Critical Profitability Ratio Analysis: Pier 1 Imports (NYSE:PIR), KBR, Inc. (NYSE:KBR)

Pier 1 Imports, Inc. (NYSE:PIR) kept active in profitability ratio analysis, on current situation shares price an ascending -2.06% to $8.55. The total volume of 3.36 Million shares held in the session, while on average its shares change hands 2829.79 shares.

Pier 1 Imports (PIR) is the favored pick of Loop Capital Markets analyst Anthony Chukumba in the home decor retail space. He rated Pier 1 a “buy” with a $12 price target on Wednesday, implying 41% upside from current levels. “Given Pier 1’s improving fundamentals, fairly easy upcoming YoY comparisons, and healthy free cash flow, we believe the stock should trade at a substantially higher valuation. Alden Global Capital’s stake provides us with additional comfort in recommending the stock,” Chukumba wrote in a note.

Efficiency Evaluation in Focus

Entering into profitability analysis, the co has noticeable returns on equity ratio of 8.20%, which discloses how corporation’s management efficiently generates profit from shareholders invested money. The returns on investment very popular metric among passive investors, it stands at 10.60%, when it lies in positive figure than security is feasible for investment or goes for higher ROI stocks. To see the other side of picture, profit margin of PIR stands at positive 1.20%; that indicates a firm actually every dollar of sales keeps in earnings. The 2.60% returns on assets presents notable condition of firm. Mostly ROA known as a comparative measure, it is best to compare it against a firm’s previous ROA numbers or the ROA of a same firm.

To find out the technical position of PIR, it holds price to book ratio of 2.63 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 19.36, and price to earnings ratio calculated as 31.98. PIR is presenting price to cash flow of 8.83 and free cash flow concluded as 12.60.

To stick with focus on profitability valuation, KBR, Inc. (NYSE:KBR) also listed in significant eye catching mover, KBR attains returns on investment ratio of 19.90%, which suggests it’s viable on security that has lesser ROI.

To strengthen this concept we can use profit margin, which is standing at positive 1.60%, and it is providing insight view about a variety of aspects of a firm’s financial performance. The operating profit margin and gross profit margin can be giving more focus view that is 3.30% and 4.80% respectively. Turns back to returns ratios, the co’s returns on assets calculated as 19.90%; that gives an idea as to how efficient management is at using its assets to generate earnings. Finally yet importantly, returns on equity stands at 6.10%.

EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at 116.30%, and looking further price to next year’s EPS is 201.35%. While take a short look on price to sales ratio, that was 0.59 and price to earning ration of 35.77 attracting passive investors.

 

About Blake Escott

Blake Escott holds junior writer position in SWR. Before joining Streetwise Report, he was a freelance content Writer. He has high-level copywriting experience and particularly experienced in proofreading and editing. He covers news about different companies including all US market sectors. Interests: Commodities, Energy stocks, Sector-wise Stocks analysis, Utilities

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