G-III APPAREL GROUP LTD (GIII) Stock Fundamental Analysis
NASDAQ:GIII - Nasdaq - US36237H1014 - Common Stock - Currency: USD
GIII gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. While GIII has a great health rating, its profitability is only average at the moment. GIII is cheap, but on the other hand it scores bad on growth. These ratings could make GIII a good candidate for value investing.
1. Profitability
1.1 Basic Checks
GIII had positive earnings in the past year.
In the past year GIII had a positive cash flow from operations.
Of the past 5 years GIII 4 years were profitable.
Of the past 5 years GIII 4 years had a positive operating cash flow.
1.2 Ratios
GIII has a Return On Assets of 6.24%. This is in the better half of the industry: GIII outperforms 71.43% of its industry peers.
GIII has a better Return On Equity (10.53%) than 65.31% of its industry peers.
The Return On Invested Capital of GIII (9.12%) is better than 63.27% of its industry peers.
GIII had an Average Return On Invested Capital over the past 3 years of 9.45%. This is below the industry average of 11.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 10.53% | ||
| ROIC | 9.12% |
ROA(3y)2.99%
ROA(5y)3.11%
ROE(3y)4.98%
ROE(5y)5.57%
ROIC(3y)9.45%
ROIC(5y)8.25%
1.3 Margins
GIII's Profit Margin of 5.59% is fine compared to the rest of the industry. GIII outperforms 67.35% of its industry peers.
In the last couple of years the Profit Margin of GIII has grown nicely.
With a decent Operating Margin value of 8.83%, GIII is doing good in the industry, outperforming 63.27% of the companies in the same industry.
In the last couple of years the Operating Margin of GIII has grown nicely.
GIII has a Gross Margin of 40.21%. This is in the lower half of the industry: GIII underperforms 71.43% of its industry peers.
In the last couple of years the Gross Margin of GIII has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.83% | ||
| PM (TTM) | 5.59% | ||
| GM | 40.21% |
OM growth 3Y23.99%
OM growth 5Y4.69%
PM growth 3Y70.68%
PM growth 5Y4.84%
GM growth 3Y3.43%
GM growth 5Y2.18%
2. Health
2.1 Basic Checks
GIII has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GIII has been reduced compared to 1 year ago.
Compared to 5 years ago, GIII has less shares outstanding
Compared to 1 year ago, GIII has an improved debt to assets ratio.
2.2 Solvency
GIII has an Altman-Z score of 3.19. This indicates that GIII is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.19, GIII is in the better half of the industry, outperforming 61.22% of the companies in the same industry.
The Debt to FCF ratio of GIII is 0.74, which is an excellent value as it means it would take GIII, only 0.74 years of fcf income to pay off all of its debts.
GIII has a better Debt to FCF ratio (0.74) than 87.76% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that GIII is not too dependend on debt financing.
GIII's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. GIII outperforms 65.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.74 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.96
WACC9.48%
2.3 Liquidity
GIII has a Current Ratio of 2.63. This indicates that GIII is financially healthy and has no problem in meeting its short term obligations.
GIII's Current ratio of 2.63 is fine compared to the rest of the industry. GIII outperforms 71.43% of its industry peers.
A Quick Ratio of 1.75 indicates that GIII should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.75, GIII belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
GIII shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.26%.
GIII shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.24% yearly.
GIII shows a decrease in Revenue. In the last year, the revenue decreased by -2.57%.
Measured over the past years, GIII shows a small growth in Revenue. The Revenue has been growing by 0.14% on average per year.
EPS 1Y (TTM)7.26%
EPS 3Y62.99%
EPS 5Y7.24%
EPS Q2Q%-6.83%
Revenue 1Y (TTM)-2.57%
Revenue growth 3Y14.66%
Revenue growth 5Y0.14%
Sales Q2Q%1.84%
3.2 Future
GIII is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.76% yearly.
Based on estimates for the next years, GIII will show a decrease in Revenue. The Revenue will decrease by -0.87% on average per year.
EPS Next Y4.05%
EPS Next 2Y1.7%
EPS Next 3Y-0.76%
EPS Next 5YN/A
Revenue Next Year-0.16%
Revenue Next 2Y1.39%
Revenue Next 3Y-0.58%
Revenue Next 5Y-0.87%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.05, the valuation of GIII can be described as very cheap.
GIII's Price/Earnings ratio is rather cheap when compared to the industry. GIII is cheaper than 95.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of GIII to the average of the S&P500 Index (29.63), we can say GIII is valued rather cheaply.
A Price/Forward Earnings ratio of 6.68 indicates a rather cheap valuation of GIII.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GIII indicates a rather cheap valuation: GIII is cheaper than 97.96% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GIII to the average of the S&P500 Index (22.68), we can say GIII is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.05 | ||
| Fwd PE | 6.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIII is valued cheaper than 97.96% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GIII is valued cheaply inside the industry as 93.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.07 | ||
| EV/EBITDA | 4.57 |
4.3 Compensation for Growth
GIII's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GIII has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.74
PEG (5Y)0.97
EPS Next 2Y1.7%
EPS Next 3Y-0.76%
5. Dividend
5.1 Amount
GIII does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.13
-0.72 (-2.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners102.15%
Inst Owner Change0.31%
Ins Owners13.15%
Ins Owner Change-3.67%
Market Cap1.23B
Analysts76.36
Price Target37.13 (31.99%)
Short Float %11.99%
Short Ratio9.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)49.58%
Min EPS beat(2)12%
Max EPS beat(2)87.15%
EPS beat(4)4
Avg EPS beat(4)158.94%
Min EPS beat(4)10.36%
Max EPS beat(4)526.26%
EPS beat(8)7
Avg EPS beat(8)482.11%
EPS beat(12)9
Avg EPS beat(12)323.77%
EPS beat(16)13
Avg EPS beat(16)281.59%
Revenue beat(2)0
Avg Revenue beat(2)-2.82%
Min Revenue beat(2)-2.97%
Max Revenue beat(2)-2.67%
Revenue beat(4)0
Avg Revenue beat(4)-4.23%
Min Revenue beat(4)-8.28%
Max Revenue beat(4)-2.67%
Revenue beat(8)3
Avg Revenue beat(8)0%
Revenue beat(12)5
Avg Revenue beat(12)0.91%
Revenue beat(16)7
Avg Revenue beat(16)1.07%
PT rev (1m)0%
PT rev (3m)15.56%
EPS NQ rev (1m)-15.28%
EPS NQ rev (3m)45.35%
EPS NY rev (1m)1.5%
EPS NY rev (3m)3.3%
Revenue NQ rev (1m)-4.61%
Revenue NQ rev (3m)0.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.05 | ||
| Fwd PE | 6.68 | ||
| P/S | 0.4 | ||
| P/FCF | 4.07 | ||
| P/OCF | 3.59 | ||
| P/B | 0.75 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 4.57 |
EPS(TTM)3.99
EY14.18%
EPS(NY)4.21
Fwd EY14.97%
FCF(TTM)6.92
FCFY24.58%
OCF(TTM)7.84
OCFY27.89%
SpS70.77
BVpS37.56
TBVpS22.49
PEG (NY)1.74
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 10.53% | ||
| ROCE | 12.56% | ||
| ROIC | 9.12% | ||
| ROICexc | 9.58% | ||
| ROICexgc | 14.05% | ||
| OM | 8.83% | ||
| PM (TTM) | 5.59% | ||
| GM | 40.21% | ||
| FCFM | 9.77% |
ROA(3y)2.99%
ROA(5y)3.11%
ROE(3y)4.98%
ROE(5y)5.57%
ROIC(3y)9.45%
ROIC(5y)8.25%
ROICexc(3y)11.61%
ROICexc(5y)9.9%
ROICexgc(3y)19.12%
ROICexgc(5y)16.59%
ROCE(3y)13.02%
ROCE(5y)11.35%
ROICexcg growth 3Y38.49%
ROICexcg growth 5Y0.26%
ROICexc growth 3Y42.25%
ROICexc growth 5Y3.26%
OM growth 3Y23.99%
OM growth 5Y4.69%
PM growth 3Y70.68%
PM growth 5Y4.84%
GM growth 3Y3.43%
GM growth 5Y2.18%
F-Score7
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.74 | ||
| Debt/EBITDA | 0.71 | ||
| Cap/Depr | 140.16% | ||
| Cap/Sales | 1.31% | ||
| Interest Coverage | 11.72 | ||
| Cash Conversion | 113.54% | ||
| Profit Quality | 174.8% | ||
| Current Ratio | 2.63 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | 3.19 |
F-Score7
WACC9.48%
ROIC/WACC0.96
Cap/Depr(3y)93.71%
Cap/Depr(5y)84.16%
Cap/Sales(3y)0.87%
Cap/Sales(5y)0.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.26%
EPS 3Y62.99%
EPS 5Y7.24%
EPS Q2Q%-6.83%
EPS Next Y4.05%
EPS Next 2Y1.7%
EPS Next 3Y-0.76%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.57%
Revenue growth 3Y14.66%
Revenue growth 5Y0.14%
Sales Q2Q%1.84%
Revenue Next Year-0.16%
Revenue Next 2Y1.39%
Revenue Next 3Y-0.58%
Revenue Next 5Y-0.87%
EBIT growth 1Y-8.65%
EBIT growth 3Y42.17%
EBIT growth 5Y4.84%
EBIT Next Year6.29%
EBIT Next 3Y0.32%
EBIT Next 5YN/A
FCF growth 1Y229.65%
FCF growth 3Y112.33%
FCF growth 5Y49.81%
OCF growth 1Y260.81%
OCF growth 3Y98.79%
OCF growth 5Y41.44%