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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 : 7/10

vs
industry
vs
history
Cash to Debt 210.94
OSTK's Cash to Debt is ranked higher than
77% of the 899 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.93 vs. OSTK: 210.94 )
Ranked among companies with meaningful Cash to Debt only.
OSTK' s 10-Year Cash to Debt Range
Min: 0.47  Med: 4.23 Max: No Debt
Current: 210.94
Equity to Asset 0.42
OSTK's Equity to Asset is ranked lower than
59% of the 847 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.47 vs. OSTK: 0.42 )
Ranked among companies with meaningful Equity to Asset only.
OSTK' s 10-Year Equity to Asset Range
Min: -0.03  Med: 0.25 Max: 0.8
Current: 0.42
-0.03
0.8
Interest Coverage 305.72
OSTK's Interest Coverage is ranked higher than
64% of the 582 Companies
in the Global Specialty Retail industry.

( Industry Median: 41.63 vs. OSTK: 305.72 )
Ranked among companies with meaningful Interest Coverage only.
OSTK' s 10-Year Interest Coverage Range
Min: 2.31  Med: 15.03 Max: 305.72
Current: 305.72
2.31
305.72
F-Score: 4
Z-Score: 6.12
M-Score: -3.34
WACC vs ROIC
12.00%
122.26%
WACC
ROIC
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 : 5/10

vs
industry
vs
history
Operating margin (%) 0.62
OSTK's Operating margin (%) is ranked lower than
76% of the 900 Companies
in the Global Specialty Retail industry.

( Industry Median: 3.60 vs. OSTK: 0.62 )
Ranked among companies with meaningful Operating margin (%) only.
OSTK' s 10-Year Operating margin (%) Range
Min: -84.03  Med: -1.66 Max: 1.37
Current: 0.62
-84.03
1.37
Net-margin (%) 0.46
OSTK's Net-margin (%) is ranked lower than
72% of the 900 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.40 vs. OSTK: 0.46 )
Ranked among companies with meaningful Net-margin (%) only.
OSTK' s 10-Year Net-margin (%) Range
Min: -83.5  Med: -1.84 Max: 6.47
Current: 0.46
-83.5
6.47
ROE (%) 5.68
OSTK's ROE (%) is ranked lower than
55% of the 884 Companies
in the Global Specialty Retail industry.

( Industry Median: 7.56 vs. OSTK: 5.68 )
Ranked among companies with meaningful ROE (%) only.
OSTK' s 10-Year ROE (%) Range
Min: -150.65  Med: -21.93 Max: 180.01
Current: 5.68
-150.65
180.01
ROA (%) 2.32
OSTK's ROA (%) is ranked lower than
57% of the 905 Companies
in the Global Specialty Retail industry.

( Industry Median: 3.21 vs. OSTK: 2.32 )
Ranked among companies with meaningful ROA (%) only.
OSTK' s 10-Year ROA (%) Range
Min: -52.98  Med: -6.21 Max: 33.91
Current: 2.32
-52.98
33.91
ROC (Joel Greenblatt) (%) 23.67
OSTK's ROC (Joel Greenblatt) (%) is ranked higher than
64% of the 902 Companies
in the Global Specialty Retail industry.

( Industry Median: 13.96 vs. OSTK: 23.67 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
OSTK' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -305.84  Med: -39.88 Max: 71.09
Current: 23.67
-305.84
71.09
Revenue Growth (3Y)(%) 10.70
OSTK's Revenue Growth (3Y)(%) is ranked higher than
78% of the 725 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.80 vs. OSTK: 10.70 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
OSTK' s 10-Year Revenue Growth (3Y)(%) Range
Min: -4.1  Med: 9.20 Max: 96.7
Current: 10.7
-4.1
96.7
» OSTK's 10-Y Financials

Financials


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

» Details

Guru Trades

Q3 2014

OSTK Guru Trades in Q3 2014

Francis Chou 582,271 sh (unchged)
Prem Watsa 3,184,677 sh (unchged)
Steven Cohen Sold Out
Paul Tudor Jones Sold Out
Jim Simons 291,200 sh (-52.93%)
» More
Q4 2014

OSTK Guru Trades in Q4 2014

Paul Tudor Jones 11,510 sh (New)
Chou RRSP Fund 151,976 sh (unchged)
Francis Chou 582,271 sh (unchged)
Prem Watsa 3,184,677 sh (unchged)
Prem Watsa 3,184,677 sh (unchged)
Jim Simons 203,900 sh (-29.98%)
» More
Q1 2015

OSTK Guru Trades in Q1 2015

Jim Simons 258,500 sh (+26.78%)
Prem Watsa 3,184,677 sh (unchged)
Francis Chou 582,271 sh (unchged)
Paul Tudor Jones Sold Out
» More
Q2 2015

OSTK Guru Trades in Q2 2015

Jim Simons 270,780 sh (+4.75%)
Prem Watsa 3,184,677 sh (unchged)
Francis Chou 582,271 sh (unchged)
» More
» Details

Insider Trades

Latest Guru Trades with OSTK

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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Guru Investment Theses on Overstock.com Inc

Francis Chou Comments on Overstock.com - Mar 11, 2014

Overstock.com (NASDAQ:OSTK) was the largest contributor to the positive performance of the Fund. The stock increased in value to $30.79 as of December 31, 2013, up from $14.31 as of December 31, 2012. At the beginning of the year, we had 875,931 shares, comprising just over 30% of the portfolio. As the price of OSTK has now risen significantly and is trading closer to its intrinsic value, we have drastically reduced our position. We held only 15,000 shares as of December 31, 2013.





From Franis Chou's 2013 letter to shareholders.



Check out Francis Chou latest stock trades

Francis Chou Comments on Overstock.com - Sep 05, 2013

Overstock.com (NASDAQ:OSTK) was the largest contributor to the positive performance of the Fund. The stock increased in value to $28.20 as at June 30, 2013, up from $13.95 as at December 31, 2012. It is interesting to note that a year ago, on June 29, 2012, it was trading as low as $6.91 per share. Generally, when prices hit a new low, our reaction is to check whether our evaluation of the company's intrinsic value is accurate enough. If it is accurate enough, we either sit put or buy more. Since we already had a fair amount of OSTK in the portfolio, we did not add any more but were comfortable with our investment in the company. There are many ways of evaluating a company and one of them is to check recent transactions within its industry which may provide a sense of its intrinsic value. For example, in 2009 Amazon bought Zappos, a company that is similar to OSTK but different in many ways, at close to one times revenue. At one times revenue, OSTK's intrinsic value is more than $40 per share whereas its stock price closed on December 31, 2012 at $13.95 per share. One important caveat: This type of comparison is fraught with danger and should be viewed as just a frame of reference. At the end of the day, it is OSTK's earning power or its future potential earnings based on its revenue growth (or lack of it) that will determine its intrinsic value. So, be extremely cautious when using only revenue as a basis for estimating intrinsic value. It must be substantiated by earnings. If the earning power is not there, then a company's value is strictly the value of its liquidated assets minus its liabilities. Under that scenario, OSTK would be worth almost nothing.

If you take a cursory glance of OSTK prices over the last 18 months, it may appear that we had a huge winner in OSTK, but there is more to the story. The investment in OSTK did not pan out as expected. When you are investing, the time value of money must be given serious consideration. We first invested in OSTK in 2006 and since then, the results have been positive but sub-par to say the least. Looking back, we paid too much for it and the intrinsic value that we estimated seven years ago was too high. Since we are a patient investor and can hold on to stocks for seven years or more, it is imperative that the intrinsic value of the company we invest in grows satisfactorily. In that regard, OSTK's growth in intrinsic value was anemic at best.

We held on to the stock because there were several positives to the company. Management has been quick to admit that it made many missteps along the way, and the corrective actions it took has put the company back on the right path. We especially like OSTK's fulfillment partner business, through which they sell merchandise of other retailers, cataloguers or manufacturers via their website, which accounts for approximately 80% of its revenue. Further, it is debt free after taking into account the cash on its balance sheet, management over the past few years have been buying shares and the founder owns a huge chunk of the company.

In the end we made some money but not to the degree we expected. And, because the price of OSTK has now risen significantly and is trading closer to its intrinsic value, we have drastically reduced our position.

From Francis Chou's semi-annual report 2013.

Check out Francis Chou latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 65.78
OSTK's P/E(ttm) is ranked lower than
88% of the 675 Companies
in the Global Specialty Retail industry.

( Industry Median: 20.90 vs. OSTK: 65.78 )
Ranked among companies with meaningful P/E(ttm) only.
OSTK' s 10-Year P/E(ttm) Range
Min: 4.4  Med: 30.76 Max: 162.68
Current: 65.78
4.4
162.68
Forward P/E 37.45
OSTK's Forward P/E is ranked lower than
91% of the 383 Companies
in the Global Specialty Retail industry.

( Industry Median: 14.66 vs. OSTK: 37.45 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 67.20
OSTK's PE(NRI) is ranked lower than
88% of the 669 Companies
in the Global Specialty Retail industry.

( Industry Median: 20.80 vs. OSTK: 67.20 )
Ranked among companies with meaningful PE(NRI) only.
OSTK' s 10-Year PE(NRI) Range
Min: 4.4  Med: 30.95 Max: 157.8
Current: 67.2
4.4
157.8
P/B 3.65
OSTK's P/B is ranked lower than
76% of the 854 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.73 vs. OSTK: 3.65 )
Ranked among companies with meaningful P/B only.
OSTK' s 10-Year P/B Range
Min: 2.66  Med: 9.91 Max: 73.03
Current: 3.65
2.66
73.03
P/S 0.31
OSTK's P/S is ranked higher than
73% of the 908 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.71 vs. OSTK: 0.31 )
Ranked among companies with meaningful P/S only.
OSTK' s 10-Year P/S Range
Min: 0.11  Med: 0.38 Max: 2.85
Current: 0.31
0.11
2.85
PFCF 29.17
OSTK's PFCF is ranked lower than
66% of the 466 Companies
in the Global Specialty Retail industry.

( Industry Median: 20.04 vs. OSTK: 29.17 )
Ranked among companies with meaningful PFCF only.
OSTK' s 10-Year PFCF Range
Min: 6.9  Med: 18.63 Max: 228.94
Current: 29.17
6.9
228.94
POCF 7.90
OSTK's POCF is ranked higher than
70% of the 627 Companies
in the Global Specialty Retail industry.

( Industry Median: 13.25 vs. OSTK: 7.90 )
Ranked among companies with meaningful POCF only.
OSTK' s 10-Year POCF Range
Min: 5.41  Med: 11.22 Max: 117.14
Current: 7.9
5.41
117.14
EV-to-EBIT 31.79
OSTK's EV-to-EBIT is ranked lower than
83% of the 717 Companies
in the Global Specialty Retail industry.

( Industry Median: 14.60 vs. OSTK: 31.79 )
Ranked among companies with meaningful EV-to-EBIT only.
OSTK' s 10-Year EV-to-EBIT Range
Min: -897  Med: -4.40 Max: 181.1
Current: 31.79
-897
181.1
Shiller P/E 24.11
OSTK's Shiller P/E is ranked lower than
60% of the 477 Companies
in the Global Specialty Retail industry.

( Industry Median: 20.61 vs. OSTK: 24.11 )
Ranked among companies with meaningful Shiller P/E only.
OSTK' s 10-Year Shiller P/E Range
Min: 18.76  Med: 29.65 Max: 860
Current: 24.11
18.76
860
Current Ratio 1.02
OSTK's Current Ratio is ranked lower than
78% of the 854 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.58 vs. OSTK: 1.02 )
Ranked among companies with meaningful Current Ratio only.
OSTK' s 10-Year Current Ratio Range
Min: 0.91  Med: 1.48 Max: 5.71
Current: 1.02
0.91
5.71
Quick Ratio 0.86
OSTK's Quick Ratio is ranked higher than
50% of the 854 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.87 vs. OSTK: 0.86 )
Ranked among companies with meaningful Quick Ratio only.
OSTK' s 10-Year Quick Ratio Range
Min: 0.76  Med: 1.14 Max: 4.37
Current: 0.86
0.76
4.37
Days Inventory 6.90
OSTK's Days Inventory is ranked higher than
95% of the 857 Companies
in the Global Specialty Retail industry.

( Industry Median: 81.94 vs. OSTK: 6.90 )
Ranked among companies with meaningful Days Inventory only.
OSTK' s 10-Year Days Inventory Range
Min: 7.98  Med: 13.33 Max: 53.53
Current: 6.9
7.98
53.53
Days Sales Outstanding 3.59
OSTK's Days Sales Outstanding is ranked higher than
77% of the 729 Companies
in the Global Specialty Retail industry.

( Industry Median: 13.13 vs. OSTK: 3.59 )
Ranked among companies with meaningful Days Sales Outstanding only.
OSTK' s 10-Year Days Sales Outstanding Range
Min: 2.58  Med: 4.72 Max: 27.81
Current: 3.59
2.58
27.81

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 3.75
OSTK's Price/Tangible Book is ranked lower than
71% of the 789 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.08 vs. OSTK: 3.75 )
Ranked among companies with meaningful Price/Tangible Book only.
OSTK' s 10-Year Price/Tangible Book Range
Min: 2.35  Med: 8.65 Max: 108.13
Current: 3.75
2.35
108.13
Price/Projected FCF 1.38
OSTK's Price/Projected FCF is ranked lower than
58% of the 503 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.17 vs. OSTK: 1.38 )
Ranked among companies with meaningful Price/Projected FCF only.
OSTK' s 10-Year Price/Projected FCF Range
Min: 1.16  Med: 1.56 Max: 35.64
Current: 1.38
1.16
35.64
Price/Median PS Value 0.80
OSTK's Price/Median PS Value is ranked higher than
70% of the 825 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.06 vs. OSTK: 0.80 )
Ranked among companies with meaningful Price/Median PS Value only.
OSTK' s 10-Year Price/Median PS Value Range
Min: 0.31  Med: 1.11 Max: 6.64
Current: 0.8
0.31
6.64
Price/Graham Number 3.44
OSTK's Price/Graham Number is ranked lower than
85% of the 572 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.46 vs. OSTK: 3.44 )
Ranked among companies with meaningful Price/Graham Number only.
OSTK' s 10-Year Price/Graham Number Range
Min: 0.8  Med: 4.07 Max: 9.22
Current: 3.44
0.8
9.22
Earnings Yield (Greenblatt) (%) 3.14
OSTK's Earnings Yield (Greenblatt) (%) is ranked lower than
67% of the 888 Companies
in the Global Specialty Retail industry.

( Industry Median: 5.50 vs. OSTK: 3.14 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
OSTK' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 0.6  Med: 3.70 Max: 9
Current: 3.14
0.6
9

Business Description

Industry: Retail - Apparel & Specialty » Specialty Retail
Compare:TSCO, AMZN, EBAY, FIVE, AZO » details
Traded in other countries:OVER.Germany,
Overstock.com Inc based in Salt Lake City, Utah, founded in 1997, is an online retailer offering branded name, non-branded name and closeout merchandise, including furniture, home decor, bedding and bath, housewares, jewelry and watches, apparel and designer accessories, electronics and computers, and sporting goods, among other products. The Company sells its products through three websites www.overstock.com, www.o.co and www.o.biz. The Company's first website was launched in March 1999. The Company offers approximately 491,000 non-books, magazine, CDs, DVDs and video game products and approximately 805,000 BMMG products. As of December 31, 2013, the Company fulfilled its order volume through its warehouse, which generally ships between 3,000 and 5,000 packages per day and up to approximately 6,000 orders per day during peak periods, using overlapping daily shifts. The Company has organized shopping business into two principal segments; a direct business and a fulfillment partner business. The fulfilment partner business sells merchandise of other retailers, cataloguers or manufacturers primarily through the Company's Website. The Company has relationships with approximately 2,400 third parties who supply approximately 488,000 non-BMMG products, as well as BMMG products, on website. These fulfillment partners perform operations such as order picking and shipping. The Company's Website Shopping section is organized into 25 main product lines; for the Home, Furniture, Bedding & Bath, Clothing & Shoes, Electronics, Jewelry, Watches, Sports & Outdoors, Luggage & Bags, Worldstock Fair Trade, Health & Beauty, Baby, Crafts & Sewing, Office, Gifts & Flowers, Toys & Hobbies, Pets, Main Street Revolution, Emergency Preparedness, As Seen on TV, Business Supplies, Cars, Sales and Promotions, Books Movies Music Games and Farmers Market. Worldstock Fair Trade is the Company's socially-responsible, online marketplace through which artisans can sell their products and gain access to a broader market. The Company also has specialty departments, such as Main Street Revolution and Farmers Market, which enable small businesses and individual producers to offer their products to a mass audience by selling on the Company's websites. The Company target its customers through online campaigns, such as advertising through keywords, product listing ads, display ads, search engines, affiliate marketing programs, social coupon websites, portals, banners, e-mail, direct mail and viral and social media campaigns. The Company also does brand advertising through television, radio, and print ads. The Company competes with other online retailers, traditional retailers and liquidation brokers. The Company also competes with companies that can be divided into categories such as liquidation e-tailers, online discount general retailers, private sale sites, online specialty retailers, and traditional general merchandise and specialty retailers and liquidators. The Com
» More Articles for OSTK

Headlines

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Overstock.com Shares E-Commerce Upside, Yet Not Receiving Valuation Premiums of Peers Sep 18 2014 
Francis Chou Comments on Overstock.com Mar 11 2014 
J.C. Penney Drops 10%, What Guru Investors Are Doing with the Stock Jan 08 2014 
Francis Chou Buys Sears Canada, Adds to Resolute Forest Products and MEGA Brands Sep 05 2013 
Francis Chou Comments on Overstock.com Sep 05 2013 

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