NYSE:CAL, an undervalued stock with good fundamentals.

CALERES INC (NYSE:CAL) was identified as a decent value stock by our stock screener. NYSE:CAL scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Valuation Insights: NYSE:CAL

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:CAL was assigned a score of 8 for valuation:

• A Price/Earnings ratio of 6.05 indicates a rather cheap valuation of CAL.
• CAL's Price/Earnings ratio is rather cheap when compared to the industry. CAL is cheaper than 98.33% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 27.54. CAL is valued rather cheaply when compared to this.
• CAL is valuated cheaply with a Price/Forward Earnings ratio of 5.97.
• CAL's Price/Forward Earnings ratio is rather cheap when compared to the industry. CAL is cheaper than 96.67% 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 23.99.
• 99.17% of the companies in the same industry are more expensive than CAL, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAL indicates a rather cheap valuation: CAL is cheaper than 84.17% of the companies listed in the same industry.
• CAL has a very decent profitability rating, which may justify a higher PE ratio.

How do we evaluate the Profitability for NYSE:CAL?

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:CAL was assigned a score of 7 for profitability:

• The Return On Assets of CAL (9.29%) is better than 85.00% of its industry peers.
• With an excellent Return On Equity value of 30.37%, CAL belongs to the best of the industry, outperforming 84.17% of the companies in the same industry.
• CAL has a Return On Invested Capital of 14.26%. This is amongst the best in the industry. CAL outperforms 83.33% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for CAL is above the industry average of 12.29%.
• Looking at the Profit Margin, with a value of 5.28%, CAL is in the better half of the industry, outperforming 78.33% of the companies in the same industry.
• CAL has a better Operating Margin (6.42%) than 74.17% of its industry peers.
• CAL's Operating Margin has improved in the last couple of years.
• CAL's Gross Margin of 45.40% is fine compared to the rest of the industry. CAL outperforms 71.67% of its industry peers.
• CAL's Gross Margin has improved in the last couple of years.

Exploring NYSE:CAL's Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CAL has received a 5 out of 10:

• CAL has a Altman-Z score of 2.83. This is in the better half of the industry: CAL outperforms 63.33% of its industry peers.
• CAL has a debt to FCF ratio of 3.60. This is a good value and a sign of high solvency as CAL would need 3.60 years to pay back of all of its debts.
• CAL's Debt to FCF ratio of 3.60 is fine compared to the rest of the industry. CAL outperforms 69.17% of its industry peers.
• A Debt/Equity ratio of 0.40 indicates that CAL is not too dependend on debt financing.

Growth Insights: NYSE:CAL

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:CAL has earned a 4 for growth:

• The Earnings Per Share has been growing by 13.59% on average over the past years. This is quite good.
• The Revenue has grown by 22.13% in the past year. This is a very strong growth!
• When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of CAL contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.