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Validea's pick of the week provides a detailed report on a company that scores well in the stock-screening service's model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor provides marketing and data services to Validea.ca and receives compensation. Try it.
Indianapolis-based The Finish Line is a retailer of athletic shoes, apparel and accessories with approximately 1,010 Finish Line branded locations, primarily in U.S. malls and shops inside Macy's department stores. It has a market cap of $900-million (U.S.).
Shares tumbled in late September after the company announced disappointing second-quarter sales results. The Benjamin Graham-based model thinks the market was too hard on the stock. The Graham model likes its 2.7 current ratio, and lack of any long-term debt. It also trades for just 12.4 times three-year average earnings, and just 1.5 times book value, representing good value, according to the Graham-based approach.
The Kenneth Fisher-based model likes its 0.46 price/sales ratio, and 0-per-cent total debt/equity ratio.
The Finish Line has a solid 14-per-cent return on equity and has a 1.9-per-cent dividend yield.
The Joel Greenblatt model likes its 17.5-per-cent EBIT/enterprise value.
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