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Analysis summary4-Traders Strategies 

Staples, Inc. : Anticipating a technical rebound

04/11/2012 | 11:04am
Opinion : Bullish above USD 15.4
Target price : USD 16.8
Stop loss: USD 14.7
Other Specialty Retailers

Staples, the largest U.S office suppliers had published fourth quarter profit to $283.6 million from $274.7 million a year ago. Thomson Reteurs’consensus expected $279 million.

However Staples’  management expects for 2012, a slow growth in the U.S economy and a soft demand environment in Europe. Currently, the company is trading at a low level compared to historic benchmark as shown by the ratio “enterprise value/revenue” at 0.44x. Besides, the EPS estimates are equal for the last 6 months.

In early march, after several attempts the stock has successfully breaks through the USD 15.5 technical line. After that, this movement has entailed an impetus to the USD 16.85 resistance. Then, a profit taking phase is occured and the share has fallen to USD 15.4.

For a trading strategy, market participants can anticipate a technical rebound bolstered by 50-days moving average up which could push the share to the USD 16.85. It would be advisable to buy the stock at the current price but if the security falls below USD 15, this strategy will be cancelled.

Staples, Inc. : Staples, Inc. : Anticipating a technical rebound

© 2012

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Financial Ratios

Size 2016e 2017e
Capitalization 10 696 M$ -
Entreprise Value (EV) 10 799 M$ 10 573 M$
Valuation 2016e 2017e
PER (Price / EPS) 17,8x 18,0x
Capitalization / Revenue 0,49x 0,49x
EV / Revenue 0,49x 0,49x
EV / EBITDA 7,73x 7,40x
Yield (DPS / Price) 2,99% 3,16%
Price to book (Price / BVPS) 1,84x 1,81x
Profitability 2016e 2017e
Operating Margin (EBIT / Sales) 4,27% 4,42%
operating Leverage (Delta EBIT / Delta Sales) -0,91x -
Net Margin (Net Profit / Revenue) 2,93% 2,85%
ROA (Net Profit / Asset) 5,80% 5,85%
ROE (Net Profit / Equities) 11,0% 11,7%
Rate of Dividend 53,3% 56,7%
Balance Sheet Analysis 2016e 2017e
CAPEX / Sales   1,68% 1,72%
Cash Flow / Sales (Taux d'autofinancement) 4,91% 4,69%
Capital Intensity (Assets / Sales) 0,51x 0,49x
Financial Leverage (Net Debt / EBITDA) 0,07x -0,09x
Income Statement Evolution
More Financials
EPS Revisions
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