QURATE RETAIL GROUP INC-B (QRTEB)
US74915M2098 - Common Stock
We assign a fundamental rating of 3 out of 10 to QRTEB. QRTEB was compared to 33 industry peers in the Broadline Retail industry. Both the profitability and financial health of QRTEB have multiple concerns. QRTEB is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
QRTEB had positive earnings in the past year.
In the past year QRTEB had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: QRTEB reported negative net income in multiple years.
In the past 5 years QRTEB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.51%, QRTEB is in line with its industry, outperforming 42.42% of the companies in the same industry.
QRTEB's Return On Equity of -65.10% is on the low side compared to the rest of the industry. QRTEB is outperformed by 72.73% of its industry peers.
The Return On Invested Capital of QRTEB (6.51%) is better than 60.61% of its industry peers.
QRTEB had an Average Return On Invested Capital over the past 3 years of 6.54%. This is below the industry average of 11.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.51% | ||
| ROE | -65.1% | ||
| ROIC | 6.51% |
ROA(3y)-6.6%
ROA(5y)-3.07%
ROE(3y)-218.45%
ROE(5y)-126.26%
ROIC(3y)6.54%
ROIC(5y)7.55%
1.3 Margins
Looking at the Operating Margin, with a value of 6.55%, QRTEB is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Operating Margin of QRTEB has declined.
QRTEB has a Gross Margin of 34.68%. This is in the lower half of the industry: QRTEB underperforms 69.70% of its industry peers.
In the last couple of years the Gross Margin of QRTEB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.55% | ||
| PM (TTM) | N/A | ||
| GM | 34.68% |
OM growth 3Y-20.24%
OM growth 5Y-10.22%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.68%
GM growth 5Y-0.46%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so QRTEB is destroying value.
QRTEB has more shares outstanding than it did 1 year ago.
The number of shares outstanding for QRTEB has been reduced compared to 5 years ago.
QRTEB has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.38, we must say that QRTEB is in the distress zone and has some risk of bankruptcy.
QRTEB has a Altman-Z score of 1.38. This is in the lower half of the industry: QRTEB underperforms 69.70% of its industry peers.
QRTEB has a debt to FCF ratio of 9.49. This is a negative value and a sign of low solvency as QRTEB would need 9.49 years to pay back of all of its debts.
QRTEB's Debt to FCF ratio of 9.49 is in line compared to the rest of the industry. QRTEB outperforms 48.48% of its industry peers.
QRTEB has a Debt/Equity ratio of 22.84. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of QRTEB (22.84) is worse than 87.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 22.84 | ||
| Debt/FCF | 9.49 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.9
WACC7.25%
2.3 Liquidity
QRTEB has a Current Ratio of 1.33. This is a normal value and indicates that QRTEB is financially healthy and should not expect problems in meeting its short term obligations.
QRTEB has a Current ratio (1.33) which is comparable to the rest of the industry.
QRTEB has a Quick Ratio of 1.33. This is a bad value and indicates that QRTEB is not financially healthy enough and could expect problems in meeting its short term obligations.
QRTEB's Quick ratio of 0.89 is on the low side compared to the rest of the industry. QRTEB is outperformed by 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
QRTEB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 650.00%, which is quite impressive.
The earnings per share for QRTEB have been decreasing by -34.09% on average. This is quite bad
QRTEB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.57%.
The Revenue has been decreasing by -4.95% on average over the past years.
EPS 1Y (TTM)650%
EPS 3Y-56.77%
EPS 5Y-34.09%
EPS growth Q2Q180%
Revenue 1Y (TTM)-10.57%
Revenue growth 3Y-8.35%
Revenue growth 5Y-4.95%
Revenue growth Q2Q-11.42%
3.2 Future
QRTEB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.79% yearly.
Based on estimates for the next years, QRTEB will show a decrease in Revenue. The Revenue will decrease by -1.76% on average per year.
EPS Next Y184.11%
EPS Next 2Y73.82%
EPS Next 3Y46.79%
EPS Next 5YN/A
Revenue Next Year-5.21%
Revenue Next 2Y-2.89%
Revenue Next 3Y-1.76%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.58, which indicates a correct valuation of QRTEB.
Based on the Price/Earnings ratio, QRTEB is valued a bit cheaper than the industry average as 75.76% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.15. QRTEB is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 5.72, the valuation of QRTEB can be described as very cheap.
Based on the Price/Forward Earnings ratio, QRTEB is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.20, QRTEB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.58 | ||
| Fwd PE | 5.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QRTEB is valued a bit cheaper than the industry average as 75.76% of the companies are valued more expensively.
96.97% of the companies in the same industry are more expensive than QRTEB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.31 | ||
| EV/EBITDA | 6.57 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as QRTEB's earnings are expected to grow with 46.79% in the coming years.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y73.82%
EPS Next 3Y46.79%
5. Dividend
5.1 Amount
QRTEB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
QURATE RETAIL GROUP INC-B
NASDAQ:QRTEB (5/17/2024, 7:22:26 PM)
4.15
+0.2 (+5.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.58 | ||
| Fwd PE | 5.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.51% | ||
| ROE | -65.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.55% | ||
| PM (TTM) | N/A | ||
| GM | 34.68% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 22.84 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)650%
EPS 3Y-56.77%
EPS 5Y
EPS growth Q2Q
EPS Next Y184.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.57%
Revenue growth 3Y-8.35%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y