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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 : 5/10

vs
industry
vs
history
Cash to Debt No Debt
OSTK's Cash to Debt is ranked higher than
100% of the 1083 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.50 vs. OSTK: No Debt )
OSTK' s 10-Year Cash to Debt Range
Min: 0.47   Max: No Debt
Current: No Debt

Equity to Asset 0.38
OSTK's Equity to Asset is ranked higher than
52% of the 1073 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.52 vs. OSTK: 0.38 )
OSTK' s 10-Year Equity to Asset Range
Min: -0.03   Max: 0.8
Current: 0.38

-0.03
0.8
F-Score: 6
Z-Score: 4.99
M-Score: 0.56
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
Revenue Growth (%) 4.80
OSTK's Revenue Growth (%) is ranked higher than
69% of the 786 Companies
in the Global Specialty Retail industry.

( Industry Median: 6.50 vs. OSTK: 4.80 )
OSTK' s 10-Year Revenue Growth (%) Range
Min: -4.1   Max: 96.7
Current: 4.8

-4.1
96.7
EBITDA Growth (%) -2.00
OSTK's EBITDA Growth (%) is ranked higher than
63% of the 671 Companies
in the Global Specialty Retail industry.

( Industry Median: 9.40 vs. OSTK: -2.00 )
OSTK' s 10-Year EBITDA Growth (%) Range
Min: -69.6   Max: 192.4
Current: -2

-69.6
192.4
EPS Growth (%) 83.40
OSTK's EPS Growth (%) is ranked higher than
97% of the 621 Companies
in the Global Specialty Retail industry.

( Industry Median: 11.60 vs. OSTK: 83.40 )
OSTK' s 10-Year EPS Growth (%) Range
Min: -41.4   Max: 92.7
Current: 83.4

-41.4
92.7
» OSTK's 10-Y Financials

Financials


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

» Details

Guru Trades

Q1 2013

OSTK Guru Trades in Q1 2013

Francis Chou 2,310,209 sh (unchged)
Prem Watsa 3,388,774 sh (unchged)
Jim Simons 359,100 sh (-7.09%)
» More
Q2 2013

OSTK Guru Trades in Q2 2013

Steven Cohen 12,773 sh (New)
Jim Simons 635,500 sh (+76.97%)
Prem Watsa 3,184,677 sh (-6.02%)
Francis Chou 1,086,725 sh (-52.96%)
Chou RRSP Fund 227,636 sh (-68.19%)
» More
Q3 2013

OSTK Guru Trades in Q3 2013

Prem Watsa 3,184,677 sh (unchged)
Steven Cohen Sold Out
Francis Chou 694,471 sh (-36.1%)
Jim Simons 345,500 sh (-45.63%)
» More
Q4 2013

OSTK Guru Trades in Q4 2013

Steven Cohen 9,888 sh (New)
Prem Watsa 3,184,677 sh (unchged)
Chou RRSP Fund -10,000 sh (unchged)
Jim Simons 309,100 sh (-10.54%)
Francis Chou 582,271 sh (-16.16%)
Chou RRSP Fund 151,976 sh (-33.24%)
» More
» Details

Insider Trades

Latest Guru Trades with OSTK



No Insider Trades Found!
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Guru Investment Theses on Overstock.com, Inc.

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

Overstock.com (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 (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

Francis Chou on Overstock (OSTK) - May 31, 2012

Francis Chou: OSTK has a market cap of ~$120-$130 million and $30-$40 million in excess cash. The legal expenses will likely fall and the firm's results will be much better without them. A good value.

Source: The Fairfax Financial Dinner summary by Norman Rothery of the Stingy Investor

Check out latest stock trades

Top Ranked Articles about Overstock.com, Inc.

Francis Chou Comments on Overstock.com
Overstock.com (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. Read more...
Francis Chou Comments on Overstock.com
Overstock.com (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 Read more...
Francis Chou Drastic Cut - Overstock Up 237% Over 12 Months
As of April 23, 2013, Francis Chou, fund manager of Chou America Mutual Funds, reduced his position in Overstock.com (OSTK) by 12.25%, with current shares after the trade at 1,891,587. Chou sold in the price range of $18.91 per share, for a 1.48% loss to his portfolio. OSTK’s current price is $1.75 with a change from average up 4%. This is Chou’s second reduction so far this year, and his fifth chop since last fall when the share price was around $15.5, according to GuruFocus Real Time Picks. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 5.00
OSTK's P/E(ttm) is ranked higher than
98% of the 887 Companies
in the Global Specialty Retail industry.

( Industry Median: 17.80 vs. OSTK: 5.00 )
OSTK' s 10-Year P/E(ttm) Range
Min: 4.76   Max: 162.68
Current: 5

4.76
162.68
P/B 3.55
OSTK's P/B is ranked lower than
61% of the 1036 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.71 vs. OSTK: 3.55 )
OSTK' s 10-Year P/B Range
Min: 2.84   Max: 73.03
Current: 3.55

2.84
73.03
P/S 0.34
OSTK's P/S is ranked higher than
78% of the 1107 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.74 vs. OSTK: 0.34 )
OSTK' s 10-Year P/S Range
Min: 0.11   Max: 2.85
Current: 0.34

0.11
2.85
PFCF 6.79
OSTK's PFCF is ranked higher than
91% of the 593 Companies
in the Global Specialty Retail industry.

( Industry Median: 19.33 vs. OSTK: 6.79 )
OSTK' s 10-Year PFCF Range
Min: 6.42   Max: 228.94
Current: 6.79

6.42
228.94
EV-to-EBIT 17.54
OSTK's EV-to-EBIT is ranked lower than
54% of the 968 Companies
in the Global Specialty Retail industry.

( Industry Median: 13.34 vs. OSTK: 17.54 )
OSTK' s 10-Year EV-to-EBIT Range
Min: 11.1   Max: 181.3
Current: 17.54

11.1
181.3
Shiller P/E 28.48
OSTK's Shiller P/E is ranked lower than
52% of the 541 Companies
in the Global Specialty Retail industry.

( Industry Median: 20.92 vs. OSTK: 28.48 )
OSTK' s 10-Year Shiller P/E Range
Min: 27.09   Max: 860
Current: 28.48

27.09
860

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 3.63
OSTK's Price/Tangible Book is ranked lower than
61% of the 937 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.00 vs. OSTK: 3.63 )
OSTK' s 10-Year Price/Tangible Book Range
Min: 2.35   Max: 108.13
Current: 3.63

2.35
108.13
Price/DCF (Projected) 1.42
OSTK's Price/DCF (Projected) is ranked higher than
57% of the 551 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.20 vs. OSTK: 1.42 )
OSTK' s 10-Year Price/DCF (Projected) Range
Min: 1.17   Max: 35.64
Current: 1.42

1.17
35.64
Price/Median PS Value 0.74
OSTK's Price/Median PS Value is ranked higher than
83% of the 1015 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.00 vs. OSTK: 0.74 )
OSTK' s 10-Year Price/Median PS Value Range
Min: 0.25   Max: 5.49
Current: 0.74

0.25
5.49
Price/Graham Number 0.89
OSTK's Price/Graham Number is ranked higher than
75% of the 775 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.40 vs. OSTK: 0.89 )
OSTK' s 10-Year Price/Graham Number Range
Min: 1.5   Max: 9.22
Current: 0.89

1.5
9.22
Earnings Yield (Greenblatt) 5.70
OSTK's Earnings Yield (Greenblatt) is ranked higher than
51% of the 983 Companies
in the Global Specialty Retail industry.

( Industry Median: 7.40 vs. OSTK: 5.70 )
OSTK' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.6   Max: 9
Current: 5.7

0.6
9
Forward Rate of Return (Yacktman) 1.94
OSTK's Forward Rate of Return (Yacktman) is ranked higher than
62% of the 727 Companies
in the Global Specialty Retail industry.

( Industry Median: 10.63 vs. OSTK: 1.94 )
OSTK' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -8.5   Max: 5.7
Current: 1.94

-8.5
5.7

Business Description

Industry: Retail - Apparel & Specialty » Specialty Retail
Compare:TSCO, AMZN, EBAY, FIVE, AZO » details
Traded in other countries:OVER.Germany
Overstock.com, Inc. was founded in 1997. The Company is an online retailer offering closeout and discount brand and non-brand name merchandise, including bed-and-bath goods, home décor, kitchenware, watches, jewelry, electronics and computers, sporting goods, apparel, and designer accessories, among other products. The Company sells these products through an internet website. The Company also sells books, magazines, CDs, DVDs and video games. It also operates as part of its Website an online auctions business—a marketplace for the buying and selling of goods and services- as well as online sites for listing cars and real estate for sale. The Company deals mainly in discount, replenishable, and closeout merchandise and it uses the Internet to aggregate both supply and demand to create an efficient marketplace for selling these products. It provides manufacturers with a one-stop liquidation channel to sell both large and small quantities of excess, closeout and replenishable inventory without disrupting sales through traditional channels, which can result in weaker pricing and decreased brand strength. The merchandise offered on its Website is from a variety of sources including well-known, brand-name manufacturers. It has organized its shopping business into two principal segments—a "direct" business and a "fulfillment partner" business. It currently offers approximately 251,000 non-BMMG products and approximately 637,000 BMMG products. Consumers and businesses are able to access and purchase its products 24 hours a day from the convenience of a computer, Internet-enabled mobile telephone or other Internet-enabled devices. Its team of customer service representatives assists customers by telephone, instant online chat and e-mail. The Company also derives revenue from other businesses advertising products or services on its Website. It has car, insurance and travel listing businesses through which cars, insurance and travel-related products and services may be purchased from vendors. Nearly all of its sales are to customers located in the United States. The Company competes with Amazon.com, Inc., eBay, Inc., Buy.com, Inc., BlueNile, BackCountry, Ross Stores, Inc., Wal-Mart Stores, Inc., TJX Companies, Inc., Costco Wholesale Corporation, J.C. Penney Company, Inc., Sears Holding Corporation, Target Corporation, Best Buy Co., Inc. and Barnes and Noble, Inc. The Company's services are subject to federal and state consumer protection laws including laws protecting the privacy of consumer information and regulations prohibiting unfair and deceptive trade practices.

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