It’s Not Over for BONT, Expect More Downside Move In Price
Sep, 22nd 04:38
Bon-Ton Stores Inc. (NASDAQ:BONT) operates department stores in the U.S., offering branded fashion apparel, cosmetics and other goods. Since last year, BONT’s share price has fallen drastically by nearly 54%, and we think it is fair to say that the price performance of the company’s stock has been woeful since 2013.
BONT’s price has been depressed to a really low level, and so a natural question that now comes to mind is this: Is there more downside potential, or is this a buying opportunity?
Bon-Ton’s recent-quarter results were disappointing, and there is little evidence to suggest that a turnaround is in sight. However, the company has managed to achieve growth in EBITDA.
Bon-Ton’s performance in terms of net income growth and cash flow generation has been poor compared to that of its direct competitors.
The company’s debt levels are at an unacceptably high level.
Bon-Ton may be attractively priced compared to investment alternatives within the industry, but it still does not represent a solid investment opportunity.