Fred’s, Inc. [NASDAQ:FRED]: Analyst Rating and Earnings

Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. Its stock price has been found in the range of 0.43 to 3.58. This is compared to its latest closing price of $0.46.

For the quarter ending in Oct-18 Fred’s, Inc. [FRED] generated $0.31 billion in sales. That’s 23.85% lower than the average estimate of $0.4 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.

Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Thu 13 Jun (In 27 Days).

Fundamental Analysis of Fred’s, Inc. [FRED]

Now let’s turn to look at profitability: with a current Operating Margin for Fred’s, Inc. [FRED] sitting at -7.57 and its Gross Margin at +22.94, this company’s Net Margin is now -1.00%. 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 -32.83, and its Return on Invested Capital has reached -54.30%. Its Return on Equity is -79.18, and its Return on Assets is -27.26. These metrics suggest that this Fred’s, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, Fred’s, Inc. [FRED] has generated a Total Debt to Total Equity ratio of 44.17. Similarly, its Total Debt to Total Capital is 30.64, while its Total Debt to Total Assets stands at 17.87. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 8.73, and its Long-Term Debt to Total Capital is 6.06. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.

What about valuation? This company’s Enterprise Value to EBITDA is -1.36. The Enterprise Value to Sales for this firm is now 0.07, and its Total Debt to Enterprise Value stands at 0.42. Fred’s, Inc. [FRED] has a Price to Book Ratio of 0.61.

Shifting the focus to workforce efficiency, Fred’s, Inc. [FRED] earns $193,510 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 20.75 and its Total Asset Turnover is 2.53. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.32 and its Current Ratio is 1.47. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.

Fred’s, Inc. [FRED] has 36.86M shares outstanding, amounting to a total market cap of $16.96M. Its stock price has been found in the range of 0.43 to 3.58. At its current price, it has moved by -87.42% from its 52-week high, and it has moved 4.70% from its 52-week low.

This stock’s Beta value is currently 1.41, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 14.23. This stock, according to these metrics, is currently Oversold.

Conclusion: Is Fred’s, Inc. [FRED] a Reliable Buy?

Fred’s, Inc. [FRED] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.