For the first time in about two months, shares of Big Five Sporting Goods (NASDAQ: BGFV) are below $24 as a result of cutting its second quarter forecasts thanks to worse-than-expected same-store sales growth. While the market reacted semi-dramatically, sending the stock down more than 5%, I believe this decline in growth is only a hiccup in the company's growth story, especially because this is the company's first quarterly decline in same-store sales growth in 11 years.

While many would expect a value investor to jump on the opportunity to purchase a good company after a slip-up, I don't think that Big Five offers much value, at least when compared to a similar company: Cabela's (NYSE: CAB). To start, I believe the two companies are in fact very good comparisons -- they are similar in nearly every regard: multiple to this year's earnings, multiple to next year's earnings, multiple to sales, multiple of enterprise value to EBITDA, balance sheet dynamics (relatively speaking, very close debt/equity ratio), operating margins, etc.

As the story continues, it seems that Cabela's is actually cheaper than Big Five, despite the company's recent fall. Why?

Continue reading Big Five: Even after fall, still not enough value

Big Five: Even after fall, still not enough value originally appeared on BloggingStocks on Sat, 14 Jul 2007 11:24:00 EST. Please see our terms for use of feeds.