Despite its impressive fundamentals, NYSE:CAL remains undervalued.

Discover CALERES INC (NYSE:CAL), an undervalued stock highlighted by our stock screener. NYSE:CAL showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Analyzing Valuation Metrics

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:CAL, the assigned 8 reflects its valuation:

• A Price/Earnings ratio of 8.04 indicates a reasonable valuation of CAL.
• Based on the Price/Earnings ratio, CAL is valued cheaper than 96.69% of the companies in the same industry.
• CAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.12.
• Based on the Price/Forward Earnings ratio of 6.88, the valuation of CAL can be described as very cheap.
• CAL's Price/Forward Earnings ratio is rather cheap when compared to the industry. CAL is cheaper than 97.52% of the companies in the same industry.
• CAL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.79.
• 94.21% of the companies in the same industry are more expensive than CAL, based on the Enterprise Value to EBITDA ratio.
• CAL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CAL is cheaper than 90.08% of the companies in the same industry.
• The decent profitability rating of CAL may justify a higher PE ratio.

How do we evaluate the Profitability for NYSE:CAL?

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CAL has earned a 7 out of 10:

• Looking at the Return On Assets, with a value of 7.76%, CAL belongs to the top of the industry, outperforming 80.17% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 25.87%, CAL belongs to the top of the industry, outperforming 82.64% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 12.76%, CAL belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for CAL is above the industry average of 12.28%.
• Looking at the Profit Margin, with a value of 5.60%, CAL is in the better half of the industry, outperforming 78.51% of the companies in the same industry.
• CAL's Operating Margin of 6.64% is fine compared to the rest of the industry. CAL outperforms 75.21% of its industry peers.
• In the last couple of years the Operating Margin of CAL has grown nicely.
• Looking at the Gross Margin, with a value of 45.19%, CAL is in the better half of the industry, outperforming 71.90% of the companies in the same industry.
• In the last couple of years the Gross Margin of CAL has grown nicely.

Health Examination for NYSE:CAL

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CAL has achieved a 6 out of 10:

• CAL has a debt to FCF ratio of 1.08. This is a very positive value and a sign of high solvency as it would only need 1.08 years to pay back of all of its debts.
• CAL has a Debt to FCF ratio of 1.08. This is amongst the best in the industry. CAL outperforms 80.17% of its industry peers.
• CAL has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
• Looking at the Debt to Equity ratio, with a value of 0.24, CAL is in the better half of the industry, outperforming 60.33% of the companies in the same industry.

What does the Growth looks like for NYSE:CAL

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:CAL has achieved a 4 out of 10:

• Measured over the past years, CAL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.59% on average per year.
• CAL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.80% yearly.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of CAL

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.