GUESS? INC (GES)
US4016171054 - Common Stock
Taking everything into account, GES scores 6 out of 10 in our fundamental rating. GES was compared to 123 industry peers in the Specialty Retail industry. While GES belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GES may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make GES suitable for value investing!
1. Profitability
1.1 Basic Checks
GES had positive earnings in the past year.
GES had a positive operating cash flow in the past year.
Of the past 5 years GES 4 years were profitable.
Each year in the past 5 years GES had a positive operating cash flow.
1.2 Ratios
GES has a Return On Assets of 6.72%. This is in the better half of the industry: GES outperforms 75.21% of its industry peers.
Looking at the Return On Equity, with a value of 37.98%, GES belongs to the top of the industry, outperforming 85.95% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.82%, GES is in the better half of the industry, outperforming 76.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GES is in line with the industry average of 12.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.72% | ||
| ROE | 37.98% | ||
| ROIC | 9.82% |
ROA(3y)7.09%
ROA(5y)4.38%
ROE(3y)29.12%
ROE(5y)17.45%
ROIC(3y)13.67%
ROIC(5y)9.81%
1.3 Margins
GES has a Profit Margin of 6.51%. This is amongst the best in the industry. GES outperforms 82.64% of its industry peers.
GES's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 7.71%, GES is doing good in the industry, outperforming 78.51% of the companies in the same industry.
GES's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 44.10%, GES is in the better half of the industry, outperforming 68.59% of the companies in the same industry.
GES's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.71% | ||
| PM (TTM) | 6.51% | ||
| GM | 44.1% |
OM growth 3Y119.75%
OM growth 5Y19.33%
PM growth 3YN/A
PM growth 5Y72.4%
GM growth 3Y5.83%
GM growth 5Y4.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GES is creating value.
GES has less shares outstanding than it did 1 year ago.
GES has less shares outstanding than it did 5 years ago.
GES has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.34 indicates that GES is not a great score, but indicates only limited risk for bankruptcy at the moment.
GES's Altman-Z score of 2.34 is in line compared to the rest of the industry. GES outperforms 47.93% of its industry peers.
GES has a debt to FCF ratio of 2.59. This is a good value and a sign of high solvency as GES would need 2.59 years to pay back of all of its debts.
GES's Debt to FCF ratio of 2.59 is fine compared to the rest of the industry. GES outperforms 73.55% of its industry peers.
GES has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
GES's Debt to Equity ratio of 1.10 is in line compared to the rest of the industry. GES outperforms 42.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 2.34 |
ROIC/WACC2.2
WACC4.46%
2.3 Liquidity
A Current Ratio of 1.47 indicates that GES should not have too much problems paying its short term obligations.
GES has a Current ratio of 1.47. This is comparable to the rest of the industry: GES outperforms 57.02% of its industry peers.
GES has a Quick Ratio of 1.47. This is a bad value and indicates that GES is not financially healthy enough and could expect problems in meeting its short term obligations.
GES's Quick ratio of 0.76 is fine compared to the rest of the industry. GES outperforms 66.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for GES have decreased by -6.36% in the last year.
The Earnings Per Share has been growing by 26.83% on average over the past years. This is a very strong growth
Looking at the last year, GES shows a small growth in Revenue. The Revenue has grown by 6.75% in the last year.
GES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.25% yearly.
EPS 1Y (TTM)-6.36%
EPS 3YN/A
EPS 5Y26.83%
EPS Q2Q%-41.67%
Revenue 1Y (TTM)6.75%
Revenue growth 3Y13.95%
Revenue growth 5Y1.25%
Sales Q2Q%10.24%
3.2 Future
The Earnings Per Share is expected to decrease by -4.11% on average over the next years.
The Revenue is expected to grow by 6.09% on average over the next years.
EPS Next Y-19.54%
EPS Next 2Y-4.99%
EPS Next 3Y-4.11%
EPS Next 5YN/A
Revenue Next Year11.45%
Revenue Next 2Y8.06%
Revenue Next 3Y6.09%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.53, 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 98.35% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.12. GES is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.08, the valuation of GES can be described as very cheap.
Based on the Price/Forward Earnings ratio, GES is valued cheaper than 98.35% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GES to the average of the S&P500 Index (23.79), we can say GES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.53 | ||
| Fwd PE | 6.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GES is valued cheaply inside the industry as 93.39% of the companies are valued more expensively.
GES's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GES is cheaper than 99.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.97 | ||
| EV/EBITDA | 4.41 |
4.3 Compensation for Growth
The decent profitability rating of GES may justify a higher PE ratio.
A cheap valuation may be justified as GES's earnings are expected to decrease with -4.11% in the coming years.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-4.99%
EPS Next 3Y-4.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.88%, GES is a good candidate for dividend investing.
In the last 3 months the price of GES has falen by -23.11%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.01, GES pays a better dividend. On top of this GES pays more dividend than 97.52% of the companies listed in the same industry.
GES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.88% |
5.2 History
The dividend of GES has a limited annual growth rate of 5.24%.
GES has paid a dividend for at least 10 years, which is a reliable track record.
GES has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.24%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
GES pays out 98.92% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of GES has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP98.92%
EPS Next 2Y-4.99%
EPS Next 3Y-4.11%
GUESS? INC
NYSE:GES (11/12/2024, 7:03:27 PM)
After market: 17.3 0 (0%)17.3
-0.13 (-0.75%)
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 Cap889.57M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.88% |
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 | 6.53 | ||
| Fwd PE | 6.08 | ||
| 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)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.72% | ||
| ROE | 37.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.71% | ||
| PM (TTM) | 6.51% | ||
| GM | 44.1% | ||
| 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 Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.76 | ||
| 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)-6.36%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-19.54%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.75%
Revenue growth 3Y13.95%
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