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OSTK

Overstock.com NasdaqGM:OSTK Stock Report

Last Price

US$30.98

Market Cap

US$1.4b

7D

-0.2%

1Y

-54.0%

Updated

18 Aug, 2022

Data

Company Financials +
OSTK fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance1/6
Financial Health5/6
Dividends0/6

OSTK Stock Overview

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

Overstock.com Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Overstock.com
Historical stock prices
Current Share PriceUS$30.98
52 Week HighUS$111.28
52 Week LowUS$24.69
Beta3.7
1 Month Change11.04%
3 Month Change12.49%
1 Year Change-54.01%
3 Year Change46.69%
5 Year Change58.06%
Change since IPO137.76%

Recent News & Updates

Aug 11

Overstock: Shares Consolidate After A Wild Pandemic Period

The retail space gears up for what should be a wild earnings week ahead. One online-based retailer already issued disappointing quarterly results. Overstock.com is mired in a trading range as the company fundamentally shifts operations. Retail earnings continue next week with several household names reporting. One online direct marketing firm issued disappointing profits in late July. Overstock.com (OSTK) has an incredibly volatile stock price history, trading between $2.53 in March 2020 to $128.50 later that year, but it is simply rangebound right now. According to Bank of America Global Research, Overstock is a leading pure-play, online retailer in US home furnishings behind only Wayfair (W). The company has over 3,000 suppliers. Nearly 100% of sales are attributable to the US home furnishings segment, and the company has a small presence in Canada. OSTK has majority ownership of a blockchain investment fund, which was converted into a limited partnership in early 2021. The Utah-based $1.4 billion market cap Consumer Discretionary stock in the Internet & Direct Marketing Retail industry does not pay a dividend and features a high short interest of 16.2%, according to The Wall Street Journal. OSTK missed Q2 earnings estimates that were released on July 28. The current period is vital for retailers like Overstock that depend on a strong back-to-school and back-to-college spending season. Last month's quarterly report revealed disappointing web traffic data. Overstock Had Underwhelming Web Traffic BofA Global Research Overstock has exited from some unprofitable retail areas and has deconsolidated its blockchain business, per BofA. Taking that into account, earnings outlooks are better in the years ahead after recent volatility. BofA sees a sharp EPS decline this year before a strong rebound in 2023 and 2024, but they are less sanguine on the firm's profitability prospects compared with the Bloomberg consensus estimates. As such, the forecast P/E ratio is not compelling, but its EV/EBITDA multiple is seen as retreating to reasonable levels while free cash flow looks better next year. OSTK Earnings, Valuation, Free Cash Flow Forecasts BofA Global Research

Aug 10
Overstock.com's (NASDAQ:OSTK) Sluggish Earnings Might Be Just The Beginning Of Its Problems

Overstock.com's (NASDAQ:OSTK) Sluggish Earnings Might Be Just The Beginning Of Its Problems

Overstock.com, Inc.'s ( NASDAQ:OSTK ) recent weak earnings report didn't cause a big stock movement. Our analysis...

Jul 29
The Consensus EPS Estimates For Overstock.com, Inc. (NASDAQ:OSTK) Just Fell Dramatically

The Consensus EPS Estimates For Overstock.com, Inc. (NASDAQ:OSTK) Just Fell Dramatically

Today is shaping up negative for Overstock.com, Inc. ( NASDAQ:OSTK ) shareholders, with the analysts delivering a...

Jul 28

Overstock shares drop after Q2 miss on sinking active customers, orders delivered

Overstock (NASDAQ:OSTK) stock is falling 8% in Thursday premarket trading after the online retailer's Q2 results fell short of Wall Street expectations, highlighting a slump in active customers as well as orders delivered. During the second quarter, the company repurchased $34.9M of its common stock at an average price of $30.69, compared with $28.28 at Wednesday's close. Q2 revenue of $528.1M also fell under the consensus of $600.7M and slipped from $794.5M in Q2 of last year. Expenses totaled $109.6M at June 30, down from $138.3M in the year-ago period. Operating income for Q2 slid to $11.5M from $36.5M in Q2 a year ago. Active customers were 6.49M at June 30 vs. 9.17M at June 30, 2021. Q2 orders delivered came in at 2.14M compared with 3.74M in Q2 2021. Conference call at 8:30 a.m. ET. Earlier, Overstock Q2 Non-GAAP EPS of $0.19 misses by $0.23.

Shareholder Returns

OSTKUS Online RetailUS Market
7D-0.2%-0.5%1.4%
1Y-54.0%-23.4%-8.4%

Return vs Industry: OSTK underperformed the US Online Retail industry which returned -25.2% over the past year.

Return vs Market: OSTK underperformed the US Market which returned -9% over the past year.

Price Volatility

Is OSTK's price volatile compared to industry and market?
OSTK volatility
OSTK Average Weekly Movement11.9%
Online Retail Industry Average Movement12.2%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: OSTK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: OSTK's weekly volatility (12%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19971,350Jonathan Johnsonhttps://www.overstock.com

Overstock.com, Inc. operates as an online retailer in the United States. The company offers furniture, décor, area rug, bedding and bath, home improvement, outdoor, and kitchen and dining items. It provides its products and services through its internet websites comprising overstock.com, o.co, overstock.ca, and overstockgovernment.com.

Overstock.com Fundamentals Summary

How do Overstock.com's earnings and revenue compare to its market cap?
OSTK fundamental statistics
Market CapUS$1.42b
Earnings (TTM)US$71.23m
Revenue (TTM)US$2.37b

19.9x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OSTK income statement (TTM)
RevenueUS$2.37b
Cost of RevenueUS$1.82b
Gross ProfitUS$541.87m
Other ExpensesUS$470.64m
EarningsUS$71.23m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.56
Gross Margin22.90%
Net Profit Margin3.01%
Debt/Equity Ratio5.6%

How did OSTK perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is OSTK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OSTK?

Other financial metrics that can be useful for relative valuation.

OSTK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA12.5x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

How does OSTK's PE Ratio compare to its peers?

OSTK PE Ratio vs Peers
The above table shows the PE ratio for OSTK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average34.6x
NEGG Newegg Commerce
40.3xn/aUS$1.5b
RVLV Revolve Group
21.9x21.4%US$1.9b
QRTE.A Qurate Retail
12.8x39.3%US$1.6b
SEAT Vivid Seats
63.4x25.6%US$1.9b
OSTK Overstock.com
19.9x13.2%US$1.4b

Price-To-Earnings vs Peers: OSTK is good value based on its Price-To-Earnings Ratio (19.9x) compared to the peer average (34.6x).


Price to Earnings Ratio vs Industry

How does OSTK's PE Ratio compare vs other companies in the US Online Retail Industry?

Price-To-Earnings vs Industry: OSTK is good value based on its Price-To-Earnings Ratio (19.9x) compared to the US Online Retail industry average (20.2x)


Price to Earnings Ratio vs Fair Ratio

What is OSTK's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OSTK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.9x
Fair PE Ratio15.1x

Price-To-Earnings vs Fair Ratio: OSTK is expensive based on its Price-To-Earnings Ratio (19.9x) compared to the estimated Fair Price-To-Earnings Ratio (15.1x).


Share Price vs Fair Value

What is the Fair Price of OSTK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OSTK ($30.98) is trading below our estimate of fair value ($49.44)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Overstock.com forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


13.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OSTK's forecast earnings growth (13.2% per year) is above the savings rate (1.9%).

Earnings vs Market: OSTK's earnings (13.2% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: OSTK's revenue (3% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: OSTK's revenue (3% 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


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Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


52.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OSTK has a high level of non-cash earnings.

Growing Profit Margin: OSTK's current net profit margins (3%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: OSTK has become profitable over the past 5 years, growing earnings by 52.9% per year.

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

Earnings vs Industry: OSTK had negative earnings growth (-46.9%) over the past year, making it difficult to compare to the Online Retail industry average (-37.5%).


Return on Equity

High ROE: OSTK's Return on Equity (11.4%) is considered low.


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Financial Health

How is Overstock.com's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: OSTK's short term assets ($491.8M) exceed its short term liabilities ($253.6M).

Long Term Liabilities: OSTK's short term assets ($491.8M) exceed its long term liabilities ($44.6M).


Debt to Equity History and Analysis

Debt Level: OSTK has more cash than its total debt.

Reducing Debt: OSTK's debt to equity ratio has reduced from 27.3% to 5.6% over the past 5 years.

Debt Coverage: OSTK's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: OSTK's interest payments on its debt are well covered by EBIT (256.1x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.16%

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as OSTK has not reported any payouts.


Discover strong dividend paying companies

Management

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

2.5yrs

Average management tenure


CEO

Jonathan Johnson (56 yo)

2.92yrs

Tenure

US$2,855,412

Compensation

Mr. Jonathan E. Johnson, III, serves as an Independent Director at The J. M. Smucker Company since February 2022. He serves as a Director of Voatz, Inc. He serves as Chief Executive Officer of Overstock.co...


CEO Compensation Analysis

Compensation vs Market: Jonathan's total compensation ($USD2.86M) is below average for companies of similar size in the US market ($USD5.41M).

Compensation vs Earnings: Jonathan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: OSTK's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: OSTK's board of directors are considered experienced (9.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: OSTK insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.2%.


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
  • Implied Market Cap: US$1.416b
  • Shares outstanding: 45.70m
  • 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 Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.