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Shoe Station Group (SHOE): analysis traps
Where its figures could mislead a reader, and what to check before taking them at face value · Data: Q2 FY27, to Aug 1, 2026, filed Sep 10, 2026; rules v1.1
Shoe Station Group (SHOE): 0 rules of 10 triggered on the filings to Aug 1, 2026. 2 to review; 1 with insufficient data; 2 not applicable. Each is a question to verify, with the normal explanation that would produce the same figures.
Check these first
Adjusted profit = economic profit To review · confidence low
Adjusted EPS was 10% or more above GAAP in 1 of the last 3 quarters: read the reconciliation before taking the adjusted figure.
A precise DCF value = the true value To review · confidence high
The DCF's point value is 11.62 a share (price 12.75); 59% of it is the terminal value, a number about years no one has seen. Moving operating margin by ±3 pts alone takes it from 4.39 to 18.62; across every method the research ran the range is -11 to 69. The value is a range; the decimals are not information.
Innocent reading: A stable, mature business with a narrow range of outcomes, where the point value is a fair summary.
Every rule
A01 FCF growth = the business improved Not triggered confidence high
Free cash flow did not rise ($69M → $27M): the trap does not arise.
The figures and how they are read
| Fiscal year before | FY25 |
| Fiscal year | FY26 |
| Operating cash flow, year before | $103M |
| Operating cash flow | $71M |
| Capex, year before | $33M |
| Capex | $45M |
| Free cash flow, year before | $69M |
| Free cash flow | $27M |
| Change in FCF | −$43M |
| Change in capex | $12M |
| Working capital: change in its cash contribution | −$21M |
FCF = operating cash flow − cash capex; ΔFCF = ΔOCF − ΔCapEx; the working-capital part is the change in the cash-bridge items (receivables, inventory, payables, accruals), with the sign of the cash flow statement
Source: FY26 (cash flow statement, fiscal year) · FY25 (cash flow statement, fiscal year before)
A07 Stock compensation added back = no economic cost Not triggered confidence high
Stock compensation is 0.6% of revenue: small enough that adding it back changes little.
The figures and how they are read
| Fiscal year | FY26 |
| Stock compensation | $7M |
| Revenue | $1.1B |
| SBC / revenue | +0.6% |
| Buybacks | 0 |
| Buybacks / SBC | 0.0 |
| Diluted shares, year before | 27.5M shares |
| Diluted shares | 27.5M shares |
| Diluted shares: change | +0.0% |
SBC / revenue from the cash flow statement's add-back; the diluted weighted share count year over year; buybacks from the financing section
Source: FY26 (stock compensation, buybacks and the diluted share count, fiscal year)
B02 Receivables growing = future cash is certain Not triggered confidence medium
Receivables grew -26% against revenue -7% in Q2 FY27; DSO 2 against a median of 2: collections are keeping pace with sales.
The figures and how they are read
| Quarter | Q2 FY27 |
| Revenue, year over year | -7.2% |
| Receivables, year over year | -25.9% |
| Quarter before | Q1 FY27 |
| Revenue y/y, quarter before | -2.5% |
| Receivables y/y, quarter before | -23.2% |
| Days sales outstanding | 2.1 |
| DSO, median of eight quarters | 2.4 |
| Receivables | $6M |
| Revenue | $284M |
receivables and revenue against the same quarter a year earlier; DSO = receivables / quarterly revenue × days, against the median of the eight quarters before
Source: Q2 FY27 (receivables and revenue) · Q2 FY26 (the same quarter a year earlier)
B08 Adjusted profit = economic profit To review confidence low
Adjusted EPS was 10% or more above GAAP in 1 of the last 3 quarters: read the reconciliation before taking the adjusted figure.
The figures and how they are read
| Quarter / adjusted EPS / GAAP EPS / gap | 2025-10-31 / 0.53 / 0.53 / 0.0; 2026-04-30 / 0.23 / -0.21 / 1.913; 2026-07-31 / 0.23 / 0.23 / 0.0 |
| Quarters with adjusted ≥ 10% above GAAP | 1 |
| Quarters compared | 3 |
| Latest gap | +0.0% |
the analysts' 'actual' (usually the company's adjusted EPS) against GAAP net income ÷ diluted shares for the matching quarter; a gap of 10% or more counts (the stand-in until three releases' reconciliation tables are on file)
Source: 2025-10-31 (adjusted 0.53 vs GAAP 0.53) · 2026-04-30 (adjusted 0.23 vs GAAP -0.21) · 2026-07-31 (adjusted 0.23 vs GAAP 0.23)
What would show the trap does not apply
- The reconciliation shows the excluded items ending (a restructuring with its final charge, a settlement paid) and the gap to GAAP closes in the next quarters
- The excluded items are only amortisation of acquired intangibles and the cash paid for the deals is in the investing cash flow
Look again: next filing.
C02 Low net debt = no refinancing risk Insufficient data
no debt figure could be read from the balance sheet (the filing may tag it in other lines)
D03 EPS growth = profit growth Not triggered confidence high
EPS fell 67% and net income fell 67% in Q2 FY27; the share count fell 0.5%: EPS growth follows profit growth.
The figures and how they are read
| Quarter | Q2 FY27 |
| Quarter before | Q2 FY26 |
| EPS, year before | $0.70 |
| EPS | $0.23 |
| Net income, year before | $19M |
| Net income | $6M |
| Diluted shares, year before | 27.5M shares |
| Diluted shares | 27.3M shares |
| EPS growth | -67.3% |
| Net income growth | -67.4% |
| Diluted shares: change | -0.5% |
| eps from profit | -$0.47 |
| eps from share count | $0.00 |
EPS and net income against the same quarter a year earlier; the EPS bridge attributes the change to profit first, then to the share count (the order is fixed and disclosed)
Source: Q2 FY27 (net income, diluted shares, EPS) · Q2 FY26 (the same quarter a year earlier)
E02 Low P/E at a cyclical peak = undervalued Not triggered confidence medium
Net income of $24M is not at a cyclical high against the last eight years (median $73M, best $155M): the P/E of 14.3× is on a normal year.
The figures and how they are read
| market value | $348M |
| net income ttm | $24M |
| pe ttm | 14.30 |
| net income median fy | $73M |
| pe mid cycle | 4.70 |
| net income peak fy | $155M |
| years | FY19 / 38.0; FY20 / 43.0; FY21 / 16.0; FY22 / 155.0; FY23 / 110.0; FY24 / 73.0; FY25 / 74.0; FY26 / 52.0 |
| down years in window | 4 |
P/E on the trailing twelve months' net income against the P/E on the median net income of the last eight fiscal years (a mid-cycle stand-in); 'at a peak' = this year's profit at or above 90% of the best year and at least 1.3× the median
Source: Q2 FY27 (net income, trailing twelve months)
E07 A precise DCF value = the true value To review confidence high
The DCF's point value is 11.62 a share (price 12.75); 59% of it is the terminal value, a number about years no one has seen. Moving operating margin by ±3 pts alone takes it from 4.39 to 18.62; across every method the research ran the range is -11 to 69. The value is a range; the decimals are not information.
The figures and how they are read
| dcf value | 11.62 |
| price | 12.75 |
| terminal value share | +58.6% |
| swing by input | Operating margin / ±3 pts / 4.39 / 18.62; Capex (share of revenue) / ±1 pt / 10.21 / 13.03; WACC / ±1 pt / 10.96 / 12.47; Revenue growth (each year) / ±5 pts / 11.02 / 12.35 |
| range all methods | -10.89; 69.02 |
the DCF's point value against the share of it that is the terminal value and the value at each input moved by one step (growth ±5 pts, WACC ±1 pt, margin ±3 pts …); the range across every method the research ran
Source: 2026-11-08 (valuation research)
What would explain it innocently
- A stable, mature business with a narrow range of outcomes, where the point value is a fair summary
- The inputs that matter most are themselves well known (a regulated return, a long contract)
What to look for in the filing
- Which input you believe differs from the research's and why
- What the price implies for growth (the reverse DCF on the fair-value page)
What would show the trap does not apply
- The DCF's value is robust to the terminal growth and discount rate (the range's low end is still above the price)
- The company's cash flows over the next three years track the DCF's early years
Look again: next filing.
J06 A bank's low P/E and high profit = safe Not applicable
not a bank
J08 A REIT's low net income = the dividend is unsafe Not applicable
not a REIT
What the statuses mean
Triggered: the filings show the pattern; read the normal explanations and the missing evidence before concluding anything. To review: one quarter or a weak signal; a reader's judgement, not a pattern. Not triggered: the pattern is absent on these figures. Insufficient data: the filings read so far do not hold what the rule needs; this is not a clean bill. Not applicable: the rule is not meant for this kind of company (a bank's working capital, a loss-making quarter's EPS growth). Out of date: the latest filing is more than fifteen months old.
Severity is what the pattern could mean for cash, value or solvency; confidence is how reliable the inputs and the reading are. The two are kept apart.
Record a view
A reader's judgement, grounds, what would change it and the next review; kept in the browser (needs JavaScript).
Every rule and the companies it triggers on → Shoe Station Group: cash flow → Earnings quality score →
Each rule reads the company's own filings by a fixed formula and says what would explain the same figures innocently. A triggered rule is a question to verify, not a finding of manipulation, and not a view on the stock. Missing data is shown as missing, never as clear. Not investment advice.