This company, primarily a retailer and distributor of repaired jewelry, precious metal bullion, and sorted scrap items, has been grouped into jewelry& gold exchange sector in personal items industry.
It seems that, based on the typical company data, the sales bounced back in 2017 after continuing declining in the past several years as indicated by the increase in sales in almost products including jewelry, billion, and scrap gold.
While the decreased margin in sales of jewelry and scrap products may imply that a relatively decreased price, compared with increasing supply costs, may be the driver behind the sales increase, it is the fact that demand for those products has come back.
Sales of bullion products also bounced back and the improved margin in bullion product sales provides another proof that demand has been stronger.
The typical companies’ gross margin went up to 18% in 2017. Companies’ cash flow thus significantly increased in 2017 due to saving from management and operation.
The typical average stock price/cash flow ratio is about 18.
It seems that the demand for its repaired and re-cleaned jewelry and gold products of this company has been bouncing back in 2017 after years’ falling before. Increase in sales of jewelry products seems to be leading this re-bounce in 2017.
The 2017 compared with the 2016
Revenue increased by about 28% primarily due to increase of 72% in sales of jewelry, increase of 23% in sales of rare coins, and increase of 106% in scrap sales.
The 2016 compared with the 2015
Revenue decreased by about 21% primarily due to decrease of 22% in sales of jewelry, decrease of 32% in sales of rare coins, decrease of 21% in bullion, and decrease of 16% in scrap sales.
The fiscal 2016 compared with 2015
Revenue decreased by about 14%.
Its gross margin (excluding store related operation costs) has been flat at around 18% primarily to improved margin in bullion products. With an improved SG&A as percentage of sales (15%) as a result of significant saving in management and operation, its operating margin increased to about 3% in 2017.
Stock performance
This stock currently has a stock price/cash flow ratio of 18. We think that its stock is being relatively slightly undervalued.
