Despite its impressive fundamentals, NYSE:GES remains undervalued.

Last update: Feb 13, 2024

GUESS? INC (NYSE:GES) was identified as a decent value stock by our stock screener. NYSE:GES 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.

A Closer Look at Valuation for NYSE:GES

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:GES boasts a 8 out of 10:

The Price/Earnings ratio is 8.24, which indicates a very decent valuation of GES.
Based on the Price/Earnings ratio, GES is valued cheaper than 92.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.01, GES is valued rather cheaply.
A Price/Forward Earnings ratio of 8.08 indicates a reasonable valuation of GES.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GES indicates a rather cheap valuation: GES is cheaper than 89.06% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.61, GES is valued rather cheaply.
GES's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GES is cheaper than 81.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GES is valued cheaply inside the industry as 83.59% of the companies are valued more expensively.
The excellent profitability rating of GES may justify a higher PE ratio.

Evaluating Profitability: NYSE:GES

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:GES was assigned a score of 8 for profitability:

Looking at the Return On Assets, with a value of 7.49%, GES is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Return On Equity of GES (36.10%) is better than 85.94% of its industry peers.
The Return On Invested Capital of GES (10.69%) is better than 72.66% of its industry peers.
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 better Profit Margin (6.87%) than 82.03% of its industry peers.
In the last couple of years the Profit Margin of GES has grown nicely.
GES has a better Operating Margin (8.52%) than 77.34% of its industry peers.
GES's Operating Margin has improved in the last couple of years.
GES has a Gross Margin of 43.62%. This is in the better half of the industry: GES outperforms 71.09% of its industry peers.
In the last couple of years the Gross Margin of GES has grown nicely.

Understanding NYSE:GES's Health Score

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:GES was assigned a score of 5 for health:

GES has a better Altman-Z score (2.72) than 60.16% of its industry peers.
GES has a debt to FCF ratio of 3.44. This is a good value and a sign of high solvency as GES would need 3.44 years to pay back of all of its debts.
The Debt to FCF ratio of GES (3.44) is better than 64.06% of its industry peers.
GES's Quick ratio of 0.80 is fine compared to the rest of the industry. GES outperforms 62.50% of its industry peers.

Growth Assessment of NYSE:GES

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:GES has received a 4 out of 10:

The Earnings Per Share has grown by an impressive 30.32% over the past year.
Measured over the past years, GES shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.43% on average per year.

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

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.