In Focus – FLWS

Determining the best stocks to buy now can only be achieved with a thorough examination of each and every single stock of interest. The purpose of this report is to present our findings after our firm’s thorough analysis of 1-(800)-Flowers.com.

Background

1-(800)-Flowers.com (FLWS) is a flower and gift shop. The company operates in three segments: Consumer Floral, Gourmet Food and Gift Baskets, and BloomNet Wire Services. The company offers an array of popular flowers, plants and gifts for various events. It also licenses the Stockyards name through which it sells premium meats.

Stock Fundamentals

FLWS has experienced good growth in sales and sales per share over the last business cycles. But most of this is a result of the firm’s purchase of Harry & David Holdings in 2014. We suspect that Harry & David had very high sales per share, but low price/sales. This would make FLWS’s growth in sales per share a little bit of an illusion or at least dubious. We have not been able to confirm this because Harry & David was a quasi-publicly traded firm on which it is hard to get information.

Incidentally, Harry & David produced fruit, gourmet food, and other gift products. It filed for bankruptcy in 2011. Shortly after it emerged from bankruptcy, it was purchased by FLWS in 2014.

Organic growth in sales at FLWS has been meager. Growth in profits and cash flows has not been much better. The firm pays no dividend. And its free cash flows over the last business cycle look like they have been barely positive (if not worse).

The firm increased its long-term debt significantly with the purchase of Harry & David. And we now rate this firm’s financial strength as average. We rate this firm’s overall fundamentals as below average. And we would not consider 1-(800)-Flowers.com one of the best stocks to buy now.

Stat Sheet – 1-(800)-Flowers.com, Inc. 4/22/16

Ticker FLWS
Industry  Retail (Specialty Non-Apparel)
Price $ 7.98
Market Cap  $ 517
Dividend Yield 0.0
Dividend/CFOp 0.0
Equity/Assets 0.332
Average Equity/Assets 0.519
Financial Strength Average
Growth Prospects Average
Beta 1.87
Price Volatility Above Average
Stock Fundamentals D

(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016)

If you would like to see the research we make available to sort through all the stocks we cover, click the link below.

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Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.

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In Focus – FLWS

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