When you look at NYSE:GES, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Jan 23, 2024

Take a closer look at GUESS? INC (NYSE:GES), a remarkable value stock uncovered by our stock screener. NYSE:GES excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

ChartMill's Evaluation of Valuation

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:GES was assigned a score of 8 for valuation:

A Price/Earnings ratio of 7.97 indicates a rather cheap valuation of GES.
GES's Price/Earnings ratio is rather cheap when compared to the industry. GES is cheaper than 91.34% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.97, GES is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.67, the valuation of GES can be described as very cheap.
Based on the Price/Forward Earnings ratio, GES is valued cheaper than 88.98% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.90. GES is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, GES is valued cheaply inside the industry as 81.10% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GES indicates a rather cheap valuation: GES is cheaper than 85.04% of the companies listed in the same industry.
GES has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Analysis for NYSE:GES

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:GES, the assigned 8 is noteworthy for profitability:

GES has a better Return On Assets (7.49%) than 75.59% of its industry peers.
Looking at the Return On Equity, with a value of 36.10%, GES belongs to the top of the industry, outperforming 85.04% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.69%, GES is in the better half of the industry, outperforming 73.23% of the companies in the same industry.
The 3 year average ROIC (8.67%) for GES is below the current ROIC(10.69%), indicating increased profibility in the last year.
GES has a Profit Margin of 6.87%. This is amongst the best in the industry. GES outperforms 82.68% of its industry peers.
In the last couple of years the Profit Margin of GES has grown nicely.
With a decent Operating Margin value of 8.52%, GES is doing good in the industry, outperforming 77.17% of the companies in the same industry.
In the last couple of years the Operating Margin of GES has grown nicely.
GES has a better Gross Margin (43.62%) than 71.65% of its industry peers.
In the last couple of years the Gross Margin of GES has grown nicely.

Evaluating Health: NYSE:GES

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:GES has received a 5 out of 10:

With a decent Altman-Z score value of 2.71, GES is doing good in the industry, outperforming 60.63% of the companies in the same industry.
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.
GES has a Debt to FCF ratio of 3.44. This is in the better half of the industry: GES outperforms 64.57% of its industry peers.
GES has a Quick ratio of 0.80. This is in the better half of the industry: GES outperforms 63.78% of its industry peers.

A Closer Look at Growth for NYSE:GES

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:GES boasts a 4 out of 10:

GES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.32%, which is quite impressive.
The Earnings Per Share has been growing by 32.43% on average over the past years. This is a very strong growth

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

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

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.