NYSE:GES appears to be flying under the radar despite its strong fundamentals.

Last update: Jul 4, 2024

Uncover the hidden value in GUESS? INC (NYSE:GES) as our stock screening tool recommends it as an undervalued choice. NYSE:GES maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

How do we evaluate the Valuation for NYSE:GES?

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:GES has achieved a 8 out of 10:

The Price/Earnings ratio is 6.79, which indicates a rather cheap valuation of GES.
Based on the Price/Earnings ratio, GES is valued cheaper than 99.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of GES to the average of the S&P500 Index (28.29), we can say GES is valued rather cheaply.
A Price/Forward Earnings ratio of 6.32 indicates a rather cheap valuation of GES.
95.97% of the companies in the same industry are more expensive than GES, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, GES is valued rather cheaply.
GES's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GES is cheaper than 90.32% of the companies in the same industry.
GES's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GES is cheaper than 98.39% of the companies in the same industry.
GES has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Insights: 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:

GES's Return On Assets of 8.72% is amongst the best of the industry. GES outperforms 80.65% of its industry peers.
GES has a better Return On Equity (42.38%) than 91.13% of its industry peers.
GES's Return On Invested Capital of 10.73% is fine compared to the rest of the industry. GES outperforms 75.81% of its industry peers.
GES has a better Profit Margin (8.56%) than 87.90% of its industry peers.
GES's Profit Margin has improved in the last couple of years.
The Operating Margin of GES (8.89%) is better than 81.45% of its industry peers.
In the last couple of years the Operating Margin of GES has grown nicely.
Looking at the Gross Margin, with a value of 44.26%, GES is in the better half of the industry, outperforming 69.35% of the companies in the same industry.
GES's Gross Margin has improved in the last couple of years.

ChartMill's Evaluation of Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:GES, the assigned 6 for health provides valuable insights:

GES has a debt to FCF ratio of 2.47. This is a good value and a sign of high solvency as GES would need 2.47 years to pay back of all of its debts.
GES has a better Debt to FCF ratio (2.47) than 70.97% 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.
With a decent Current ratio value of 1.57, GES is doing good in the industry, outperforming 61.29% of the companies in the same industry.
GES has a Quick ratio of 0.85. This is in the better half of the industry: GES outperforms 68.55% of its industry peers.

ChartMill's Evaluation of Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:GES boasts a 5 out of 10:

The Earnings Per Share has grown by an nice 18.00% 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
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.

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.