Despite its impressive fundamentals, NYSE:GES remains undervalued.

Last update: Jul 25, 2024

Discover GUESS? INC (NYSE:GES), an undervalued stock highlighted by our stock screener. NYSE:GES showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Assessing 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:

GES is valuated cheaply with a Price/Earnings ratio of 7.70.
Based on the Price/Earnings ratio, GES is valued cheaply inside the industry as 98.41% of the companies are valued more expensively.
GES is valuated cheaply when we compare the Price/Earnings ratio to 24.43, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.16, the valuation of GES can be described as very cheap.
Based on the Price/Forward Earnings ratio, GES is valued cheaper than 92.06% of the companies in the same industry.
GES is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.38, which is the current average of the S&P500 Index.
88.10% of the companies in the same industry are more expensive than GES, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GES is valued cheaper than 97.62% of the companies in the same industry.
The excellent profitability rating of GES may justify a higher PE ratio.

Assessing Profitability for 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 has a Return On Assets of 8.72%. This is amongst the best in the industry. GES outperforms 80.95% of its industry peers.
With an excellent Return On Equity value of 42.38%, GES belongs to the best of the industry, outperforming 91.27% of the companies in the same industry.
The Return On Invested Capital of GES (10.73%) is better than 76.19% of its industry peers.
The Profit Margin of GES (8.56%) is better than 88.10% 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 81.75% of its industry peers.
In the last couple of years the Operating Margin of GES has grown nicely.
GES has a Gross Margin of 44.26%. This is in the better half of the industry: GES outperforms 69.05% of its industry peers.
In the last couple of years the Gross Margin of GES has grown nicely.

Assessing Health 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:

The Debt to FCF ratio of GES is 2.47, which is a good value as it means it would take GES, 2.47 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.47, GES is doing good in the industry, outperforming 70.63% 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 has a better Current ratio (1.57) than 61.11% of its industry peers.
With a decent Quick ratio value of 0.85, GES is doing good in the industry, outperforming 68.25% of the companies in the same industry.

What does the Growth looks like for NYSE:GES

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:GES has received 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
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.

Keep in mind

This article should in no way be interpreted as advice. 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.