Is Overstock Trading at a Discount?

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E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for Overstock is normal. It’s higher than Amazon and eBay (NASDAQ:EBAY), but that should be expected. The balance sheet is positive, which is seen less than 50 percent of the time these days. This is a very strong sector in that regard.

Debt-To-Equity

Cash

Long-Term Debt

OSTK

.80

$72.47 Million

$17.00 Million

AMZN

.35

$5.25 Billion

$2.68 Billion

EBAY

.23

$9.14 Billion

$4.52 Billion

 

T = Technicals on the Stock Chart Are Strong

Overstock has outperformed its competitors over the past year, but the opposite is true on a three-year basis.

1 Month

Year-To-Date

1 Year

3 Year

OSTK

-6.99%

81.63%

75.59%

-3.59%

AMZN

10.96%

45.07%

30.09%

87.19%

EBAY

8.95%

71.45%

64.35%

129.10%

 

At 14.24, Overstock is currently trading above all its averages.

50-Day SMA

13.21

100-Day SMA

10.96

200-Day SMA

8.57

 

E = Earnings and Revenue Are Mixed

Annual earnings and revenue had been consistently growing until 2011. What looked like a clear developing picture had suddenly become foggy.  

2007

2008

2009

2010

2011

Revenue ($)in millions

785.90

829.85

876.77

1.09B

1.05B

Diluted EPS ($)

-2.03

-.48

.33

.59

-.84

 

Quarterly earnings and revenue have also been mixed, but we did see vast improvements in Q3 YoY.   

9/2011

12/2011

3/2012

6/2012

9/2012

Revenue ($)in millions

239.74

314.08

262.37

239.54

255.35

Diluted EPS ($)

-.33

-.15

.12

.02

.11

 

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