OSTK

Overstock.comNasdaqGM:OSTK Stock Report

Market Cap

US$3.2b

7D

7.1%

1Y

-1.7%

Updated

18 Sep, 2021

Data

Company Financials +
OSTK fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends0/6

OSTK Overview

Overstock.com, Inc. operates as an online retailer in the United States.

Rewards

Trading at 21.1% below our estimate of its fair value

Earnings are forecast to grow 4.43% per year

Became profitable this year

Risk Analysis

No risks detected for OSTK from our risk checks.

Overstock.com Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Overstock.com
Historical stock prices
Current Share PriceUS$73.75
52 Week HighUS$46.75
52 Week LowUS$112.30
Beta4.42
1 Month Change9.49%
3 Month Change-15.04%
1 Year Change-1.72%
3 Year Change172.14%
5 Year Change376.42%
Change since IPO466.00%

Recent News & Updates

Sep 13

Overstock And tZERO: Multiple Upcoming Catalysts Could Drive 75% Upside With Short Squeeze Fueling The Fire

Overstock is a transformed company. Focused 100% on its core E-Commerce business, in a massively growing market, that is generating substantial profits and cash flow. Overstock trades at a ~$2.9B market cap with an Enterprise Value (EV) of $2.4B. The company is trading under a .8x EV/Sales valuation based on forward (2022) revenue estimates. Overstock is taking market share from Wayfair as evidenced by the most recent quarterly report.  Overstock is valued at $2.9B and Wayfair is valued a $27B+ with a 1.6x EV/Sales. Overstock recently announced a $100M share repurchase (3% of outstanding shares at current values). The company has ~43M shares outstanding. ~5M shares are currently sold short. Over 75% of outstanding shares are held by institutions creating the potential for shorts being trapped and a massive squeeze without accounting for the extra potential fuel noted below. The major upcoming catalysts center around Overstock's equity ownership of its portfolio companies, specifically tZERO.  With a new tZERO CEO announcement expected in September, a massive expansion of digital security trading, and imminent capital raise shining a light on tZERO's valuation, these equity holdings appear to be completely being missed by the market.

Sep 07
Overstock.com, Inc.'s (NASDAQ:OSTK) Intrinsic Value Is Potentially 34% Above Its Share Price

Overstock.com, Inc.'s (NASDAQ:OSTK) Intrinsic Value Is Potentially 34% Above Its Share Price

Does the September share price for Overstock.com, Inc. ( NASDAQ:OSTK ) reflect what it's really worth? Today, we will...

Shareholder Returns

OSTKUS Online RetailUS Market
7D7.1%-1.0%-0.6%
1Y-1.7%1.3%33.8%

Return vs Industry: OSTK underperformed the US Online Retail industry which returned 1.3% over the past year.

Return vs Market: OSTK underperformed the US Market which returned 33.8% over the past year.

Price Volatility

Is OSTK's price volatile compared to industry and market?
OSTK volatility
OSTK Beta4.42
Industry Beta1.09
Market Beta1

Stable Share Price: OSTK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: OSTK's weekly volatility has decreased from 12% to 7% over the past year.

About the Company

FoundedEmployeesCEOWebsite
19971,750Jonathan Johnsonhttps://www.overstock.com

Overstock.com, Inc. operates as an online retailer in the United States. It operates through Retail, tZERO, and Medici Ventures segments. The company offers furniture; and home décor, including area rugs, bedding and bath, home improvement, kitchen and dining items, and other related products.

Valuation

Is Overstock.com undervalued compared to its fair value and its price relative to the market?

21.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OSTK ($73.75) is trading below our estimate of fair value ($93.43)

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


Price To Earnings Ratio

PE vs Industry: OSTK is good value based on its PE Ratio (33.4x) compared to the US Online Retail industry average (33.9x).

PE vs Market: OSTK is poor value based on its PE Ratio (33.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: OSTK is poor value based on its PEG Ratio (7.5x)


Price to Book Ratio

PB vs Industry: OSTK's PB Ratio (4.7x) is in line with the US Online Retail industry average.


Future Growth

How is Overstock.com forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OSTK's forecast earnings growth (4.4% per year) is above the savings rate (2%).

Earnings vs Market: OSTK's earnings (4.4% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: OSTK's earnings are forecast to grow, but not significantly.

Revenue vs Market: OSTK's revenue (8.6% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: OSTK's revenue (8.6% 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 OSTK's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Overstock.com performed over the past 5 years?

9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OSTK has high quality earnings.

Growing Profit Margin: OSTK became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: OSTK has become profitable over the past 5 years, growing earnings by 9.8% per year.

Accelerating Growth: OSTK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: OSTK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Online Retail industry (50%).


Return on Equity

High ROE: OSTK's Return on Equity (17.8%) is considered low.


Financial Health

How is Overstock.com's financial position?


Financial Position Analysis

Short Term Liabilities: OSTK's short term assets ($605.2M) exceed its short term liabilities ($371.8M).

Long Term Liabilities: OSTK's short term assets ($605.2M) exceed its long term liabilities ($53.7M).


Debt to Equity History and Analysis

Debt Level: OSTK's debt to equity ratio (6.3%) is considered satisfactory.

Reducing Debt: OSTK's debt to equity ratio has reduced from 19.8% to 6.3% over the past 5 years.

Debt Coverage: OSTK's debt is well covered by operating cash flow (300.6%).

Interest Coverage: OSTK's interest payments on its debt are well covered by EBIT (556.3x coverage).


Balance Sheet


Dividend

What is Overstock.com current dividend yield, its reliability and sustainability?

0.11%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate OSTK'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 OSTK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OSTK'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 OSTK'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?

1.6yrs

Average management tenure


CEO

Jonathan Johnson (55 yo)

2.08yrs

Tenure

US$1,527,318

Compensation

Mr. Jonathan E. Johnson, III, serves as Chief Executive Officer of Overstock.com, Inc. since September 23, 2019. He served as the President of Medici Ventures at Overstock.com Inc. since August 2016 until...


CEO Compensation Analysis

Compensation vs Market: Jonathan's total compensation ($USD1.53M) is below average for companies of similar size in the US market ($USD5.27M).

Compensation vs Earnings: Jonathan's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: OSTK's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: OSTK's board of directors are considered experienced (4.3 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

Overstock.com, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Overstock.com, Inc.
  • Ticker: OSTK
  • Exchange: NasdaqGM
  • Founded: 1997
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$3.172b
  • Shares outstanding: 43.01m
  • Website: https://www.overstock.com

Number of Employees


Location

  • Overstock.com, Inc.
  • 799 West Coliseum Way
  • Midvale
  • Utah
  • 84047
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.