Investors should take notice of NYSE:GES—it offers a great deal for the fundamentals it presents.

Last update: Apr 8, 2024

Our stock screening tool has identified GUESS? INC (NYSE:GES) as an undervalued gem with strong fundamentals. NYSE:GES boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Evaluating Valuation: NYSE:GES

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 9.65 indicates a reasonable valuation of GES.
Based on the Price/Earnings ratio, GES is valued cheaper than 84.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.07, GES is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.38, the valuation of GES can be described as very reasonable.
81.60% of the companies in the same industry are more expensive than GES, based on the Price/Forward Earnings ratio.
GES is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, GES is valued cheaper than 84.80% of the companies in the same industry.
89.60% of the companies in the same industry are more expensive than GES, based on the Price/Free Cash Flow ratio.
GES has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Insights: NYSE:GES

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:

GES has a better Return On Assets (8.32%) than 78.40% of its industry peers.
GES's Return On Equity of 31.47% is amongst the best of the industry. GES outperforms 84.00% of its industry peers.
The Return On Invested Capital of GES (12.75%) is better than 79.20% of its industry peers.
GES has a Profit Margin of 7.76%. This is amongst the best in the industry. GES outperforms 84.00% of its industry peers.
In the last couple of years the Profit Margin of GES has grown nicely.
With an excellent Operating Margin value of 9.67%, GES belongs to the best of the industry, outperforming 80.80% 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 (44.03%) than 70.40% 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 utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:GES has earned a 6 out of 10:

GES's Altman-Z score of 2.89 is fine compared to the rest of the industry. GES outperforms 68.80% of its industry peers.
The Debt to FCF ratio of GES is 1.77, which is an excellent value as it means it would take GES, only 1.77 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.77, GES is in the better half of the industry, outperforming 73.60% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for GES, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
GES has a Quick ratio of 0.96. This is in the better half of the industry: GES outperforms 65.60% of its industry peers.

How do we evaluate the Growth for NYSE:GES?

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:GES, the assigned 4 reflects its growth potential:

The Earnings Per Share has grown by an nice 12.10% over the past year.
The Earnings Per Share has been growing by 26.83% on average over the past years. This is a very strong growth

Every day, new Decent Value stocks can be found on ChartMill 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.