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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.24
NAS:SHLD's Cash to Debt is ranked lower than
53% of the 1083 Companies
in the Global Department Stores industry.

( Industry Median: 2.50 vs. NAS:SHLD: 0.24 )
NAS:SHLD' s 10-Year Cash to Debt Range
Min: 0.2   Max: 8.36
Current: 0.24

0.2
8.36
Equity to Asset 0.10
NAS:SHLD's Equity to Asset is ranked lower than
61% of the 1073 Companies
in the Global Department Stores industry.

( Industry Median: 0.52 vs. NAS:SHLD: 0.10 )
NAS:SHLD' s 10-Year Equity to Asset Range
Min: 0.1   Max: 0.52
Current: 0.1

0.1
0.52
F-Score: 2
Z-Score: 1.91
M-Score: -2.68
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 3/10

vs
industry
vs
history
Operating margin (%) -2.56
NAS:SHLD's Operating margin (%) is ranked lower than
56% of the 1074 Companies
in the Global Department Stores industry.

( Industry Median: 5.56 vs. NAS:SHLD: -2.56 )
NAS:SHLD' s 10-Year Operating margin (%) Range
Min: -3.61   Max: 9.18
Current: -2.56

-3.61
9.18
Net-margin (%) -3.77
NAS:SHLD's Net-margin (%) is ranked lower than
56% of the 1073 Companies
in the Global Department Stores industry.

( Industry Median: 3.91 vs. NAS:SHLD: -3.77 )
NAS:SHLD' s 10-Year Net-margin (%) Range
Min: -7.55   Max: 5.57
Current: -3.77

-7.55
5.57
ROE (%) -78.49
NAS:SHLD's ROE (%) is ranked lower than
61% of the 1056 Companies
in the Global Department Stores industry.

( Industry Median: 9.28 vs. NAS:SHLD: -78.49 )
NAS:SHLD' s 10-Year ROE (%) Range
Min: -78.49   Max: 24.75
Current: -78.49

-78.49
24.75
ROA (%) -7.47
NAS:SHLD's ROA (%) is ranked lower than
57% of the 1072 Companies
in the Global Department Stores industry.

( Industry Median: 4.70 vs. NAS:SHLD: -7.47 )
NAS:SHLD' s 10-Year ROA (%) Range
Min: -14.69   Max: 12.78
Current: -7.47

-14.69
12.78
ROC (Joel Greenblatt) (%) -14.14
NAS:SHLD's ROC (Joel Greenblatt) (%) is ranked lower than
56% of the 1073 Companies
in the Global Department Stores industry.

( Industry Median: 20.54 vs. NAS:SHLD: -14.14 )
NAS:SHLD' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -18.16   Max: 76.35
Current: -14.14

-18.16
76.35
Revenue Growth (%) -3.70
NAS:SHLD's Revenue Growth (%) is ranked higher than
52% of the 785 Companies
in the Global Department Stores industry.

( Industry Median: 6.50 vs. NAS:SHLD: -3.70 )
NAS:SHLD' s 10-Year Revenue Growth (%) Range
Min: -3.7   Max: 25.3
Current: -3.7

-3.7
25.3
» NAS:SHLD's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

SHLD Guru Trades in Q1 2013

Bruce Berkowitz 19,508,773 sh (+7.51%)
Murray Stahl 3,258,066 sh (+6.91%)
Francis Chou 683,700 sh (unchged)
Steve Mandel 1,273,500 sh (unchged)
Chuck Akre 300,000 sh (unchged)
Fairholme Fund 14,212,673 sh (unchged)
Whitney Tilson Sold Out
Edward Lampert 33,856,069 sh (-6.82%)
Jeremy Grantham 160,634 sh (-7%)
Steven Cohen 5,757 sh (-17.76%)
» More
Q2 2013

SHLD Guru Trades in Q2 2013

Jim Simons 14,191 sh (New)
Bruce Berkowitz 20,392,973 sh (+4.53%)
Jeremy Grantham 163,644 sh (+1.87%)
Edward Lampert 33,856,069 sh (unchged)
Steve Mandel 2,273,500 sh (unchged)
Chuck Akre 300,000 sh (unchged)
Francis Chou 683,700 sh (unchged)
Fairholme Fund 14,212,673 sh (unchged)
Steven Cohen Sold Out
Murray Stahl 3,242,400 sh (-0.48%)
» More
Q3 2013

SHLD Guru Trades in Q3 2013

Chuck Royce 60,000 sh (New)
Lee Ainslie 517,974 sh (New)
Francis Chou 803,526 sh (+17.53%)
Murray Stahl 3,541,185 sh (+9.21%)
Bruce Berkowitz 20,758,173 sh (+1.79%)
Edward Lampert 33,856,069 sh (unchged)
Steve Mandel 2,273,500 sh (unchged)
Steven Cohen 89,900 sh (unchged)
Fairholme Fund 14,212,673 sh (unchged)
Chuck Akre Sold Out
Jim Simons Sold Out
Jeremy Grantham 152,693 sh (-6.69%)
» More
Q4 2013

SHLD Guru Trades in Q4 2013

Paul Tudor Jones 9,244 sh (New)
Steven Cohen 36,095 sh (New)
Murray Stahl 4,120,612 sh (+16.36%)
Bruce Berkowitz 21,331,673 sh (+2.76%)
Steve Mandel 2,273,500 sh (unchged)
Steven Cohen 60,700 sh (unchged)
Francis Chou 803,526 sh (unchged)
Fairholme Fund 14,212,673 sh (unchged)
Lee Ainslie Sold Out
Chuck Royce 50,000 sh (-16.67%)
Jeremy Grantham 122,211 sh (-19.96%)
Edward Lampert 26,438,272 sh (-21.91%)
» More
» Details

Insider Trades

Latest Guru Trades with NAS:SHLD

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Edward Lampert 2013-12-31 Reduce -21.91%12.69%$43.95 - $65.8 $ 38.33-31%26438272
Lee Ainslie 2013-12-31 Sold Out 0.42%$43.95 - $65.8 $ 38.33-31%0
Bruce Berkowitz 2013-12-31 Add 2.76%0.29%$43.95 - $65.8 $ 38.33-31%21331673
Chuck Akre 2013-09-30 Sold Out 0.57%$39.34 - $62.03 $ 38.33-18%0
Lee Ainslie 2013-09-30 New Buy0.42%$39.34 - $62.03 $ 38.33-18%517974
Bruce Berkowitz 2013-09-30 Add 1.79%0.26%$39.34 - $62.03 $ 38.33-18%20758173
Bruce Berkowitz 2013-06-30 Add 4.53%0.49%$42.08 - $59.79 $ 38.33-23%20392973
Bruce Berkowitz 2013-03-31 Add 7.51%0.87%$40.16 - $52.49 $ 38.33-18%19508773
Bruce Berkowitz 2012-12-31 Add 7.16%0.72%$39.3 - $66.76 $ 38.33-25%18146573
Lee Ainslie 2012-06-30 Sold Out 1%$47.85 - $67.48 $ 38.33-30%0
Chuck Akre 2012-03-31 New Buy2%$29.2 - $83.43 $ 38.33-28%300000
Lee Ainslie 2012-03-31 New Buy1%$29.2 - $83.43 $ 38.33-28%1092755
Bruce Berkowitz 2012-03-31 Add 4.38%0.6%$29.2 - $83.43 $ 38.33-28%16813480
Steve Mandel 2012-03-31 Sold Out 0.3%$29.2 - $83.43 $ 38.33-28%0
Michael Price 2012-03-31 Sold Out 0.23%$29.2 - $83.43 $ 38.33-28%0
Michael Price 2011-12-31 Reduce -51.1%0.49%$31.78 - $82.43 $ 38.33-40%45549
Bruce Berkowitz 2011-03-31 Add 9.36%0.8%$70.18 - $93.03 $ 38.33-52%16313973
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Sears Holdings Corporation

Francis Chou Comments on Sears Holdings - Mar 11, 2014

We believe that Sears Holdings (SHLD) is a misunderstood story. There are many moving parts but we believe Sears Holdings’ intrinsic value lies in its real estate assets. It also has other valuable assets such as Lands’ End, Kenmore, Craftsman and Diehard. Being a traditional department store has become a tough business during the last decade but, according to management, Sears is transitioning its historic focus on running a brick and mortar department store into a business that provides and delivers value by serving its members in the manner most convenient for them: whether in store, at home or through digital devices. The value of its real estate allows Eddie Lampert, the controlling shareholder and CEO, the time and money to effect the changes. If the transformation does not work out as expected, we believe the real estate values are high enough that we would not lose money in our investment at current prices after netting out all liabilities.



In general, we believe that stocks and non-investment grade bonds are fairly valued. We do not time the market but when bargains are scarce, we are happy to hold cash equivalents as an alternative.





From Franis Chou's 2013 letter to shareholders.



Check out Francis Chou latest stock trades

Bruce Berkowitz Comments on Sears Holdings - Feb 10, 2014

Headlines shout of Sears (SHLD)' disastrous 2013 loss of $12 per share. A longer history shows that since the merger of Sears with Kmart, about 9 years ago, s ears has distributed over $66 of cash per share via buybacks and spin-offs and has paid down $27 per share of a pension liability that is no different, in our view, from debt. Fairholme research estimates that the fair value of s ears' net assets exceeds $150 per share. If our research is accurate, we expect s ears' market price of $38 to increase to this value over time.



From Bruce Berkowitz (Trades, Portfolio)'s fourth quarter shareholder letter.

Check out Bruce Berkowitz latest stock trades

Bruce Berkowitz Comments on Sears Holdings - Aug 03, 2012

From Bruce Berkowitz's second-quarter letter:

Sears Holdings (SHLD) (11% of the Fund) is one of the largest corporate real estate organizations in the world, with a portfolio of retail locations that is second to none. Generally Accepted Accounting Principles ("GAAP") mandate valuing their real estate at the lower of cost or market. GAAP would force the Dutch settlers to value Manhattan today at the 1626 purchase price of $23.70. The company's reported book value of $43 understates real values.
Check out Bruce Berkowitz latest stock trades

Top Ranked Articles about Sears Holdings Corporation

Francis Chou Comments on Sears Holdings
We believe that Sears Holdings (SHLD) is a misunderstood story. There are many moving parts but we believe Sears Holdings’ intrinsic value lies in its real estate assets. It also has other valuable assets such as Lands’ End, Kenmore, Craftsman and Diehard. Being a traditional department store has become a tough business during the last decade but, according to management, Sears is transitioning its historic focus on running a brick and mortar department store into a business that provides and delivers value by serving its members in the manner most convenient for them: whether in store, at home or through digital devices. The value of its real estate allows Eddie Lampert, the controlling shareholder and CEO, the time and money to effect the changes. If the transformation does not work out as expected, we believe the real estate values are high enough that we would not lose money in our investment at current prices after netting out all liabilities. Read more...
Bruce Berkowitz Comments on Sears Holdings
Headlines shout of Sears (SHLD)' disastrous 2013 loss of $12 per share. A longer history shows that since the merger of Sears with Kmart, about 9 years ago, s ears has distributed over $66 of cash per share via buybacks and spin-offs and has paid down $27 per share of a pension liability that is no different, in our view, from debt. Fairholme research estimates that the fair value of s ears' net assets exceeds $150 per share. If our research is accurate, we expect s ears' market price of $38 to increase to this value over time. Read more...
Edward Lampert Cuts Sears to Meet Redemptions, Still Confident
Though Edward Lampert insists cutting his stake in Sears had nothing to do with a loss of faith in the company, news of the reduction sent shares plunging more than 20% this week. The hedge fund manager and chief executive of Sears Holding (SHLD) cut back the scope of his ownership in the company from 55.4% to 48.4%, according to a regulatory filing released Tuesday. Read more...
Real-Time Reductions with Edward Lampert, Chuck Royce and Howard Marks
According to GuruFocus Real Time Picks, three gurus just made reductions to major holdings in Anaren Inc. (ANEN), Star Bulk Carriers Corp. (SBLK) and Sears Holdings Corporation (SHLD). Here are the trade details: Read more...
Down a Billion - Lampert Sells in Review, AutoNation Update
A man of many hats and top investor Guru Edward “Eddie” Lampert also manages his firm ESL Investments. His third quarter portfolio lists 4 stocks at a total value of $2.99 billion, down almost a billion since April 2013. His quarter-over-quarter turnover is 0%. Read more...
Sears Makeover Relevant to Online Shoppers
With a finger on the pulse of today’s shopper, Guru Edward Lampert has a gift for making retailers relevant to the ever-changing consumer. His retail re-visioning of Sears and Kmart is starting to pay off. Sears Holdings Corporation’s online businesses for Sears and Kmart grew 20% in the second quarter of 2013, year-over-year. Lampert’s brainchild, the Sears ‘Shop Your Way’ membership program, generated more than 65% of the revenues at Sears Domestic and Kmart during the second quarter, compared to around 55% in the same quarter a year ago. But despite e-commerce growth, Sears Holdings reported an operating loss of $51 million in the second quarter of 2013, after a loss of $103 million in the second quarter of 2012. Read more...
Berkowitz and Lampert – Luck, Concentration, Sears and Other Top Holdings
A great bit of investing advice, Bruce Berkowitz once said, “Always assume you will have bad luck.” With several of their top holdings way up over 12 months, gurus Bruce Berkowitz and Edward Lampert have both had good luck and bad, and they both run concentrated portfolios. Guru investor Bruce Berkowitz, founder of Fairholme Capital Management, has a reputation for concentrating a portfolio. Read more...
Savant Edward Lampert, Top Six Holdings - Great Gains Despite One Bad Apple
Here’s a look at the portfolio of investing Guru Edward Lampert, Number 68 on the Forbes list of 400 Richest Americans. Lampert wears multiple crowns as the founder of his own hedge fund ESL Investments and as the Chairman and CEO of Sears Holdings. Lampert’s reputation as a savant investor and creative mastermind has grown to near-mythic proportion. With super-gains like his top positions reveal, Lampert can afford one bad apple in the “Orchard.” Lampert is the matchmaker behind the Sears and Kmart union, which ultimately produced two spin-offs Sears Hometown & Outlet Stores, and the problem child, Orchard Supply Hardware. The ESL Investments portfolio is heavily weighted with consumer cyclical, reflecting that Guru Lampert reads the pulse of the people, how we live, what we drive, and what we wear. Read more...
Lampert Chops Down Orchard by 32% - OSH Gets 60-Day Extension
Sears CEO and investor savant Edward Lampert is still holding on to Orchard Supply Hardware (OSH), his spin-off brainchild, but he just reduced his position again after six micro slices so far in 2013. This time Lampert swung the ax and chopped OSH by 32.24% in the price range of $1.84 per share, as of April 29, 2013. Lampert currently holds 569,094 shares after the trade. The current share price of OSH is $1.84. Read more...
Countdown for Orchard – Edward Lampert Cuts OSH, Sears Backstory
According to the GuruFocus 52-week low screener, Orchard Supply Hardware (OSH) is at a 52-week low, and 93.3% off its high. As Orchard Supply Hardware (OSH) faces possible default on a loan payment, top stakeholder Guru Edward Lampert, CEO of Sears Holding Corporation and founder of ESL Investments, reduced his Orchard Supply Hardware (OSH) position again by 16.25%, with remaining shares at 839,867, as of April 24, 2013. He traded at an average price of $1.55. The current price is $1.45, with a change from average down 6%. Seeking an out-of-court restructuring, Orchard Supply’s lawyers and advisers must strike a deal with lenders by May 1. Read more...

Ratios

vs
industry
vs
history
P/B 2.40
SHLD's P/B is ranked higher than
55% of the 1036 Companies
in the Global Department Stores industry.

( Industry Median: 1.70 vs. SHLD: 2.40 )
SHLD' s 10-Year P/B Range
Min: 0.38   Max: 3.64
Current: 2.4

0.38
3.64
P/S 0.11
SHLD's P/S is ranked higher than
96% of the 1100 Companies
in the Global Department Stores industry.

( Industry Median: 0.73 vs. SHLD: 0.11 )
SHLD' s 10-Year P/S Range
Min: 0.08   Max: 0.73
Current: 0.11

0.08
0.73
EV-to-EBIT 500.00
SHLD's EV-to-EBIT is ranked lower than
81% of the 965 Companies
in the Global Department Stores industry.

( Industry Median: 13.30 vs. SHLD: 500.00 )
SHLD' s 10-Year EV-to-EBIT Range
Min: 1.9   Max: 71.5
Current: 500

1.9
71.5

Valuation & Return

vs
industry
vs
history
Price/Median PS Value 0.50
SHLD's Price/Median PS Value is ranked higher than
93% of the 1025 Companies
in the Global Department Stores industry.

( Industry Median: 1.00 vs. SHLD: 0.50 )
SHLD' s 10-Year Price/Median PS Value Range
Min: 0.52   Max: 2.45
Current: 0.5

0.52
2.45
Earnings Yield (Greenblatt) 0.20
SHLD's Earnings Yield (Greenblatt) is ranked lower than
74% of the 983 Companies
in the Global Department Stores industry.

( Industry Median: 7.40 vs. SHLD: 0.20 )
SHLD' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 51.9
Current: 0.2

0.2
51.9
Forward Rate of Return (Yacktman) -1.54
SHLD's Forward Rate of Return (Yacktman) is ranked higher than
55% of the 724 Companies
in the Global Department Stores industry.

( Industry Median: 10.57 vs. SHLD: -1.54 )
SHLD' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -10.2   Max: 27.3
Current: -1.54

-10.2
27.3

Business Description

Industry: Retail - Apparel & Specialty » Department Stores
Compare:M, DFIHY, SRHGY, JWN, KSS » details
Traded in other countries:SEE.Germany
Sears Holdings Corporation is the parent company of Kmart Holding Corporation ("Kmart") and Sears, Roebuck and Co. ("Sears"). The Company was formed as a Delaware corporation in 2004 in connection with the merger of Kmart and Sears on March 24, 2005. The Company operates a national network of stores with 2,019 full-line and 54 specialty retail stores in the United States operating through Kmart and Sears and 475 full-line and specialty retail stores in Canada operating through Sears Canada Inc., a 51%-owned subsidiary. The Company also operates a number of websites under the sears.com and kmart.com banners which offer more than 60 million products and provide cross-channel transactions such as buy online/pick-up in store; buy in store/ship to home; and buy online, return in store. The Company also operates SHOP YOUR WAY, a social shopping website The Company is a home appliance retailer and as well as tools, lawn and garden, fitness equipment and automotive repair and maintenance. It also maintains apparel offerings. The Company operates in three reportable segments: Kmart, Sears Domestic and Sears Canada. The Company's business is subject to highly competitive conditions. It competes with a wide variety of retailers, including other department stores, discounters, home improvement stores, consumer electronics dealers, auto service providers, specialty retailers, wholesale clubs, as well as many other retailers operating on a national, regional or local level in the U.S. and Canada. Online and catalog businesses, which handle similar lines of merchandise, also compete with it.

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