Exploring NYSE:GES's dividend characteristics.

Consider GUESS? INC (NYSE:GES) as a top pick for dividend investors, identified by our stock screening tool. NYSE:GES shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Dividend Assessment of NYSE:GES

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:GES has been awarded a 7 for its dividend quality:

• GES has a Yearly Dividend Yield of 5.06%, which is a nice return.
• Compared to an average industry Dividend Yield of 3.42, GES pays a better dividend. On top of this GES pays more dividend than 95.20% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.37, GES pays a better dividend.
• GES has been paying a dividend for at least 10 years, so it has a reliable track record.
• GES pays out 29.13% of its income as dividend. This is a sustainable payout ratio.

Health Assessment of NYSE:GES

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 6 for health:

• GES has a Altman-Z score of 2.77. This is in the better half of the industry: GES outperforms 61.60% 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.
• GES's Debt to FCF ratio of 1.77 is fine compared to the rest of the industry. GES outperforms 73.60% of its industry peers.
• 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.
• The Quick ratio of GES (0.96) is better than 66.40% of its industry peers.

Analyzing Profitability Metrics

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:

• GES's Return On Assets of 8.32% is fine compared to the rest of the industry. GES outperforms 79.20% of its industry peers.
• GES's Return On Equity of 31.47% is amongst the best of the industry. GES outperforms 84.80% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 12.75%, GES is in the better half of the industry, outperforming 79.20% of the companies in the same industry.
• With an excellent Profit Margin value of 7.76%, GES belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
• GES's Profit Margin has improved in the last couple of years.
• GES has a Operating Margin of 9.67%. This is amongst the best in the industry. GES outperforms 81.60% of its industry peers.
• GES's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 44.03%, GES is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
• GES's Gross Margin has improved in the last couple of years.

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.