For those who appreciate value investing, NYSE:GES is a compelling option with its solid fundamentals.

GUESS? INC (NYSE:GES) has caught the attention of our stock screener as a great value stock. NYSE:GES excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Assessing Valuation Metrics 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 7.58 indicates a rather cheap valuation of GES.
• 98.36% 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 31.19. GES is valued rather cheaply when compared to this.
• The Price/Forward Earnings ratio is 7.06, which indicates a rather cheap valuation of GES.
• Based on the Price/Forward Earnings ratio, GES is valued cheaper than 95.90% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, GES is valued rather cheaply.
• GES's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GES is cheaper than 94.26% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of GES indicates a rather cheap valuation: GES is cheaper than 98.36% of the companies listed in the same industry.
• The decent profitability rating of GES may justify a higher PE ratio.

How do we evaluate the Profitability for NYSE:GES?

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:GES has earned a 7 out of 10:

• Looking at the Return On Assets, with a value of 6.72%, GES is in the better half of the industry, outperforming 73.77% of the companies in the same industry.
• GES has a Return On Equity of 37.98%. This is amongst the best in the industry. GES outperforms 85.25% of its industry peers.
• GES has a better Return On Invested Capital (9.82%) than 76.23% of its industry peers.
• The Profit Margin of GES (6.51%) is better than 81.15% of its industry peers.
• GES's Profit Margin has improved in the last couple of years.
• The Operating Margin of GES (7.71%) is better than 78.69% 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 44.10%, GES is in the better half of the industry, outperforming 68.85% of the companies in the same industry.
• In the last couple of years the Gross Margin of GES has grown nicely.

How do we evaluate the Health for NYSE:GES?

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 5 for health provides valuable insights:

• The Debt to FCF ratio of GES is 2.59, which is a good value as it means it would take GES, 2.59 years of fcf income to pay off all of its debts.
• GES has a Debt to FCF ratio of 2.59. This is in the better half of the industry: GES outperforms 70.49% of its industry peers.
• GES has a better Quick ratio (0.76) than 65.57% of its industry peers.

Growth Assessment of NYSE:GES

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:GES was assigned a score of 4 for growth:

• 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.

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

For an up to date full fundamental analysis you can check the fundamental report of GES

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.