NYSE:BIG

Stock Analysis Report

Executive Summary

Big Lots, Inc., through its subsidiaries, operates as a retailer in the United States.

Snowflake

Fundamentals

Very undervalued average dividend payer.


Similar Companies

Share Price & News

How has Big Lots's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-7.6%

BIG

1.7%

US Multiline Retail

1.8%

US Market


1 Year Return

-48.1%

BIG

16.7%

US Multiline Retail

7.3%

US Market

Return vs Industry: BIG underperformed the US Multiline Retail industry which returned 16.7% over the past year.

Return vs Market: BIG underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

BIGIndustryMarket
7 Day-7.6%1.7%1.8%
30 Day-7.8%4.5%-0.7%
90 Day-21.7%13.2%0.06%
1 Year-45.8%-48.1%19.7%16.7%9.7%7.3%
3 Year-49.9%-54.1%58.2%46.4%46.3%36.9%
5 Year-49.2%-55.0%57.5%37.5%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Big Lots undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BIG ($20.51) is trading below our estimate of fair value ($49.92)

Significantly Undervalued: BIG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BIG is good value based on its PE Ratio (6.6x) compared to the Multiline Retail industry average (12.9x).

PE vs Market: BIG is good value based on its PE Ratio (6.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: BIG is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: BIG is good value based on its PB Ratio (1.2x) compared to the US Multiline Retail industry average (1.4x).


Next Steps

Future Growth

How is Big Lots forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

18.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BIG's forecast earnings growth (18% per year) is above the savings rate (2.7%).

Earnings vs Market: BIG's earnings (18% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: BIG's revenue (2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BIG's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Big Lots performed over the past 5 years?

3.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BIG's earnings have grown by 3.1% per year over the past 5 years.

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

Earnings vs Industry: BIG had negative earnings growth (-25.2%) over the past year, making it difficult to compare to the Multiline Retail industry average (-14.9%).


Return on Equity

High ROE: BIG's Return on Equity (19.1%) is considered low.


Return on Assets

ROA vs Industry: BIG's Return on Assets is below or equal to the Multiline Retail industry average last year.


Return on Capital Employed

ROCE Improving: BIG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Big Lots's financial position?


Financial Position Analysis

Short Term Liabilities: BIG's short term assets ($1.0B) exceeds its short term liabilities ($951.4M)

Long Term Liabilities: BIG's short term assets (1.0B) do not cover its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: BIG's debt to equity ratio (72.6%) is considered high

Reducing Debt: BIG's debt to equity ratio has increased from 7.5% to 72.6% over the past 5 years.

Debt Coverage: BIG's debt is well covered by operating cash flow (60.2%).

Interest Coverage: BIG's interest payments on its debt are well covered by EBIT (15.4x coverage).


Balance Sheet

Inventory Level: BIG has a high level of physical assets or inventory.

Debt Coverage by Assets: BIG's debt is covered by short term assets (assets are 2.224100x debt).


Next Steps

Dividend

What is Big Lots's current dividend yield, its reliability and sustainability?

5.85%

Current Dividend Yield


Dividend Yield vs Market

company5.9%marketbottom25%1.5%markettop25%3.7%industryaverage2.4%forecastin3Years6.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BIG's dividend (5.85%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: BIG's dividend (5.85%) is in the top 25% of dividend payers in the US market (3.72%)

Stable Dividend: Whilst dividend payments have been stable, BIG has been paying a dividend for less than 10 years.

Growing Dividend: BIG's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.7%), BIG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BIG's dividends in 3 years are forecast to be well covered by earnings (33.7% payout ratio).


Next Steps

Management

What is the CEO of Big Lots's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Bruce Thorn (52yo)

1.1yrs

Tenure

US$4,986,177

Compensation

Mr. Bruce K. Thorn has been Chief Executive Officer, President and Director of Big Lots, Inc. since September, 2018. He had been President of Tailored Brands, Inc. since March 22, 2017 until 2018 and its C ...


CEO Compensation Analysis

Compensation vs. Market: Bruce has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

2.9yrs

Average Tenure

54yo

Average Age

Experienced Management: BIG's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

59yo

Average Age

Experienced Board: BIG's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$250,38517 Dec 18
Bruce Thorn
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares8,500
Max PriceUS$29.46

Ownership Breakdown


Management Team

  • Lisa Bachmann (58yo)

    Executive VP and Chief Merchandising & Operating Officer

    • Tenure: 4.2yrs
    • Compensation: US$4.29m
  • Rocky Robins (55yo)

    Executive VP

    • Tenure: 4.4yrs
    • Compensation: US$1.94m
  • Bruce Thorn (52yo)

    CEO, President & Director

    • Tenure: 1.1yrs
    • Compensation: US$4.99m
  • Nick Padovano (55yo)

    Senior Vice President of Store Operations

    • Tenure: 0yrs
  • Jonathan Ramsden (54yo)

    Executive VP

    • Tenure: 0.2yrs
  • Mike Schlonsky (52yo)

    Executive Vice President of Human Resources

    • Tenure: 4.2yrs
    • Compensation: US$2.27m
  • Andy Regrut

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Stephen Haffer (53yo)

    Senior VP & Chief Customer Officer

    • Tenure: 1.7yrs
  • Andrej Mueller

    Executive Vice President of Business Strategy

    • Tenure: 0yrs

Board Members

  • Christopher McCormick (63yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$219.34k
  • Marla Gottschalk (58yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$309.20k
  • Cindie Jamison (59yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$314.98k
  • Bruce Thorn (52yo)

    CEO, President & Director

    • Tenure: 1.1yrs
    • Compensation: US$4.99m
  • Nancy Reardon (66yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$299.58k
  • Jeffrey Berger (69yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$278.98k
  • James Chambers (62yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: US$427.48k
  • Wendy Schoppert (53yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$280.68k
  • Sebastian DiGrande (51yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$247.47k

Company Information

Big Lots, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Big Lots, Inc.
  • Ticker: BIG
  • Exchange: NYSE
  • Founded: 1967
  • Industry: General Merchandise Stores
  • Sector: Retail
  • Market Cap: US$800.211m
  • Shares outstanding: 39.02m
  • Website: https://www.biglots.com

Number of Employees


Location

  • Big Lots, Inc.
  • 4900 East Dublin Granville Road
  • Columbus
  • Ohio
  • 43081
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BIGNYSE (New York Stock Exchange)YesCommon SharesUSUSDJun 1985
4B3DB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1985
0HN5LSE (London Stock Exchange)YesCommon SharesGBUSDJun 1985

Biography

Big Lots, Inc., through its subsidiaries, operates as a retailer in the United States. The company offers products under various merchandising categories, such as furniture category that includes upholster ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 23:32
End of Day Share Price2019/10/18 00:00
Earnings2019/08/03
Annual Earnings2019/02/02


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.