Today we
have shortlisted 8 U.S.
retail stocks that have reported low cash conversion cycles (i.e., the time it
takes a company to convert its investment in inventory and other resource
inputs into cash) during fiscal year 2013, in addition to high Return on Equity
estimates for fiscal year 2014. Majority of the below listed stocks reported negative cash conversion cycles, which means they are getting paid by their customers long before they pay their suppliers and hence no requirement to have a short term-borrowing.
|
Company Name |
Ticker |
Exchange |
Market Cap |
Last Price |
Average Volume |
Price Change |
Cash Conversion Cycle (Days)* |
ROE 2014(E) |
|
Blue Nile Inc |
NILE |
NASDAQ |
344.6 |
29.11 |
139,522 |
1.1% |
-82 |
55.5% |
|
Fresh Market Inc/The |
TFM |
NASDAQ |
1,720.9 |
35.54 |
712,988 |
-0.3% |
3 |
25.4% |
|
Jumei International Holding Ltd |
JMEI |
NYSE |
3,433.6 |
23.99 |
1,206,218 |
-18.3% |
-45 |
18.3% |
|
Casey’s General Stores Inc |
CASY |
NASDAQ |
2,848.1 |
73.69 |
250,043 |
4.0% |
-1 |
18.2% |
|
PriceSmart Inc |
PSMT |
NASDAQ |
2,583.5 |
85.52 |
106,373 |
-4.6% |
5 |
17.0% |
|
Sprouts Farmers Market Inc |
SFM |
NASDAQ |
4,441.5 |
29.52 |
837,641 |
-5.7% |
4 |
15.5% |
|
E-Commerce China Dangdang Inc |
DANG |
NYSE |
906.3 |
11.12 |
1,733,607 |
-18.5% |
-1 |
12.8% |
|
Overstock.com Inc |
OSTK |
NASDAQ |
389.5 |
16.21 |
141,516 |
-11.3% |
-12 |
9.6% |
Source: Bloomberg
Cash Conversion Cycle = Days of Inventory Outstanding + Days of Sales Outstanding – Days of Payables Outstanding
Company Description
Blue Nile Inc (NASDAQ: NILE)
Blue Nile, Inc. is an online retailer of diamonds and fine jewelry. The company’s Web site showcases various independently certified diamonds and various styles of fine jewelry, including rings, wedding bands, earrings, necklaces, pendants, bracelets, and watches.
Fresh Market Inc/The (NASDAQ: TFM)
The Fresh Market, Inc. retails food. The company operates a chain of stores that retail fresh premium perishable food items. Fresh Market operates in the southeastern, midwestern and Mid-Atlantic States.
Jumei International Holding Ltd (NYSE: JMEI)
Jumei International Holding Ltd is an online retailer of beauty products.
Casey’s General Stores Inc (NASDAQ: CASY)
Casey’s General Stores, Inc. operates convenience stores in the Midwest. The company’s stores, operating under the name Casey’s General Store, carry a selection of food, beverages, tobacco products, health and beauty aids, automotive products, and other non-food items, as well as sells gasoline.
PriceSmart Inc (NASDAQ: PSMT)
PriceSmart, Inc. owns and manages international merchandising businesses. The company licenses and owns membership stores using the trade name PriceSmart and PriceCostco. PriceSmart’s international market consists of Latin America and Asia. The company also operates domestic merchandising programs, including its Auto Referral Program and its Travel Program.
Sprouts Farmers Market Inc (NASDAQ: SFM)
Sprouts Farmers Market, Inc. operates a chain of retail grocery stores. The company offers meats, cheese, dairy products, bakery, beer and wine, bulk foods, vitamins, and supplements. Sprouts Farmers Market serves customers throughout the United States.
E-Commerce China Dangdang Inc (NYSE: DANG)
E-Commerce China Dangdang, Inc. is a business-to-consumer Internet retailer. The company sells books and other media; beauty and personal care; home and lifestyle; baby, children and maternity products; and various apparel including jackets, shoes, and men’s and women’s apparel.
Overstock.com Inc (NASDAQ: OSTK)
Overstock.com, Inc. offers discounted brand-name merchandise for sale over the Internet. Products include bed-and-bath goods, kitchenware, jewelry, sporting goods, electronics, and designer accessories.
