Big Lots Stock Price and Research (NYSE: BIG)
Big Lots (NYSE: BIG) is a small cap company that operates within the multiline retail industry. Its market cap is $2 billion today and the total one-year return is -14.82% for shareholders.
Big Lots stock is underperforming the market. It's beaten down, but it reports earnings soon. So is it a good time to buy? To answer this question we've turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.
Our system looks at six key metrics...
✗ Earnings-per-Share (EPS) Growth: Big Lots reported a recent EPS growth rate of 22.55%. That's below the multiline retail industry average of 55.86%. That's not a good sign. We like to see companies that have higher earnings growth.
✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the multiline retail industry is 37.91. And Big Lots’ ratio comes in at 9.34. It's trading at a better value than many of its competitors.
✓ Debt-to-Equity : The debt-to-equity ratio for Big Lots stock is 29.84%. That's below the multiline retail industry average of 1121.08%. That's a good sign. Big Lots’ debt levels are not out of control.
✗ Free Cash Flow per Share Growth : Big Lots has decreased its FCF per share over the last year relative to its competitors. That's not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.
✗ Profit Margins : The profit margin of Big Lots comes in at 6.38% today. And generally, the higher, the better. We also like to see this ratio above competitors. Big Lots’ profit margin is below the multiline retail average of 9.64%. So that's a negative indicator for investors.
✓ Return on Equity : Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for Big Lots is 28.76% and that's above its industry average ROE of 11.18%.
Big Lots stock passes three of our six key metrics today. That's why our Investment U Stock Grader gives it a Hold.
Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That's why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.
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