OTCPK:FRED.Q

Stock Analysis Report

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Executive Summary

Fred's, Inc., together with its subsidiaries, sells general merchandise through its retail discount stores and full service pharmacies.


Snowflake Analysis

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-17.8%

FRED.Q

4.8%

US Multiline Retail

2.7%

US Market


1 Year Return

-98.5%

FRED.Q

19.0%

US Multiline Retail

9.1%

US Market

Return vs Industry: FRED.Q underperformed the US Multiline Retail industry which returned 15.1% over the past year.

Return vs Market: FRED.Q underperformed the US Market which returned 7.1% over the past year.


Shareholder returns

FRED.QIndustryMarket
7 Day-17.8%4.8%2.7%
30 Day-40.0%9.6%4.5%
90 Day-46.7%13.3%2.3%
1 Year-98.5%-98.5%21.6%19.0%11.5%9.1%
3 Year-100.0%-100.0%70.7%59.6%30.6%22.0%
5 Year-100.0%-100.0%34.5%17.2%57.2%39.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Fred's undervalued compared to its fair value and its price relative to the market?

0.0022x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate FRED.Q's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate FRED.Q's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: FRED.Q is unprofitable, so we can't compare its PE Ratio to the Multiline Retail industry average.

PE vs Market: FRED.Q is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FRED.Q's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FRED.Q is good value based on its PB Ratio (0x) compared to the US Multiline Retail industry average (1.2x).


Next Steps

Future Growth

How is Fred's forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.9%

Forecasted Retail industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Fred's has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of FRED.Q’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Fred's's filings and announcements here.
  • Explore growth companies in the Retail industry.

Past Performance

How has Fred's performed over the past 5 years?

-12.3%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: FRED.Q is currently unprofitable.

Growing Profit Margin: FRED.Q is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if FRED.Q's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare FRED.Q's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FRED.Q is unprofitable, making it difficult to compare its past year earnings growth to the Multiline Retail industry (-8.1%).


Return on Equity

High ROE: FRED.Q has a negative Return on Equity (-153.02%), as it is currently unprofitable.


Next Steps

Financial Health

How is Fred's's financial position?


Financial Position Analysis

Short Term Liabilities: FRED.Q's short term assets ($288.5M) exceed its short term liabilities ($260.7M).

Long Term Liabilities: FRED.Q's short term assets ($288.5M) exceed its long term liabilities ($119.5M).


Debt to Equity History and Analysis

Debt Level: FRED.Q's debt to equity ratio (100.5%) is considered high.

Reducing Debt: FRED.Q's debt to equity ratio has increased from 1% to 100.5% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if FRED.Q has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if FRED.Q has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: FRED.Q is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FRED.Q'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?

2.8yrs

Average board tenure


CEO

Fred's has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Steven Rossi
Independent Director3.08yrsUS$237.50k0.26% $549.5
Timothy Barton
Independent Director3.08yrsUS$220.00k0.50% $1.1k
Thomas Zacharias
Independent Director2yrsUS$213.39k0.23% $488.7
Heath Freeman
Independent Chairman of the Board2.75yrsUS$340.00k0.66% $1.4k
Dana Needleman
Independent Director2yrsUS$199.71k0.18% $380.7

2.8yrs

Average Tenure

53yo

Average Age

Experienced Board: FRED.Q's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Fred's, Inc.
  • Ticker: FRED.Q
  • Exchange: OTCPK
  • Founded: 1947
  • Industry: General Merchandise Stores
  • Sector: Retail
  • Market Cap: US$211.434k
  • Shares outstanding: 35.24m
  • Website: https://www.fredsinc.com

Number of Employees


Location

  • Fred's, Inc.
  • 4300 New Getwell Road
  • Memphis
  • Tennessee
  • 38118
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRED.QOTCPK (Pink Sheets LLC)YesClass A Voting SharesUSUSDMar 1992
FR1ADB (Deutsche Boerse AG)YesClass A Voting SharesDEEURMar 1992

Biography

Fred's, Inc., together with its subsidiaries, sells general merchandise through its retail discount stores and full service pharmacies. The company, through its stores, offers health, beauty, and personal care products; household cleaning supplies, disposable diapers, pet foods, and paper products; and various general merchandise, and food and beverage products to low, middle, and fixed income families located in small- to medium-sized towns. It also sells general merchandise to franchised Fred's stores. As of February 2, 2019, the company operated approximately 557 retail stores, including 169 pharmacies and 11 franchised stores located in 15 states primarily in the Southeastern United States. Fred's, Inc. was founded in 1947 and is headquartered in Memphis, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 09:39
End of Day Share Price2020/05/29 00:00
Earnings2019/05/04
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.