Sector financial performance:

This company, which primarily sells technology products/solutions by their stores, has been grouped into retail -technology products/solution sector in information processing equipment industry.

It seems that the demand for consumer electronic and computing products and content selling by companies in this sector has been strong and growing fast in the past two years thanks to continuingly strong demand from online sales (more than 20% annual growth in comparable sale since 2016) and as well rebounding of in-store sales (2% and 4% for comparable sales in 2017 and 2018 ).

The typical gross margin is about 23% and with a SG&A as percentage of sales of 19% the operating margin is about 4% in 2018. The typical enterprise price/EBI ratio is 19.

                                                                                                       click for reading more about this industry

Company performance:

It seems that the in-store demand for products selling at this company has been grown in the past two years as indicated by growth in its in-store comparable sales. Online demand has been strong and growing in the past several years as indicated by online comparable sales.

The first three months of fiscal 2019 compared with the same period of 2018 (ended May 5 2018)

Organic revenue increased about 7% attributable to increase of about 7% in comparable sales.

Online comparable sales increased 12% due to increase in transaction size and conversion rate.

Fiscal 2018 compared with fiscal 2017

Organic revenue increased about 7% attributable to increase of about 5% in comparable sales.

Online comparable sales increased 20% due to increase in conversion rate.

Fiscal 2017 compared with fiscal 2016

Organic revenue was about flat attributable to increase of about 0.2% in comparable sales.

Online comparable sales increased 21% due to increase in traffic. In-store comparable sales decreased.

Its gross margin was flat at around 23% since 2015 at a combined result of increased revenue and store expansion. With the flat SG&A as percentage of sales (at around 19%), we see a flat operating margin (at about 4% in 2018). Its average EBI/share increased since 2015.

Stock performance

This company is having an enterprise price/EBI ratio of 19. We think that its stock is being relatively slightly overvalued compared with other retailers.