FTD - Synonymous with Flower Delivery Service
FTD is synonymous with top-quality flower delivery service. It was founded over 100 years ago in 1910 and stand for Florists' Transworld Delivery.
FTD closed the 1/18/2108 Friday session at $6.70. FTD’s RSI had been steadily rising since late November after hitting a 52-week low of $6.47 ($24.85 high). The question in the short-term is whether the stock finds support in the mid-$6.50 range or falls further to new 52-week lows.
Valentine’s Day is February 14th and perhaps some anticipation of an improved season is building. It would be a good time to stage a comeback story, but besides the pending upcoming mega holiday for florists, I don’t see any major catalyst to prop FTD up.
Despite the poor stock performance, I like it because many ratios look exceedingly attractive.
Price to book is $.48, Price to sales $.17 and Price to cash flow $2.94.
Consensus forward P/E is around $9 and PEG is .97.
FTD has taken around $150m in non-recurring other expense charges which are non-cash in nature. This has skewed income-based ratios. Free cash flow at $45m TTM is therefore hidden behind all these write-downs.
Outlook
CEO John Walden "Although I believe the company has recently performed below its potential," he said in a press release, "it has several assets to build upon -- strong brands, reliable partners including our member florists, and financial flexibility."
The company is still experiencing declining order volume. To counter this trend, FTD plans to ramp-up advertising efforts and improve the online shopping experience to regain market share from its rivals.
It will be high-stakes for FTD, with all its history. Will the company be able to reinvigorate its marketing image and bloom this spring, or die on the vine?
Company Profile
Employees: 1,500+
FTD Companies Inc is a floral and gifting company. The company provides floral, specialty foods, gift and related products and services to consumers, retail florists, and other retail locations and companies in need of floral and gifting solutions. FTD Companies, Inc. offers its products under the ProFlowers, ProPlants, Shari’s Berries, Personal Creations, Mercury Man logo, FTD, Interflora, RedEnvelope, Flying Flowers, Flowers Direct, Ink Cards, Postagram, and Gifts.com through its Websites, associated mobile sites and applications, and telephone.