FINL  The Finish Line Inc.

Exchange

NASDAQ

Sector

Consumer Services

Industry

Clothing/Shoe/Accessory Stores

Market Cap.

695.20M

Vuru Grade

50.98/100

Current Price

$17.14
+0.49 (+2.94%)

Growth Price

$17.94
Fairly valued

Stability Price

$60.67
Undervalued by 253.97%

Company Metrics

  • P/E 13.21
  • P/S 0.35
  • P/B 1.45
  • EPS -0.11
  • Cash ROIC 8.59%
  • Cash Ratio 0.36
  • Dividend 0.44 / 2.55%
  • Avg. Vol. 1.48M
  • Shares 40.56M
  • Market Cap. 695.20M

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

The Finish Line, Inc. (FINL) Ex-Dividend Date Scheduled for February 22, 2017
Nasdaq - Feb 21, 2017
The Finish Line, Inc. ( FINL ) will begin trading ex-dividend on February 22, 2017. A cash dividend payment of $0.11 per share is scheduled to be paid on March 13, 2017.
The The Finish Line Inc. (FINL) Upgrade by the Zacks Investment Research to Hold - DailyQuint
The Finish Line, Inc. (NASDAQ:FINL) 50-day MA At $17.51 - Equities Focus
The Finish Line Inc. (FINL) Settles Into New 52-Week Low on February 24 Session
Equities.com - 22 hours ago
Shares of The Finish Line Inc. (FINL) sank into a new 52-week low yesterday, and could be a company to watch at the open. The company's stock fell to as low as $16.36 yesterday after opening at $16.62.
Why Finish Line Inc. Shares Popped Today
Motley Fool - Jun 24, 2016
What: Shares of Finish Line Inc. (NASDAQ:FINL) jumped today after its first-quarter earnings report blew past expectations.
Finish Line Rallies After Adidas Sales Fuel Results - Bloomberg
Why Finish Line Inc (FINL) Stock Is Soaring Today - Investorplace.com
Why Finish Line Inc. Shares Jumped 11% in June
Motley Fool - Jul 12, 2016
While not groundbreaking, these results exceeded investor expectations enough to boost Finish Line stock by 22% during the trading session after earnings were released.
The Finish Line Inc. (FINL) Moves Lower on Volume Spike for February 13
Equities.com - Feb 13, 2017
The Finish Line Inc. (FINL) traded on unusually high volume on Feb. 13, as the stock lost 0.28% to close at $17.89. On the day, The Finish Line Inc. saw 1.95 million shares trade hands on 12,605 trades. Considering that the stock averages only a daily ...
Shares of The Finish Line, Inc. (FINL) Sees Large Inflow of Net Money Flow - Highland Mirror
Barrow Hanley Mewhinney & Strauss LLC Has $3256000 Stake in The Finish Line ... - The Cerbat Gem
The Finish Line Inc. (FINL) Moves Higher on Volume Spike for February 09
Equities.com - Feb 9, 2017
The Finish Line Inc. (FINL) traded on unusually high volume on Feb. 09, as the stock gained 3.2% to close at $17.72. On the day, The Finish Line Inc. saw 1.98 million shares trade hands on 11,286 trades. Considering that the stock averages only a daily ...
The Finish Line, Inc. (FINL) Stake Lowered by Dynamic Capital Management Ltd - The Cerbat Gem
The Finish Line Inc. (FINL) Settles Into New 52-Week Low on January 31 Session
Equities.com - Jan 31, 2017
Shares of The Finish Line Inc. (FINL) sank into a new 52-week low yesterday, and could be a company to watch at the open. The company's stock fell to as low as $16.55 yesterday after opening at $16.89.
The Finish Line: A Strong Turnaround Candidate For 2017
Seeking Alpha - Jan 30, 2017
The Finish Line, Inc. (NASDAQ: FINL) got punished recently due to negative investor sentiment resulting from the disappointing performance of the retail sector.
Finish Line Bolts From JackRabbit In Sale To PE Firm - Law360 (subscription)
Citigroup Inc. Trims The Finish Line, Inc. (FINL) Target Price to $19.00 - The Cerbat Gem
Option Trading: The Finish Line Inc (NASDAQ:FINL) Winning Short Put Spreads ...
CML News - 35 minutes ago
We're going to look at a wonderful result using short put spreads for The Finish Line Inc by pinpointing earnings risk, and then navigating around it.
The FBR & Co Weighs in on The Finish Line Inc.'s FY2017 Earnings (FINL)
DailyQuint - 10 hours ago
The Finish Line Inc. (NASDAQ:FINL) - Stock analysts at FBR & Co decreased their FY2017 earnings per share (EPS) estimates for shares of The Finish Line in a note issued to investors on Thursday.
Stock's Earning Overview: Finish Line Inc. (NASDAQ:FINL) - News Oracle
Finish Line Inc(FINL) Declares Dividend of $0.1100. - Money Flow Index & Trends
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.

$17.14 Current Price

$17.94 Growth Price (DCF)

Fairly valued


Growth Rate Assumed by Market: -6.35%


Future Free Cash Flow Growth Rate: -1.8%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$60.67 Stability Price (EPV)

Undervalued by 253.97%


Discount Rate: 15.0%

$5.71 NCA Price

Overvalued by 66.71%

$19.76 Book Price

Undervalued by 15.27%


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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