CALERES INC (CAL) Stock Fundamental Analysis
NYSE:CAL - New York Stock Exchange, Inc. - US1295001044 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to CAL. CAL was compared to 121 industry peers in the Specialty Retail industry. CAL scores excellent on profitability, but there are some minor concerns on its financial health. CAL may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make CAL a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year CAL was profitable.
In the past year CAL had a positive cash flow from operations.
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's Return On Assets of 9.29% is amongst the best of the industry. CAL outperforms 83.90% of its industry peers.
CAL has a better Return On Equity (30.37%) than 84.75% of its industry peers.
The Return On Invested Capital of CAL (14.26%) is better than 83.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAL is above the industry average of 14.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.29% | ||
| ROE | 30.37% | ||
| ROIC | 14.26% |
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
Looking at the Profit Margin, with a value of 5.28%, CAL is in the better half of the industry, outperforming 77.97% of the companies in the same industry.
CAL's Operating Margin of 6.42% is fine compared to the rest of the industry. CAL outperforms 72.88% of its industry peers.
CAL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 45.40%, CAL is in the better half of the industry, outperforming 71.19% 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 | 6.42% | ||
| PM (TTM) | 5.28% | ||
| GM | 45.4% |
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.
CAL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CAL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.73 indicates that CAL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CAL (2.73) is better than 62.71% of its industry peers.
The Debt to FCF ratio of CAL is 3.60, which is a good value as it means it would take CAL, 3.60 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.60, CAL is in the better half of the industry, outperforming 66.95% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that CAL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.40, CAL is in line with its industry, outperforming 50.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 3.6 | ||
| Altman-Z | 2.73 |
ROIC/WACC1.33
WACC10.71%
2.3 Liquidity
A Current Ratio of 1.08 indicates that CAL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.08, CAL is not doing good in the industry: 72.88% of the companies in the same industry are doing better.
A Quick Ratio of 0.35 indicates that CAL may have some problems paying its short term obligations.
The Quick ratio of CAL (0.35) is worse than 61.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The earnings per share for CAL have decreased by -3.78% in the last year.
The Earnings Per Share has been growing by 13.59% on average over the past years. This is quite good.
The Revenue has grown by 22.13% in the past year. This is a very strong growth!
The Revenue has been decreasing by -0.12% on average over the past years.
EPS 1Y (TTM)-3.78%
EPS 3YN/A
EPS 5Y13.59%
EPS Q2Q%-10.22%
Revenue 1Y (TTM)22.13%
Revenue growth 3Y9.99%
Revenue growth 5Y-0.12%
Sales Q2Q%-2.75%
3.2 Future
CAL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.67% yearly.
CAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.91% yearly.
EPS Next Y-21.87%
EPS Next 2Y-5.15%
EPS Next 3Y0.78%
EPS Next 5Y0.67%
Revenue Next Year-3.24%
Revenue Next 2Y-0.11%
Revenue Next 3Y0.84%
Revenue Next 5Y0.91%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 4.21, which indicates a rather cheap valuation of CAL.
CAL's Price/Earnings ratio is rather cheap when compared to the industry. CAL is cheaper than 99.15% of the companies in the same industry.
When comparing the Price/Earnings ratio of CAL to the average of the S&P500 Index (29.75), we can say CAL is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.28, the valuation of CAL can be described as very cheap.
CAL's Price/Forward Earnings ratio is rather cheap when compared to the industry. CAL is cheaper than 99.15% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.44, CAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.21 | ||
| Fwd PE | 4.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAL indicates a rather cheap valuation: CAL is cheaper than 99.15% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAL indicates a rather cheap valuation: CAL is cheaper than 85.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.17 | ||
| EV/EBITDA | 1.84 |
4.3 Compensation for Growth
The decent profitability rating of CAL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-5.15%
EPS Next 3Y0.78%
5. Dividend
5.1 Amount
CAL has a Yearly Dividend Yield of 1.75%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of CAL has falen by -40.77%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CAL's Dividend Yield is a higher than the industry average which is at 4.77.
Compared to the average S&P500 Dividend Yield of 2.30, CAL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
The dividend of CAL decreases each year by -0.22%.
CAL has been paying a dividend for at least 10 years, so it has a reliable track record.
CAL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.22%
Div Incr Years0
Div Non Decr Years25
5.3 Sustainability
5.40% of the earnings are spent on dividend by CAL. This is a low number and sustainable payout ratio.
DP5.4%
EPS Next 2Y-5.15%
EPS Next 3Y0.78%
16.1
-0.06 (-0.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners95.96%
Inst Owner Change-4.12%
Ins Owners3.61%
Ins Owner Change-1.06%
Market Cap541.44M
Analysts74.29
Price Target28.22 (75.28%)
Short Float %10.19%
Short Ratio4.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend0.28
Dividend Growth(5Y)-0.22%
DP5.4%
Div Incr Years0
Div Non Decr Years25
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-20.57%
Min EPS beat(2)-31.02%
Max EPS beat(2)-10.12%
EPS beat(4)0
Avg EPS beat(4)-11.42%
Min EPS beat(4)-31.02%
Max EPS beat(4)-0.29%
EPS beat(8)3
Avg EPS beat(8)-3.59%
EPS beat(12)7
Avg EPS beat(12)5.7%
EPS beat(16)11
Avg EPS beat(16)139.75%
Revenue beat(2)0
Avg Revenue beat(2)-4.45%
Min Revenue beat(2)-6.53%
Max Revenue beat(2)-2.36%
Revenue beat(4)0
Avg Revenue beat(4)-2.85%
Min Revenue beat(4)-6.53%
Max Revenue beat(4)-0.59%
Revenue beat(8)0
Avg Revenue beat(8)-2.81%
Revenue beat(12)2
Avg Revenue beat(12)-1.29%
Revenue beat(16)6
Avg Revenue beat(16)0.25%
PT rev (1m)0%
PT rev (3m)-24.55%
EPS NQ rev (1m)-25%
EPS NQ rev (3m)-71.43%
EPS NY rev (1m)-2.71%
EPS NY rev (3m)-20.02%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.21 | ||
| Fwd PE | 4.28 | ||
| P/S | 0.16 | ||
| P/FCF | 8.17 | ||
| P/OCF | 4.56 | ||
| P/B | 0.9 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 1.84 |
EPS(TTM)3.82
EY23.73%
EPS(NY)3.76
Fwd EY23.36%
FCF(TTM)1.97
FCFY12.24%
OCF(TTM)3.53
OCFY21.95%
SpS102.28
BVpS17.79
TBVpS11.99
PEG (NY)N/A
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.29% | ||
| ROE | 30.37% | ||
| ROCE | 19.22% | ||
| ROIC | 14.26% | ||
| ROICexc | 14.61% | ||
| ROICexgc | 17.07% | ||
| OM | 6.42% | ||
| PM (TTM) | 5.28% | ||
| GM | 45.4% | ||
| FCFM | 1.93% |
ROA(3y)8.57%
ROA(5y)0.94%
ROE(3y)37.34%
ROE(5y)-19.58%
ROIC(3y)16.15%
ROIC(5y)N/A
ROICexc(3y)16.56%
ROICexc(5y)N/A
ROICexgc(3y)20.48%
ROICexgc(5y)N/A
ROCE(3y)23.31%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y4.21%
ROICexc growth 3YN/A
ROICexc growth 5Y12.44%
OM growth 3YN/A
OM growth 5Y11.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.81%
GM growth 5Y1.91%
F-Score8
Asset Turnover1.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 3.6 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 92.96% | ||
| Cap/Sales | 1.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 42.81% | ||
| Profit Quality | 36.46% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 2.73 |
F-Score8
WACC10.71%
ROIC/WACC1.33
Cap/Depr(3y)89.91%
Cap/Depr(5y)76.58%
Cap/Sales(3y)1.6%
Cap/Sales(5y)1.51%
Profit Quality(3y)78.92%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.78%
EPS 3YN/A
EPS 5Y13.59%
EPS Q2Q%-10.22%
EPS Next Y-21.87%
EPS Next 2Y-5.15%
EPS Next 3Y0.78%
EPS Next 5Y0.67%
Revenue 1Y (TTM)22.13%
Revenue growth 3Y9.99%
Revenue growth 5Y-0.12%
Sales Q2Q%-2.75%
Revenue Next Year-3.24%
Revenue Next 2Y-0.11%
Revenue Next 3Y0.84%
Revenue Next 5Y0.91%
EBIT growth 1Y13.97%
EBIT growth 3YN/A
EBIT growth 5Y11.24%
EBIT Next Year7.21%
EBIT Next 3Y6.96%
EBIT Next 5Y4.69%
FCF growth 1Y321.6%
FCF growth 3Y13.01%
FCF growth 5Y19.14%
OCF growth 1Y375.29%
OCF growth 3Y16.56%
OCF growth 5Y9.08%