FINL  The Finish Line Inc.

Exchange

NASDAQ

Sector

Consumer Services

Industry

Clothing/Shoe/Accessory Stores

Market Cap.

421.62M

Vuru Grade

58.74/100

Current Price

$10.49
+0.76 (+7.81%)

Growth Price

$23.63
Undervalued by 125.28%

Stability Price

$20.56
Undervalued by 95.96%

Company Metrics

  • P/E 16.54
  • P/S 0.21
  • P/B 0.86
  • EPS -0.95
  • Cash ROIC 7.82%
  • Cash Ratio 0.41
  • Dividend 0.44 / 4.52%
  • Avg. Vol. 2.21M
  • Shares 40.19M
  • Market Cap. 421.62M

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 The Finish Line, Inc. Stock Popped (Again) Today
Motley Fool - 21 hours ago
Shares of The Finish Line Inc. (NASDAQ:FINL) climbed as much as 14% early Monday, then settled to trade up around 6.3% as of 2 p.m.
The Finish Line, Inc. (FINL): From Top to Bottom - StockNewsJournal
The Finish Line Inc. (FINL) Soars 7.81% on September 25 - Equities.com
Why The Finish Line, Inc. Stock Popped Today
Motley Fool - Sep 22, 2017
Shares of The Finish Line Inc. (NASDAQ:FINL) jumped as much as 11.7% in Friday's early trading, then settled to a 4% gain as of 2:00 p.m.
Finish Line: Wild Trading Doesn't Mean Much - Seeking Alpha
Earnings Reaction History: The Finish Line, Inc., 36.4% Follow-Through ... - Nasdaq
Traders Secrets on Delta Air Lines, Inc. (DAL), The Finish Line, Inc. (FINL)
StockNewsJournal - 2 hours ago
The Finish Line, Inc. (NASDAQ:FINL), maintained return on investment for the last twelve months at -, higher than what Reuters data shows regarding industry's average.
Why Finish Line, Inc. Stock Plunged Today
Motley Fool - Aug 29, 2017
Shares of The Finish Line Inc. (NASDAQ:FINL) were down 19.4% as of 2 p.m. EDT Tuesday, after the footwear retailer announced disappointing preliminary results and a new shareholder-rights plan to stave off a takeover.
Finish Line crashes after slashing its forecast for profits - Business Insider
Finish Line: Simply Mindblowing - Seeking Alpha
The Finish Line, Inc. (FINL) is up on its 30-day high Dextera Surgical Inc ...
NY Stock News - 1 hour ago
The Finish Line, Inc. (NASDAQ:FINL) traded at an unexpectedly high on Friday, posting a 7.81% after which it closed the day' session at $10.49.
Finish Line: Way Down We Go
Seeking Alpha - Sep 6, 2017
The market shows its pessimistic outlook on the company's prospective in the PE and short interest metrics. There is nothing more left except of the following the bearish trend.
Finish Line's stock surges after analyst upgrades on belief a buyout is likely
MarketWatch - Sep 13, 2017
Shares of Finish Line Inc. FINL, +5.53% surged 6.0% in premarket trade Wednesday, after the athletic shoe and apparel retailer was upgraded at Susquehanna Financial, which said it believes a buyout is likely.
Analyst: Finish Line likely to be acquired, become 'DSW of athletic shoes' - Indianapolis Star
Analyst Bets There's a 75% Chance Finish Line Will Sell Out to UK - TheStreet.com
Nike's 'innovation lull' is 'crippling' Finish Line, analyst says
Indianapolis Star - Aug 30, 2017
Finish Line Inc. is having a brutal week that includes a plummeting share price, a reduced profit outlook and measures taken by its board to fend off a possible takeover.
Under Armour: No Worries From Finish Line Debacle - Seeking Alpha
Finish Line Appoints Faisal Masud To Board of Directors
Business Wire (press release) - Sep 22, 2017
INDIANAPOLIS--(BUSINESS WIRE)--Athletic retailer The Finish Line, Inc. (Nasdaq: FINL) announced today that its Board of Directors appointed Faisal Masud as a director of the Company effective September 19, 2017.
Finish Line Cuts FY18 Outlook As Q2 Profit Down, Misses View On Weak Comps - Nasdaq
Finish Line (FINL) Appoints Faisal Masud To Board of Directors - StreetInsider.com
Finish Line Takeover Talk: Why Sports Direct Could Be in Too Deep to Walk Away
Footwear News - Sep 18, 2017
At a time when many signs point to waning momentum across a once-booming athletic industry - speculation that The Finish Line Inc. is on the cusp of a takeover is getting its second wind. Just weeks after the specialty-athletic retailer adopted a ...
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.

$10.49 Current Price

$23.63 Growth Price (DCF)

Undervalued by 125.28%


Growth Rate Assumed by Market: -207.03%


Future Free Cash Flow Growth Rate: -3.8%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$20.56 Stability Price (EPV)

Undervalued by 95.96%


Discount Rate: 15.0%

$4.89 NCA Price

Overvalued by 53.41%

$19.40 Book Price

Undervalued by 84.98%


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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