Despite its impressive fundamentals, NYSE:GES remains undervalued.

Our stock screening tool has pinpointed GUESS? INC (NYSE:GES) as an undervalued stock option. NYSE:GES retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

A Closer Look at Valuation for NYSE:GES

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:GES has earned a 8 for valuation:

• With a Price/Earnings ratio of 7.33, the valuation of GES can be described as very cheap.
• Compared to the rest of the industry, the Price/Earnings ratio of GES indicates a rather cheap valuation: GES is cheaper than 97.60% of the companies listed in the same industry.
• GES is valuated cheaply when we compare the Price/Earnings ratio to 29.02, which is the current average of the S&P500 Index.
• GES is valuated cheaply with a Price/Forward Earnings ratio of 6.82.
• 92.80% of the companies in the same industry are more expensive than GES, based on the Price/Forward Earnings ratio.
• GES is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.56, which is the current average of the S&P500 Index.
• 88.80% of the companies in the same industry are more expensive than GES, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of GES indicates a rather cheap valuation: GES is cheaper than 98.40% of the companies listed in the same industry.
• The excellent profitability rating of GES may justify a higher PE ratio.

Profitability Analysis for NYSE:GES

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:GES, the assigned 8 is noteworthy for profitability:

• GES has a Return On Assets of 8.72%. This is amongst the best in the industry. GES outperforms 82.40% of its industry peers.
• Looking at the Return On Equity, with a value of 42.38%, GES belongs to the top of the industry, outperforming 91.20% of the companies in the same industry.
• GES has a Return On Invested Capital of 10.73%. This is in the better half of the industry: GES outperforms 78.40% of its industry peers.
• GES has a Profit Margin of 8.56%. This is amongst the best in the industry. GES outperforms 88.00% of its industry peers.
• In the last couple of years the Profit Margin of GES has grown nicely.
• The Operating Margin of GES (8.89%) is better than 82.40% 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 68.80% of the companies in the same industry.
• GES's Gross Margin has improved in the last couple of years.

Understanding NYSE:GES's Health Score

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:

• 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.
• GES has a better Debt to FCF ratio (2.47) than 71.20% of its industry peers.
• Even though the debt/equity ratio score it not favorable for GES, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• GES has a better Current ratio (1.57) than 61.60% of its industry peers.
• GES has a Quick ratio of 0.85. This is in the better half of the industry: GES outperforms 68.00% of its industry peers.

Growth Analysis 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.
• Measured over the past years, GES shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.83% on average per year.
• 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 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.