Sector financial performance:

This company, which primarily develops, manufactures, and distributes outdoor equipment and lifestyle products focusing on climb, ski, mountain, and sports, has been grouped into ski equipment sector in sport goods industry.

It seems that the demand for climb, mountain, and ski equipment has been stabilized and growing since 2016 as indicated by increased sales volume of those products for related companies in this sector. However, the general demand from US domestic market for ski products seems not to be as strong as international market and the performance of climb and mountain products seems to be better than ski products.

Impact from foreign currency on profit of companies seems to be significant due to increasing contribution to sales growth from international market. A typical gross margin (including direct operating costs and depreciation) was 32.5%, the SG&A as percentage of sales was about 33%, and the operating margin was about -1% in the past year. And EBI/sales was about -0.9% in 2018.

The typical enterprise price/sales ratio is 1.3.

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Company performance:

It seems that the demand for climb and ski products of this company has been picking up since 2016 as indicated by the growth in sales volume of those products during the same period of time. It seems that the demand for climb and mountain products has been stronger than for ski products both domestically and internationally.

The first three months of fiscal 2018 compared with the same period of 2017 (ended mar 31 2018)

Organic revenue (excluding acquisition and foreign currency) increased about 4.5% due to increase of 20% in international sales volume of climb and ski products offset by decrease of 9.3% in domestic sales volume of ski products.

Fiscal 2017 compared with fiscal 2016

Organic revenue (excluding acquisition and foreign currency) increased about 7% due to increase of 6.7% in domestic sales volume of climb and ski products and increase of 7.4% in international sales volume of climb and ski products.

Fiscal 2016 compared with fiscal 2015

Organic revenue (excluding acquisition and foreign currency) increased about 0.5% due to increase of 2.3% in domestic sales volume of climb products offset by decrease of 1.7% in international sales volume of ski products.

Its gross margin (including direct operating costs and depreciation) was down from about 35% to about 32.5% primarily due to unfavourable foreign currency and the resulted decrease in sales.   With the improved SG&A as percentage of sales (down to about 33% in 2018) due to costs saving effort, we have been decreased loss (operating margin down to -1% currently).

Stock price

This company is having an enterprise price/sales ratio of 1.3($8/share). We think that its stock was relatively overvalued COMPARED similar sport good manufacturers.