Don't overlook NYSE:GES—it's a hidden gem with strong fundamentals and an attractive price tag.

Consider GUESS? INC (NYSE:GES) as a top value stock, identified by our stock screening tool. NYSE:GES shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Analysis for 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:

• Based on the Price/Earnings ratio of 8.33, the valuation of GES can be described as reasonable.
• Based on the Price/Earnings ratio, GES is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
• GES is valuated cheaply when we compare the Price/Earnings ratio to 24.84, which is the current average of the S&P500 Index.
• Based on the Price/Forward Earnings ratio of 9.10, the valuation of GES can be described as reasonable.
• Based on the Price/Forward Earnings ratio, GES is valued cheaply inside the industry as 86.51% of the companies are valued more expensively.
• When comparing the Price/Forward Earnings ratio of GES to the average of the S&P500 Index (21.35), we can say GES is valued rather cheaply.
• GES's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GES is cheaper than 91.27% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, GES is valued cheaper than 92.06% of the companies in the same industry.
• GES has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Assessment of NYSE:GES

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:GES has earned a 8 out of 10:

• The Return On Assets of GES (8.32%) is better than 76.98% of its industry peers.
• Looking at the Return On Equity, with a value of 31.47%, GES belongs to the top of the industry, outperforming 84.13% of the companies in the same industry.
• The Return On Invested Capital of GES (12.75%) is better than 80.16% of its industry peers.
• The Profit Margin of GES (7.76%) is better than 84.13% of its industry peers.
• GES's Profit Margin has improved in the last couple of years.
• GES's Operating Margin of 9.67% is amongst the best of the industry. GES outperforms 81.75% of its industry peers.
• In the last couple of years the Operating Margin of GES has grown nicely.
• GES's Gross Margin of 44.03% is fine compared to the rest of the industry. GES outperforms 71.43% of its industry peers.
• GES's Gross Margin has improved in the last couple of years.

A Closer Look at Health for NYSE:GES

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:GES scores a 6 out of 10:

• Looking at the Altman-Z score, with a value of 2.82, GES is in the better half of the industry, outperforming 62.70% of the companies in the same industry.
• GES has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of 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 72.22% of the companies in the same industry.
• Although GES does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
• With a decent Quick ratio value of 0.96, GES is doing good in the industry, outperforming 65.08% of the companies in the same industry.

Growth Assessment of NYSE:GES

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:GES was assigned a score of 5 for growth:

• GES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.10%, which is quite good.
• GES shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.83% yearly.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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

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

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.