4/14/2014

Cheap and Risky founded 1915: 52 Change -58.40%


Gordmans Stores, Inc. (GMAN) : operates every day value price department stores,founded in 1915 with 95 stores in 20 states.



Why consider this cheap but RISKY idea. Note the main risk is from additional 2013 long term debt.

On the positive side list would include; GMAN has value versus historical results and industry peers for the following valuation measures, sales, book, earnings yield.Recently announced retirement  CEO Jeff Gordman will bring new leadership.Average 2011 to current annual EV/EBITDA was 5.71 versus the current TTM 4.35.

Outstanding but declining ROIC from 2010 to TTM, 49.12%,36.74%,37.71%,25.98%,8.15% respectively. Share count has remained stable from 2012.Modest positive insider activity. 















Market Cap: 88.63M ,Enterprise Value:  137.06M
Trailing P/E:  11.20 ,Price/Book:   2.17
Enterprise Value/Revenue :    0.22
Revenue :  627.39M ,
Qtrly Revenue Growth (yoy):  -1.10%
Gross Profit (ttm):  261.92M ,EBITDA (ttm):  24.53M
Total Cash: 5.76M ,Total Cash Per Share :   0.30
Total Debt: 52.25M ,Total Debt/Equity :   124.99
Current Ratio :  1.55
52-Week Change:   -58.40%

% Held by Insiders:    53.83%