NYSE:CAL is an undervalued gem with solid 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 Examination for NYSE:CAL

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:CAL has achieved a 8 out of 10:

• A Price/Earnings ratio of 5.33 indicates a rather cheap valuation of CAL.
• CAL's Price/Earnings ratio is rather cheap when compared to the industry. CAL is cheaper than 99.14% 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 27.28.
• CAL is valuated cheaply with a Price/Forward Earnings ratio of 5.26.
• 98.28% of the companies in the same industry are more expensive than CAL, based on the Price/Forward Earnings ratio.
• CAL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.53.
• Based on the Enterprise Value to EBITDA ratio, CAL is valued cheaper than 99.14% of the companies in the same industry.
• CAL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CAL is cheaper than 87.07% 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?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:CAL has achieved a 7:

• CAL has a better Return On Assets (9.29%) than 84.48% of its industry peers.
• Looking at the Return On Equity, with a value of 30.37%, CAL belongs to the top of the industry, outperforming 83.62% of the companies in the same industry.
• The Return On Invested Capital of CAL (14.26%) is better than 82.76% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for CAL is above the industry average of 12.38%.
• Looking at the Profit Margin, with a value of 5.28%, CAL is in the better half of the industry, outperforming 77.59% of the companies in the same industry.
• The Operating Margin of CAL (6.42%) is better than 73.28% 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 71.55% of its industry peers.
• CAL's Gross Margin has improved in the last couple of years.

Health Assessment of NYSE:CAL

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:

• With a decent Altman-Z score value of 2.79, CAL is doing good in the industry, outperforming 62.07% of the companies in the same industry.
• The Debt to FCF ratio of CAL is 3.60, which is a good value as it means it would take CAL, 3.60 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of CAL (3.60) is better than 68.97% of its industry peers.
• CAL has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.

Looking at the Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:CAL scores a 4 out of 10:

• CAL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.59% yearly.
• CAL shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.13%.
• 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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

Disclaimer

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.