NYSE:GES: good value for what you're paying.

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.

Valuation Analysis for NYSE:GES

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:GES scores a 8 out of 10:

• A Price/Earnings ratio of 7.77 indicates a rather cheap valuation of GES.
• 96.00% of the companies in the same industry are more expensive than GES, based on the Price/Earnings ratio.
• The average S&P500 Price/Earnings ratio is at 28.19. GES is valued rather cheaply when compared to this.
• GES is valuated cheaply with a Price/Forward Earnings ratio of 7.27.
• Based on the Price/Forward Earnings ratio, GES is valued cheaply inside the industry as 94.40% of the companies are valued more expensively.
• GES's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 19.98.
• Based on the Enterprise Value to EBITDA ratio, GES is valued cheaply inside the industry as 95.20% of the companies are valued more expensively.
• GES's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GES is cheaper than 96.80% of the companies in the same industry.
• GES has an outstanding profitability rating, which may justify a higher PE ratio.

Understanding NYSE:GES's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:GES scores a 8 out of 10:

• GES has a Return On Assets of 8.32%. This is in the better half of the industry: GES outperforms 78.40% of its industry peers.
• GES has a better Return On Equity (31.47%) than 84.80% 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 84.80% of its industry peers.
• In the last couple of years the Profit Margin of GES has grown nicely.
• Looking at the Operating Margin, with a value of 9.67%, GES belongs to the top of the industry, outperforming 81.60% of the companies in the same industry.
• GES's Operating Margin has improved in the last couple of years.
• GES has a better Gross Margin (44.03%) than 68.80% of its industry peers.
• In the last couple of years the Gross Margin of GES has grown nicely.

What does the Health looks like for 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 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 72.00% 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.
• GES's Quick ratio of 0.96 is fine compared to the rest of the industry. GES outperforms 68.80% of its industry peers.

Looking at the Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:GES scores a 5 out of 10:

• GES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.00%, 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.
• When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.