Express, Inc. (EXPR) is a clothing retailer that targets men and women between the ages of 20 and 30. The stock has fallen significantly in the past year, and it appears to be a great value play. The stock's chart has a very significant gap that I am betting on being partially or completely filled.
The following are some multiples on the stock that reflect its value:
Price/Earnings: 6.61
Price/Sales: 0.46
Price/Book: 3.27
PEG (Price to Earnings Growth): 0.38
How do these compare with peers? The following are the retail industry's averages for these multiples:
Price/Earnings: 20.44
Price/Sales: 1.73
Price/Book: 6.57
PEG (Price to Earnings Growth): 1.46
EXPR has a Current Ratio of 1.48, a Quick Ratio of 0.70, and
an Interest Coverage of 6.54 (company's operating profits are 6.54 times
greater than interest payments). Therefore, it should not have difficulty in repaying its debt.
The following are some multiples on the stock that reflect its value:
Price/Earnings: 6.61
Price/Sales: 0.46
Price/Book: 3.27
PEG (Price to Earnings Growth): 0.38
How do these compare with peers? The following are the retail industry's averages for these multiples:
Price/Earnings: 20.44
Price/Sales: 1.73
Price/Book: 6.57
PEG (Price to Earnings Growth): 1.46
EXPR has a Current Ratio of 1.48, a Quick Ratio of 0.70, and
an Interest Coverage of 6.54 (company's operating profits are 6.54 times
greater than interest payments). Therefore, it should not have difficulty in repaying its debt.