Gordman Stores (NASDAQ:GMAN)

AnsgarJohn (58.77) Submitted: 5/6/2013 11:11:56 AM : Start Price: $11.39 GMAN Score: +2.07

100% score on Graham defensive and 93% on Peter Lynch

Detailed Analysis   Guru Score: 93%   Find Other Stocks that Pass This Guru

DETERMINE THE CLASSIFICATION:

This methodology would consider GMAN a "fast-grower".

P/E/GROWTH RATIO: [PASS]

The investor should examine the P/E (9.35) relative to the growth rate (43.87%), based on the average of the 3, 4 and 5 year historical eps growth rates, for a company. This is a quick way of determining the fairness of the price. In this particular case, the P/E/G ratio for GMAN (0.21) is very favorable.

SALES AND P/E RATIO: [NEUTRAL]

For companies with sales greater than $1 billion, this methodology likes to see that the P/E ratio remain below 40. Large companies can have a difficult time maintaining a growth rate high enough to support a P/E above this threshold. GMAN, whose sales are $615.1 million, is not considered large enough to apply the P/E ratio analysis. However, an investor can analyze the P/E ratio relative to the EPS growth rate.

EPS GROWTH RATE: [PASS]

This methodology favors companies that have several years of fast earnings growth, as these companies have a proven formula for growth that in many cases can continue many more years. This methodology likes to see earnings growth in the range of 20% to 50%, as earnings growth over 50% may be unsustainable. The EPS growth rate for GMAN is 43.9%, based on the average of the 3, 4 and 5 year historical eps growth rates, which is considered 'OK'. However, it may be difficult to sustain such a high growth rate.

TOTAL DEBT/EQUITY RATIO: [PASS]

This methodology would consider the Debt/Equity ratio for GMAN (0.18%) to be exceptionally low (equity is at least ten times debt). This ratio is one quick way to determine the financial strength of the company.

FREE CASH FLOW: [NEUTRAL]

The Free Cash Flow/Price ratio, though not a requirement, is considered a bonus if it is above 35%. A positive Cash Flow (the higher the better) separates a wonderfully reliable investment from a shaky one. This methodology prefers not to invest in companies that rely heavily on capital spending. This ratio for GMAN (-3.52%) is too low to add to the attractiveness of the stock. Keep in mind, however, that it does not adversely affect the company as it is a bonus criteria.

NET CASH POSITION: [NEUTRAL]

Another bonus for a company is having a Net Cash/Price ratio above 30%. Lynch defines net cash as cash and marketable securities minus long term debt. According to this methodology, a high value for this ratio dramatically cuts down on the risk of the security. The Net Cash/Price ratio for GMAN (18.93%) is too low to add to the attractiveness of this company. Keep in mind, however, that it does not adversely affect the company as it is a bonus criteria.

RumbachStock (71.28) Submitted: 4/27/2013 7:56:16 AM : Start Price: $11.55 GMAN Score: -1.29

Undervalued, no debt, good cash flow, etc.

2good2betrue (20.46) Submitted: 3/27/2013 11:30:10 AM : Start Price: $11.49 GMAN Score: -2.47

Agree with the consensus (oversold), but don't think the bears and shorts have run for cover... This thing could go south a bit more in my opinion - start at 11.50, sell at 18, drop if goes under 11.

tenmiles (99.92) Submitted: 3/26/2013 1:31:14 PM : Start Price: $12.00 GMAN Score: -7.08

Likely a good entry point after today's trashing - long around $12 - patience likely required.

Chiownknee2 (87.89) Submitted: 1/28/2013 9:49:02 AM : Start Price: $11.58 GMAN Score: -7.70

Promising growth prospects.

Incom (48.72) Submitted: 1/16/2013 3:48:06 PM : Start Price: $11.90 GMAN Score: -12.68

ET Screen "$, 20% 52 low"

line70day (28.81) Submitted: 10/4/2012 10:54:37 AM : Start Price: $14.50 GMAN Score: -38.33

opening new stores Gross profit for 26 weeks ended july 26 \ 2012 increased 13.8 M or 12.7% to $122.2 M compaired to $ 108.4 M same 26 weeks 2011 Gross profit 2012 increased 40 base points to 46.6%compaired to same period 2011

pbk100 (29.27) Submitted: 6/8/2011 11:53:25 AM : Start Price: $15.88 GMAN Score: -53.86

Low P/E, Good ROE, Insider buying

Patastic (< 20) Submitted: 1/6/2011 12:21:46 PM : Start Price: $10.93 GMAN Score: -28.97

The three most important things you need to know about stock investing...growth, growth and growth.

That makes this stock an excellent opportunity for the next 5 years. My wife swears this store will overtake TJ Maxx in popularity with the female shopping demographic. Strongh growth will continue in the upper Midwest in the foreseeable future and hopefully expand nationwide. It's not too late to jump on this stock.