette
Tale of the Ticker: Finish Line Inc (FINL) Moves on Volume
Clayton News - 9 hours ago
Shares of Finish Line Inc (FINL) are moving on volatility today 2.28% or 0.30 from the open. The NASDAQ listed company saw a recent bid of 13.45 and 107118 shares have traded hands in the session.
Is there Value in The Finish Line, Inc. (NasdaqGS:FINL)?
Clayton News - 2 hours ago
Developed by James O'Shaughnessy, the Value Composite score uses six valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, price to sales and shareholder yield.
Quant Signal Update on The Finish Line, Inc. (NasdaqGS:FINL)
Rockville Register - 6 hours ago
At the time of writing, The Finish Line, Inc. (NasdaqGS:FINL) has a Piotroski F-Score of 4. The F-Score may help discover companies with strengthening balance sheets.
Hot Stocks Among Investors: The Finish Line, Inc. (FINL), the Rubicon Project ...
Post Analyst - 15 hours ago
The Finish Line, Inc. has a consensus hold rating from 18 Wall Street analysts, and the number of shares currently sold short amount to at least 25.36% of shares outstanding.
The Finish Line, Inc. (NASDAQ:FINL) Sees Light Trading Volume with 150K Shares ...
Highlight Press - 15 hours ago
(NASDAQ:FINL) shares saw light trading volume with 150K shares changing hands by the end of trading on Tuesday. Trading volume was down 91.14% under the stocks average daily volume.
Sports retailer stocks fall as Hibbett posts gloomy outlook
WTOP - Jul 24, 2017
Analysts expected the company to post earnings of 15 cents per share for the quarter. Shares of Hibbett Sports Inc. fell $6.60 to $13.10 on Monday.
Hibbett Sports slumps after warning of 'challenging' sales - Reuters
Stock Alert and Holding Pattern: The Finish Line Inc Stock Volatility Hits An ...
CML News - Jul 21, 2017
Before we cover the full analysis we make a quick alert here that The Finish Line Inc (NASDAQ:FINL) has seen its stock price move at an amplified level.
Finish Line Inc (FINL) Shares Moving On Volume
Evergreen Caller - Jul 24, 2017
Shares of Finish Line Inc (FINL) have seen the needle move -5.69% or -0.80 in the most recent session. The NASDAQ listed company saw a recent bid of $13.26 on 668491 volume.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for FINL to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate FINL's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$13.63 Current Price

$23.66 Growth Price (DCF)

Undervalued by 73.58%


Growth Rate Assumed by Market: -55.42%


Future Free Cash Flow Growth Rate: -3.8%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$20.58 Stability Price (EPV)

Undervalued by 50.99%


Discount Rate: 15.0%

$4.89 NCA Price

Overvalued by 64.10%

$19.40 Book Price

Undervalued by 42.37%


Poor Cash Return on Invested Capital over the past 5 years

FINL has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

FINL has only created $7.82 of cash for every $100 invested.
Figures in USD. Fiscal year ends in February
20132014201520162017
Free Cash Flow -93,000.00 37.32M 13.72M 33.26M 89.76M
divided by
Invested Capital 345.40M 402.20M 502.79M 516.87M 433.64M
Cash ROIC -0.03% 9.28% 2.73% 6.44% 20.70%

Poor Return on Equity over the past 5 years

FINL has shown an inability to deliver strong results for shareholders. This could be due to poor management, FINL operating in a highly competitive industry, or having a weak business in general.

FINL has only generated $7.94 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in February
20132014201520162017
Net Income 69.18M 75.05M 79.74M 21.80M -18.21M
divided by
Stockholders' Equity 524.86M 582.18M 589.64M 527.64M 451.50M
Return on Equity 13.18% 12.89% 13.52% 4.13% -4.03%

Excellent Business Performance over the past 10 years

FINL has been able to maintain profitability in good times and bad. This could mean FINL has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

FINL has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in February
2008200920102011201220132014201520162017
Free Cash Flow 11.10M 44.67M 149.00M 89.49M 65.06M -93,000.00 37.32M 13.72M 33.26M 89.76M

Good Balance Sheet

FINL's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in February
2008200920102011201220132014201520162017
Cash 72.90M 115.88M 234.51M 299.32M 307.49M 226.98M 229.08M 149.57M 79.50M 90.86M
Current Assets 381.81M 387.08M 443.61M 509.68M 552.75M 491.69M 566.96M 530.66M 521.35M 491.41M
Total Assets 643.05M 598.73M 610.27M 664.85M 711.50M 706.42M 824.95M 849.86M 817.55M 746.47M
Current Liabilities 147.06M 107.84M 114.94M 126.42M 138.68M 134.04M 193.67M 197.50M 221.19M 221.97M
Total Liabilities 222.18M 174.34M 168.12M 174.60M 181.96M 181.56M 242.76M 260.21M 289.90M 294.97M
Stockholder' Equity 420.87M 424.39M 442.15M 490.25M 529.54M 524.86M 582.18M 589.64M 527.64M 451.50M
Current Ratio 2.60 3.59 3.86 4.03 3.99 3.67 2.93 2.69 2.36 2.21
TL-to-TA 0.35 0.29 0.28 0.26 0.26 0.26 0.29 0.31 0.35 0.40

Consistent Reinvestment of Profits over the past 10 years

FINL has consistently retained profits. This may put FINL in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, FINL can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in February
2008200920102011201220132014201520162017
Retained Earnings 284.94M 283.76M 312.31M 372.05M 445.88M 504.88M 567.63M 633.91M 639.30M 604.14M
Retained Earnings Growth - -0.41% 10.06% 19.13% 19.85% 13.23% 12.43% 11.68% 0.85% -5.50%

Highly Competitive Industry over the past 10 years

It's likely that FINL is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely FINL invests heavily in R&D and Sales, General & Administrative expenses.

Only $2.42 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in February
2008200920102011201220132014201520162017
Net Income -60.81M 3.76M 35.67M 68.83M 84.80M 69.18M 75.05M 79.74M 21.80M -18.21M
divided by
Revenue 1.28B 1.26B 1.17B 1.23B 1.37B 1.44B 1.67B 1.82B 1.89B 1.84B
Net Profit Margin -4.76% 0.30% 3.04% 5.60% 6.19% 4.79% 4.49% 4.38% 1.15% -0.99%

Inconsistent Gross Profit Margins over the past 10 years

FINL has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$38.39 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in February
2008200920102011201220132014201520162017
Gross Profit 371.44M 375.95M 378.86M 413.93M 1.37B 484.44M 547.44M 583.80M 582.99M 548.40M
divided by
Revenue 1.28B 1.26B 1.17B 1.23B 1.37B 1.44B 1.67B 1.82B 1.89B 1.84B
Gross Margin 29.08% 29.78% 32.31% 33.68% 100.00% 33.56% 32.77% 32.07% 30.86% 29.73%

High Capital Intensity over the past 10 years

FINL spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

139.89% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in February
2008200920102011201220132014201520162017
Capital Expenditure 29.41M 14.73M 8.45M 19.09M 29.68M 81.59M 81.67M 88.09M 66.13M 74.78M
divided by
Net Income -60.81M 3.76M 35.67M 68.83M 84.80M 69.18M 75.05M 79.74M 21.80M -18.21M
Capital Expenditure Ratio -48.35% 392.07% 23.70% 27.73% 35.00% 117.93% 108.82% 110.46% 303.38% -410.72%

Inconsistent Dividend History over the past 10 years

FINL has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in February
2008200920102011201220132014201520162017
Dividend Paid 2.38M 3.29M 6.61M 8.60M 10.51M - - - - -
divided by
Shares Outstanding 47.14M 54.49M 54.60M 52.98M 52.82M 50.49M 48.70M 47.27M 44.79M 41.37M
Dividend Paid Per Share 0.05 0.06 0.12 0.16 0.20 - - - - -
Price at Year End 5.20 12.15 17.17 19.29 18.63 28.15 24.29 18.06 18.81 14.50
Dividend Yield 0.97% 0.50% 0.71% 0.84% 1.07% - - - - -

Strong History of Stock Buybacks over the past 10 years

FINL has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in February
2008200920102011201220132014201520162017
Shares Outstanding 47.14M 54.49M 54.60M 52.98M 52.82M 50.49M 48.70M 47.27M 44.79M 41.37M
Stock Bought Back - -13.48% -0.20% 3.05% 0.30% 4.61% 3.68% 3.03% 5.54% 8.27%
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