Why I Will Never Buy Finish Line Inc. Stock

Shares of Finish Line (NASDAQ: FINL) tumbled nearly 60% over the past 12 months, due to ongoing concerns about the footwear retailer's slowing sales growth and disruption from direct-to-consumer channels. That drop reduced Finish Line's P/E to 12, versus the industry average of 46 for specialty retailers. Its forward yield of 4.5% is also easily supported by a low payout ratio of 52%.

Those figures make Finish Line look like a cheap income investment. But if we take a closer look at Finish Line's core business, we'll see that it's still a very risky stock -- and one that I never plan to buy.

Data source: Finish Line.

Source: Fool.com