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Sears Hometown and Outlet Stores (Sears Hometown and Outlet Stores) Net-Net Working Capital : $-9.74 (As of Jul. 2019)


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What is Sears Hometown and Outlet Stores Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Sears Hometown and Outlet Stores's Net-Net Working Capital for the quarter that ended in Jul. 2019 was $-9.74.

The industry rank for Sears Hometown and Outlet Stores's Net-Net Working Capital or its related term are showing as below:

SHOS's Price-to-Net-Net-Working-Capital is not ranked *
in the Retail - Cyclical industry.
Industry Median: 6.225
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Sears Hometown and Outlet Stores Net-Net Working Capital Historical Data

The historical data trend for Sears Hometown and Outlet Stores's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sears Hometown and Outlet Stores Net-Net Working Capital Chart

Sears Hometown and Outlet Stores Annual Data
Trend Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only 1.29 0.19 0.52 -2.10 -2.69

Sears Hometown and Outlet Stores Quarterly Data
Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.25 -1.91 -2.69 -7.66 -9.74

Competitive Comparison of Sears Hometown and Outlet Stores's Net-Net Working Capital

For the Department Stores subindustry, Sears Hometown and Outlet Stores's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sears Hometown and Outlet Stores's Price-to-Net-Net-Working-Capital Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Sears Hometown and Outlet Stores's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Sears Hometown and Outlet Stores's Price-to-Net-Net-Working-Capital falls into.



Sears Hometown and Outlet Stores Net-Net Working Capital Calculation

Sears Hometown and Outlet Stores's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jan. 2019 is calculated as

Net-Net Working Capital(A: Jan. 2019 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(15.11+0.75 * 11.916+0.5 * 277.285-223.815
-0-0)/22.702
=-2.69

Sears Hometown and Outlet Stores's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jul. 2019 is calculated as

Net-Net Working Capital(Q: Jul. 2019 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(10.855+0.75 * 9.062+0.5 * 139.671-308.59
-0-0)/22.7021
=-9.74

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.


Sears Hometown and Outlet Stores  (NAS:SHOS) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


Sears Hometown and Outlet Stores Net-Net Working Capital Related Terms

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Sears Hometown and Outlet Stores (Sears Hometown and Outlet Stores) Business Description

Traded in Other Exchanges
N/A
Address
5500 Trillium Boulevard, Suite 501, Hoffman Estates, IL, USA, 60192
Sears Hometown and Outlet Stores Inc is a national retailer engaged in the selling of home appliances, lawn and garden equipment, and hardware at its stores and on its websites. It also offers its customers the opportunity to acquire home appliance, lawn and garden, fitness, bedding, and other categories of merchandise and product protection agreements through the lease-to-own program that it operates by agreement with a third party. Its business segments are the Sears Hometown and Hardware, and the Sears Outlet.
Executives
William K Phelan director 3333 BEVERLY ROAD HOFFMAN ESTATES IL 60179
James F Gooch director C/O 5500 TRILLIUM BOULEVARD, SUITE 501, HOFFMAN ESTATES IL 60192
Josephine Linden director 6601 SOUTH BERMUDA ROAD, LAS VEGAS NV 89119
Esl Partners Lp 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOR FL 33154
Esl Investments Inc 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOR ISLANDS FL 33154
Edward S Lampert 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOUR FL 33154
Rbs Partners L P /ct 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOR ISLANDS FL 33154
Ryan D Robinson officer: Senior VP and CFO/CAO 5500 TRILLIUM BOULEVARD, SUITE 501, HOFFMAN ESTATES IL 60192
Rbs Investment Management Llc 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOR FL 33154
Esl Institutional Partners Lp 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOR FL 33154
Crk Partners Llc 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOR ISLANDS FL 33154
Spe Master I, L.p. 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOR FL 33154
Spe I Partners, L.p. 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOR FL 33154
Jeffrey Flug director C/O PENNANTPARK INVESTMENT CORPORATION, 445 PARK AVENUE, 10TH FLOOR, NEW YORK NY 10022
William R Harker director 5500 TRILLIUM BOULEVARD, SUITE 501, HOFFMAN ESTATES IL 60192

Sears Hometown and Outlet Stores (Sears Hometown and Outlet Stores) Headlines