The Michaels Companies, Inc. [NASDAQ:MIK]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to The Michaels Companies, Inc. [MIK], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in January. On average, stock market experts give MIK an Outperform rating. Its stock price has been found in the range of 10.90 to 22.15. This is compared to its latest closing price of $12.80.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The Michaels Companies, Inc. [MIK] is sitting at 2.38. This is compared to 1 month ago, when its average rating was 2.23.
For the quarter ending in Jan-19 The Michaels Companies, Inc. [MIK] generated $1.79 billion in sales. That’s 0.58% higher than the average estimate of $1.78 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Thu 13 Jun (In 57 Days).
Fundamental Analysis of The Michaels Companies, Inc. [MIK]
Now let’s turn to look at profitability: with a current Operating Margin for The Michaels Companies, Inc. [MIK] sitting at +12.75 and its Gross Margin at +38.39, this company’s Net Margin is now 6.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 58.54, and its Return on Invested Capital has reached 43.10%. Its Return on Assets is 14.40.
Similarly, its Total Debt to Total Capital is 250.61, while its Total Debt to Total Assets stands at 127.14.
What about valuation? This company’s Enterprise Value to EBITDA is 5.56 and its Total Debt to EBITDA Value is 3.40. The Enterprise Value to Sales for this firm is now 0.84, and its Total Debt to Enterprise Value stands at 0.56.
Shifting the focus to workforce efficiency, The Michaels Companies, Inc. [MIK] earns $112,169 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 114.32 and its Total Asset Turnover is 2.38. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.44 and its Current Ratio is 1.63. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
The Michaels Companies, Inc. [MIK] has 157.14M shares outstanding, amounting to a total market cap of $2.03B. Its stock price has been found in the range of 10.90 to 22.15. At its current price, it has moved by -41.72% from its 52-week high, and it has moved 18.44% from its 52-week low.
This stock’s Beta value is currently 1.11, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 57.05. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is The Michaels Companies, Inc. [MIK] a Reliable Buy?
Shares of The Michaels Companies, Inc. [MIK], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.