Family Dlr Stores Inc (NYSE:FDO)

CAPS Rating: 2 out of 5

The Company together with its wholly-owned subsidiaries operates a chain of more than 6,200 general merchandise retail discount stores in 44 states, providing low to lower-middle income consumers with a range of merchandise in neighborhood stores.

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Player Avatar alexmaxbir (42.14) Submitted: 11/17/2012 7:02:13 PM : Underperform Start Price: $66.78 FDO Score: +20.92

Free cash flow has steadily declined from a comfortable $439 million in 2009 to $92 million now. The company has low net margins, and the dividend is relatively small as well. Other than that, indicators such as PEG ratio and other growth factors suggest excellent progress for Family Dollar. However, these other aspects are likely going to cause me to sell out as soon as possible. Despite its low beta, this stock is in fact riskier than it seems.

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