NasdaqGS:MIK

Stock Analysis Report

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Executive Summary

The Michaels Companies, Inc. owns and operates arts and crafts specialty retail stores for hobbyist and do-it-yourself home decorators in the United States and Canada. More Details


Snowflake Analysis

Undervalued with moderate growth potential.


Similar Companies

Share Price & News

How has Michaels Companies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MIK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-14.1%

MIK

-8.1%

US Specialty Retail

-5.3%

US Market


1 Year Return

-6.7%

MIK

12.8%

US Specialty Retail

10.4%

US Market

Return vs Industry: MIK underperformed the US Specialty Retail industry which returned 15.3% over the past year.

Return vs Market: MIK underperformed the US Market which returned 12% over the past year.


Shareholder returns

MIKIndustryMarket
7 Day-14.1%-8.1%-5.3%
30 Day-22.5%-6.1%-2.1%
90 Day13.0%4.5%1.7%
1 Year-6.7%-6.7%13.9%12.8%12.9%10.4%
3 Year-57.8%-57.8%73.5%65.9%34.3%25.4%
5 Year-65.5%-65.5%54.6%42.6%73.7%54.3%

Price Volatility Vs. Market

How volatile is Michaels Companies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Michaels Companies undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MIK ($8.11) is trading below our estimate of fair value ($22.52)

Significantly Below Fair Value: MIK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MIK is good value based on its PE Ratio (8.6x) compared to the US Specialty Retail industry average (20x).

PE vs Market: MIK is good value based on its PE Ratio (8.6x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: MIK is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: MIK has negative assets, so we can't compare its PB Ratio to the US Specialty Retail industry average.


Next Steps

Future Growth

How is Michaels Companies forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

25.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MIK's forecast earnings growth (25.2% per year) is above the savings rate (2.2%).

Earnings vs Market: MIK's earnings (25.2% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MIK's revenue (3.1% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: MIK's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MIK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Michaels Companies performed over the past 5 years?

-8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MIK has a large one-off loss of $121.2M impacting its August 1 2020 financial results.

Growing Profit Margin: MIK's current net profit margins (2.8%) are lower than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: MIK's earnings have declined by 8.8% per year over the past 5 years.

Accelerating Growth: MIK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MIK had negative earnings growth (-57.5%) over the past year, making it difficult to compare to the Specialty Retail industry average (6%).


Return on Equity

High ROE: MIK's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Michaels Companies's financial position?


Financial Position Analysis

Short Term Liabilities: MIK has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MIK has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MIK has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MIK's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: MIK's debt is well covered by operating cash flow (29.7%).

Interest Coverage: MIK's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


Next Steps

Dividend

What is Michaels Companies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MIK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MIK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MIK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MIK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MIK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Ashley Buchanan (46 yo)

0.42

Tenure

US$12,192,765

Compensation

Mr. Ashley Buchanan has been Chief Executive Officer at The Michaels Companies, Inc. since April 1, 2020. He has been Director of The Michaels Companies, Inc. since January 6, 2020 and served as its Presid ...


CEO Compensation Analysis

Compensation vs Market: Ashley's total compensation ($USD12.19M) is above average for companies of similar size in the US market ($USD2.96M).

Compensation vs Earnings: Insufficient data to compare Ashley's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Ashley Buchanan
President0.42yrUS$12.19mno data
Mark Cosby
Senior Advisor & Director1.58yrsUS$6.51m0.095%
$ 1.1m
John Koch
Executive Vice President of Stores & Development2.42yrsUS$1.44m0.019%
$ 229.6k
Vidya Jwala
Executive Officer0.83yrUS$3.39mno data
Michael Diamond
Executive VP & CFOno datano datano data
James Sullivan
Chief Accounting Officer6.17yrsno data0.023%
$ 274.8k
Elaine Locke
VP of Investor Relations & Treasurerno datano datano data
Tim Cheatham
Executive VP0.42yrno datano data
Holly Shaskey-Platek
Executive VP & Chief Human Resources Officer2.75yrsno datano data
Dennis Mullahy
Executive VP of Information Technology6.83yrsUS$1.29m0%
$ 0
Lance Weibye
Senior Vice President of Real Estate & Development5.75yrsno datano data
Idalia Farrajota
Senior Vice President of Merchandising5yrsno datano data

2.6yrs

Average Tenure

55yo

Average Age

Experienced Management: MIK's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ashley Buchanan
President0.42yrUS$12.19mno data
Mark Cosby
Senior Advisor & Director1.58yrsUS$6.51m0.095%
$ 1.1m
Joshua Bekenstein
Independent Director14yrsno datano data
Matthew Levin
Independent Director14yrsUS$200.00k0.011%
$ 129.0k
Beryl Raff
Independent Director6yrsUS$190.00k0.028%
$ 333.0k
Monte Ford
Independent Director5yrsUS$205.00k0.019%
$ 222.8k
John Mahoney
Independent Director7yrsUS$215.00k0.027%
$ 320.3k
James Quella
Independent Chairman1.42yrsUS$331.07k0.022%
$ 265.1k
Karen Kaplan
Independent Director5.42yrsUS$212.50k0.020%
$ 240.3k
Ryan Cotton
Independent Director2.83yrsno datano data

5.2yrs

Average Tenure

60.5yo

Average Age

Experienced Board: MIK's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Michaels Companies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Michaels Companies, Inc.
  • Ticker: MIK
  • Exchange: NasdaqGS
  • Founded: 1983
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: US$1.196b
  • Shares outstanding: 147.44m
  • Website: https://www.michaels.com

Number of Employees


Location

  • The Michaels Companies, Inc.
  • 8000 Bent Branch Drive
  • Irving
  • Texas
  • 75063
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MIKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2014
MIMDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2014

Biography

The Michaels Companies, Inc. owns and operates arts and crafts specialty retail stores for hobbyist and do-it-yourself home decorators in the United States and Canada. It operates Michaels stores that offe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 01:18
End of Day Share Price2020/10/30 00:00
Earnings2020/08/01
Annual Earnings2020/02/01


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.