Why NYSE:GES provides a good dividend, while having solid fundamentals.

Take a closer look at GUESS? INC (NYSE:GES), a stock of interest to dividend investors uncovered by our stock screener. NYSE:GES excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Assessing Dividend Metrics for NYSE:GES

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:GES has received a 7 out of 10:

• GES has a Yearly Dividend Yield of 5.13%, which is a nice return.
• GES's Dividend Yield is rather good when compared to the industry average which is at 3.12. GES pays more dividend than 96.12% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.43, GES pays a better dividend.
• GES has paid a dividend for at least 10 years, which is a reliable track record.
• GES pays out 31.52% of its income as dividend. This is a sustainable payout ratio.

Assessing Health for NYSE:GES

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:GES, the assigned 5 reflects its health status:

• GES has a better Altman-Z score (2.71) than 60.47% of its industry peers.
• The Debt to FCF ratio of GES is 3.44, which is a good value as it means it would take GES, 3.44 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 3.44, GES is doing good in the industry, outperforming 62.02% of the companies in the same industry.
• GES has a Quick ratio of 0.80. This is in the better half of the industry: GES outperforms 63.57% of its industry peers.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:GES, the assigned 8 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 7.49%, GES is in the better half of the industry, outperforming 75.19% of the companies in the same industry.
• With an excellent Return On Equity value of 36.10%, GES belongs to the best of the industry, outperforming 86.05% of the companies in the same industry.
• The Return On Invested Capital of GES (10.69%) is better than 72.87% of its industry peers.
• The last Return On Invested Capital (10.69%) for GES is above the 3 year average (8.67%), which is a sign of increasing profitability.
• GES has a Profit Margin of 6.87%. This is amongst the best in the industry. GES outperforms 82.95% of its industry peers.
• In the last couple of years the Profit Margin of GES has grown nicely.
• Looking at the Operating Margin, with a value of 8.52%, GES is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
• GES's Operating Margin has improved in the last couple of years.
• GES has a better Gross Margin (43.62%) than 72.09% of its industry peers.
• In the last couple of years the Gross Margin of GES has grown nicely.

More Best Dividend stocks can be found in our Best Dividend screener.

Check the latest full fundamental report of GES for a complete fundamental analysis.

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.