CALERES INC (CAL)
US1295001044 - Common Stock
We assign a fundamental rating of 6 out of 10 to CAL. CAL was compared to 123 industry peers in the Specialty Retail industry. CAL has an excellent profitability rating, but there are some minor concerns on its financial health. CAL scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make CAL a good candidate for value investing.
1. Profitability
1.1 Basic Checks
CAL had positive earnings in the past year.
CAL had a positive operating cash flow in the past year.
CAL had positive earnings in 4 of the past 5 years.
In the past 5 years CAL always reported a positive cash flow from operatings.
1.2 Ratios
CAL has a Return On Assets of 7.76%. This is amongst the best in the industry. CAL outperforms 80.17% of its industry peers.
With an excellent Return On Equity value of 25.87%, CAL belongs to the best of the industry, outperforming 82.64% of the companies in the same industry.
CAL has a better Return On Invested Capital (12.76%) than 81.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAL is above the industry average of 12.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.76% | ||
| ROE | 25.87% | ||
| ROIC | 12.76% |
ROA(3y)8.57%
ROA(5y)0.94%
ROE(3y)37.34%
ROE(5y)-19.58%
ROIC(3y)16.15%
ROIC(5y)N/A
1.3 Margins
CAL's Profit Margin of 5.60% is fine compared to the rest of the industry. CAL outperforms 78.51% of its industry peers.
CAL has a Operating Margin of 6.64%. This is in the better half of the industry: CAL outperforms 75.21% of its industry peers.
CAL's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 45.19%, CAL is doing good in the industry, outperforming 71.90% of the companies in the same industry.
In the last couple of years the Gross Margin of CAL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.64% | ||
| PM (TTM) | 5.6% | ||
| GM | 45.19% |
OM growth 3YN/A
OM growth 5Y11.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.81%
GM growth 5Y1.91%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CAL is creating some value.
CAL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CAL has been reduced compared to 5 years ago.
CAL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.53 indicates that CAL is not a great score, but indicates only limited risk for bankruptcy at the moment.
CAL has a Altman-Z score (2.53) which is comparable to the rest of the industry.
The Debt to FCF ratio of CAL is 1.08, which is an excellent value as it means it would take CAL, only 1.08 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.08, CAL belongs to the best of the industry, outperforming 80.17% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that CAL is not too dependend on debt financing.
CAL's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. CAL outperforms 60.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.28
WACC9.96%
2.3 Liquidity
A Current Ratio of 1.09 indicates that CAL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.09, CAL is doing worse than 70.25% of the companies in the same industry.
CAL has a Quick Ratio of 1.09. This is a bad value and indicates that CAL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.32, CAL is not doing good in the industry: 71.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.60% over the past year.
Measured over the past years, CAL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.59% on average per year.
Looking at the last year, CAL shows a decrease in Revenue. The Revenue has decreased by -1.80% in the last year.
Measured over the past years, CAL shows a decrease in Revenue. The Revenue has been decreasing by -0.12% on average per year.
EPS 1Y (TTM)5.6%
EPS 3YN/A
EPS 5Y13.59%
EPS Q2Q%-13.27%
Revenue 1Y (TTM)-1.8%
Revenue growth 3Y9.99%
Revenue growth 5Y-0.12%
Sales Q2Q%-1.76%
3.2 Future
The Earnings Per Share is expected to grow by 10.80% on average over the next years. This is quite good.
CAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.48% yearly.
EPS Next Y-2.32%
EPS Next 2Y5.23%
EPS Next 3Y6.46%
EPS Next 5Y10.8%
Revenue Next Year-1.9%
Revenue Next 2Y0.67%
Revenue Next 3Y1.49%
Revenue Next 5Y4.48%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.83, which indicates a rather cheap valuation of CAL.
Based on the Price/Earnings ratio, CAL is valued cheaply inside the industry as 93.39% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.10. CAL is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.70, the valuation of CAL can be described as very cheap.
Based on the Price/Forward Earnings ratio, CAL is valued cheaper than 95.04% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.79. CAL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 6.7 |
4.2 Price Multiples
93.39% of the companies in the same industry are more expensive than CAL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAL indicates a rather cheap valuation: CAL is cheaper than 88.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.02 | ||
| EV/EBITDA | 4.42 |
4.3 Compensation for Growth
The decent profitability rating of CAL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y5.23%
EPS Next 3Y6.46%
5. Dividend
5.1 Amount
CAL has a yearly dividend return of 0.93%, which is pretty low.
The stock price of CAL dropped by -24.11% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.01, CAL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.21, CAL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
The dividend of CAL decreases each year by -0.22%.
CAL has paid a dividend for at least 10 years, which is a reliable track record.
CAL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.22%
Div Incr Years0
Div Non Decr Years25
5.3 Sustainability
6.28% of the earnings are spent on dividend by CAL. This is a low number and sustainable payout ratio.
DP6.28%
EPS Next 2Y5.23%
EPS Next 3Y6.46%
CALERES INC
NYSE:CAL (11/14/2024, 1:00:49 PM)
31.01
-0.75 (-2.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.09B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 6.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.76% | ||
| ROE | 25.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.64% | ||
| PM (TTM) | 5.6% | ||
| GM | 45.19% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)5.6%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-2.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.8%
Revenue growth 3Y9.99%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y