Fred's, Inc. (FRED): General Merchandise Retail
“Freds, Inc., together with its subsidiaries, engages in the
sale of general merchandise through retail discount stores and full service
pharmacies in the southeastern United States. It offers pharmaceuticals,
household goods, food and tobacco, paper and cleaning supplies, health and
beauty aids, apparel and linens, disposable diapers, pet foods, paper products,
and various food and beverage products primarily to low, middle, and fixed
income families in small- to medium- sized towns. The company also sells
general merchandise to franchised Fred's stores. As of January 28, 2012, it
operated 679 company-owned discount general merchandise stores, including 41
express stores; and 325 pharmacies, as well as 21 franchised Fred's stores. The
company was founded in 1947 and is headquartered in Memphis, Tennessee.”
Fred continues to under perform their industry peers, discount merchandise. Fred’s stock returned -.78 versus
22.32% for the industry. P/S, P/B and P/CF are all below their industry valuations.
Outstanding share count has been significantly
reduced from a 2008 balance of 39,771,000 to the most recent count
of 36,682,750. Gross margins have steadily climbed from 2008 at 27.53% to the
most recent reported balance of 28.94%. Book value per share also steadily moves
higher from a 2008 9.23 per share balance to today’s 11.80 per share.The Company owns the real estate
and the buildings for 88 locations , distribution center and corporate
headquarters situated on approximately 60 acres in Memphis, Tennessee.
Market Cap: 495.37M , Enterprise
Value:475.34M
Price/Book: 1.12, Enterprise
Value/Revenue: 0.25
Enterprise Value/EBITDA: 5.70, Short
% of Float: 11.70%
Stock opened up at 13.28 and closed the day at 13.50
Stock opened up at 13.28 and closed the day at 13.50
