FINL  The Finish Line Inc.

Exchange

NASDAQ

Sector

Consumer Services

Industry

Clothing/Shoe/Accessory Stores

Market Cap.

551.89M

Vuru Grade

50.98/100

Current Price

$13.53
+0.22 (+1.65%)

Growth Price

$17.84
Undervalued by 31.83%

Stability Price

$60.33
Undervalued by 345.88%

Company Metrics

  • P/E 13.21
  • P/S 0.29
  • P/B 1.2
  • EPS -0.44
  • Cash ROIC 8.59%
  • Cash Ratio 0.36
  • Dividend 0.44 / 3.4%
  • Avg. Vol. 1.50M
  • Shares 40.79M
  • Market Cap. 551.89M

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

FINL has been one of the worst performing stocks in the retail space over the ...
Seeking Alpha - Mar 27, 2017
Finish Line (NASDAQ:FINL) has been, in my opinion, a third tier company behind names like Nike (NYSE:NKE), and my top choice in the athletic footwear sector, Foot Locker (NYSE:FL).
FBR & Co Analysts Reduce Earnings Estimates for Finish Line Inc (FINL) - The Cerbat Gem
Finish Line Inc Expected to Post FY2019 Earnings of $1.33 Per Share (FINL) - Chaffey Breeze
Finish Line Inc. (FINL) Has Tumbled To A New Low After Q4 Profit Dropped
RTT News - Mar 24, 2017
Finish Line Inc. (FINL) reported fourth quarter EPS of $0.50 Friday morning, down from $0.85 a year ago. Street expectations were for EPS of $0.71.
Earnings Reaction History: The Finish Line, Inc., 33.3% Follow-Through ... - Nasdaq
Finish Line Inc (NASDAQ:FINL) Teams Up With Rich Homie Quan And Adidas For ...
Traders350 - Mar 27, 2017
Finish Line Inc (NASDAQ:FINL), an athletic retailer and public listed Nasdaq stock company has partnered with adidas and artist Rich Homie Quan for exclusive Tubular Shadow colorway release.
Finish Line (FINL) Misses on Q4 Earnings, Stock Plunges 11%
Yahoo Finance - Mar 24, 2017
The Finish Line, Inc. FINL came out with fourth-quarter fiscal 2017 results, wherein adjusted earnings from continuing operations of 50 cents per share slumped 41.2% year over year, significantly lagging the Zacks Consensus Estimate of 70 cents.
Finish Line Inc. Q4 Income Drops 46%
RTT News - Mar 24, 2017
Finish Line Inc. (FINL) released earnings for fourth quarter that dropped compared to the same period last year. The company said its earnings declined to $20.38 million, or $0.50 per share.
Finish Line's stock plunges after profit falls well short of expectations - Morningstar.com
Finish Line swings to fourth-quarter loss on a YOY basis - Myiris.com
Chico's FAS Inc versus The Finish Line Inc Head to Head Compare
CML News - 10 hours ago
These companies have the same star rating so the head-to-head compare will rely on a deep dive into specific metric comparisons. The CML Star Rating is an objective, quantifiable measure of a company's operating and financial condition.
Finish Line (FINL) to Post Q4 Earnings: What's in the Cards?
Yahoo Finance - Mar 17, 2017
The Finish Line, Inc. FINL is scheduled to release fourth-quarter fiscal 2017 results on Mar 24. The big question facing investors is, whether this leading mall-based specialty retailer will be able to deliver a positive earnings surprise in the ...
Price Objective Update on The Finish Line, Inc. (NASDAQ:FINL)
Aiken Advocate - 11 hours ago
Covering equity analysts have a near-term target price of $19.966 on shares of The Finish Line, Inc. (NASDAQ:FINL). This consensus estimate is compiled by Zacks Research using 15 contributing analysts.
Earnings Clues on The Finish Line, Inc. (FINL), Cypress Semiconductor ...
StockNewsJournal - Mar 27, 2017
Investors who are keeping close eye on the stock of The Finish Line, Inc. (NASDAQ:FINL) established that the company was able to keep return on investment at 4.69 in the trailing twelve month while Reuters data showed that industry's average stands at ...
Mid-Morning Market Update: Markets Open Higher; Finish Line Earnings Miss ...
Nasdaq - Mar 24, 2017
Finish Line Inc (NASDAQ: FINL ) reported weaker-than-expected earnings for its fourth quarter. Finish Line reported Q4 adjusted earnings of $0.50 per share on revenue of $557.5 million.
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.

$13.53 Current Price

$17.84 Growth Price (DCF)

Undervalued by 31.83%


Growth Rate Assumed by Market: -69.34%


Future Free Cash Flow Growth Rate: -1.8%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$60.33 Stability Price (EPV)

Undervalued by 345.88%


Discount Rate: 15.0%

$5.67 NCA Price

Overvalued by 58.06%

$19.73 Book Price

Undervalued by 45.80%


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 $8.59 of cash for every $100 invested.
Figures in USD. Fiscal year ends in February
20122013201420152016
Free Cash Flow 65.06M -93,000.00 37.32M 13.72M 33.26M
divided by
Invested Capital 265.32M 345.40M 402.20M 502.79M 516.87M
Cash ROIC 24.52% -0.03% 9.28% 2.73% 6.44%

Shrinking Return on Equity over the past 5 years

FINL has been shrinking returns with capital that shareholders have invested. This is a negative sign and demonstrates that both the business and management performance are weakening over time.

FINL has generated $11.95 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in February
20122013201420152016
Net Income 84.80M 69.18M 75.05M 79.74M 21.80M
divided by
Stockholders' Equity 529.54M 524.86M 582.18M 589.64M 527.64M
Return on Equity 16.01% 13.18% 12.89% 13.52% 4.13%

Good Business Performance over the past 10 years

It's likely FINL has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is FINL has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

FINL has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in February
2007200820092010201120122013201420152016
Free Cash Flow -15.01M 11.10M 44.67M 149.00M 89.49M 65.06M -93,000.00 37.32M 13.72M 33.26M

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
2007200820092010201120122013201420152016
Cash 62.86M 72.90M 115.88M 234.51M 299.32M 307.49M 226.98M 229.08M 149.57M 79.50M
Current Assets 380.38M 381.81M 387.08M 443.61M 509.68M 552.75M 491.69M 566.96M 530.66M 521.35M
Total Assets 656.64M 643.05M 598.73M 610.27M 664.85M 711.50M 706.42M 824.95M 849.86M 817.55M
Current Liabilities 142.89M 147.06M 107.84M 114.94M 126.42M 138.68M 134.04M 193.67M 197.50M 221.19M
Total Liabilities 207.36M 222.18M 174.34M 168.12M 174.60M 181.96M 181.56M 242.76M 260.21M 289.90M
Stockholder' Equity 449.28M 420.87M 424.39M 442.15M 490.25M 529.54M 524.86M 582.18M 589.64M 527.64M
Current Ratio 2.66 2.60 3.59 3.86 4.03 3.99 3.67 2.93 2.69 2.36
TL-to-TA 0.32 0.35 0.29 0.28 0.26 0.26 0.26 0.29 0.31 0.35

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
2007200820092010201120122013201420152016
Retained Earnings 347.28M 284.94M 283.76M 312.31M 372.05M 445.88M 504.88M 567.63M 633.91M 639.30M
Retained Earnings Growth - -17.95% -0.41% 10.06% 19.13% 19.85% 13.23% 12.43% 11.68% 0.85%

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 $2.76 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in February
2007200820092010201120122013201420152016
Net Income 32.36M -60.81M 3.76M 35.67M 68.83M 84.80M 69.18M 75.05M 79.74M 21.80M
divided by
Revenue 1.34B 1.28B 1.26B 1.17B 1.23B 1.37B 1.44B 1.67B 1.82B 1.89B
Net Profit Margin 2.42% -4.76% 0.30% 3.04% 5.60% 6.19% 4.79% 4.49% 4.38% 1.15%

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.

$38.41 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
2007200820092010201120122013201420152016
Gross Profit 400.87M 371.44M 375.95M 378.86M 413.93M 1.37B 484.44M 547.44M 583.80M 582.99M
divided by
Revenue 1.34B 1.28B 1.26B 1.17B 1.23B 1.37B 1.44B 1.67B 1.82B 1.89B
Gross Margin 29.96% 29.08% 29.78% 32.31% 33.68% 100.00% 33.56% 32.77% 32.07% 30.86%

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.

149.75% 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
2007200820092010201120122013201420152016
Capital Expenditure 73.99M 29.41M 14.73M 8.45M 19.09M 29.68M 81.59M 81.67M 88.09M 66.13M
divided by
Net Income 32.36M -60.81M 3.76M 35.67M 68.83M 84.80M 69.18M 75.05M 79.74M 21.80M
Capital Expenditure Ratio 228.63% -48.35% 392.07% 23.70% 27.73% 35.00% 117.93% 108.82% 110.46% 303.38%

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
2007200820092010201120122013201420152016
Dividend Paid 4.76M 2.38M 3.29M 6.61M 8.60M 10.51M - - - -
divided by
Shares Outstanding 47.59M 47.14M 54.49M 54.60M 52.98M 52.82M 50.49M 48.70M 47.27M 44.79M
Dividend Paid Per Share 0.10 0.05 0.06 0.12 0.16 0.20 - - - -
Price at Year End 2.19 5.20 12.15 17.17 19.29 18.63 28.15 24.29 18.06 18.81
Dividend Yield 4.57% 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
2007200820092010201120122013201420152016
Shares Outstanding 47.59M 47.14M 54.49M 54.60M 52.98M 52.82M 50.49M 48.70M 47.27M 44.79M
Stock Bought Back - 0.96% -13.48% -0.20% 3.05% 0.30% 4.61% 3.68% 3.03% 5.54%
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