G-III APPAREL GROUP LTD (GIII) Stock Fundamental Analysis
USA - NASDAQ:GIII - US36237H1014 - Common Stock
25.6 USD
+0.54 (+2.15%)
25.6 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GIII. GIII was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. GIII has an excellent financial health rating, but there are some minor concerns on its profitability. GIII is cheap, but on the other hand it scores bad on growth. With these ratings, GIII could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year GIII was profitable.
GIII had a positive operating cash flow in the past year.
GIII had positive earnings in 4 of the past 5 years.
GIII had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of GIII (6.77%) is better than 77.08% of its industry peers.
GIII has a Return On Equity (10.67%) which is in line with its industry peers.
GIII has a better Return On Invested Capital (9.69%) than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GIII is below the industry average of 12.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 10.67% | ||
| ROIC | 9.69% |
ROA(3y)3.15%
ROA(5y)3.55%
ROE(3y)4.43%
ROE(5y)5.65%
ROIC(3y)9.69%
ROIC(5y)8.57%
1.3 Margins
The Profit Margin of GIII (5.84%) is better than 77.08% of its industry peers.
GIII's Profit Margin has improved in the last couple of years.
GIII's Operating Margin of 8.68% is fine compared to the rest of the industry. GIII outperforms 72.92% of its industry peers.
GIII's Operating Margin has improved in the last couple of years.
GIII's Gross Margin of 40.37% is on the low side compared to the rest of the industry. GIII is outperformed by 68.75% of its industry peers.
In the last couple of years the Gross Margin of GIII has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.68% | ||
| PM (TTM) | 5.84% | ||
| GM | 40.37% |
OM growth 3Y-5.71%
OM growth 5Y3.91%
PM growth 3Y-5.67%
PM growth 5Y5.99%
GM growth 3Y4.55%
GM growth 5Y2.91%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GIII 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
GIII has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.23 indicates that GIII is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.23, GIII is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
GIII has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.04, GIII belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
GIII has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
GIII has a better Debt to Equity ratio (0.00) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 3.23 |
ROIC/WACC0.9
WACC10.72%
2.3 Liquidity
A Current Ratio of 2.21 indicates that GIII has no problem at all paying its short term obligations.
GIII has a Current ratio of 2.21. This is in the better half of the industry: GIII outperforms 66.67% of its industry peers.
A Quick Ratio of 1.26 indicates that GIII should not have too much problems paying its short term obligations.
GIII's Quick ratio of 1.26 is fine compared to the rest of the industry. GIII outperforms 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
GIII shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.87%.
GIII shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.92% yearly.
Looking at the last year, GIII shows a small growth in Revenue. The Revenue has grown by 1.19% in the last year.
GIII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.13% yearly.
EPS 1Y (TTM)2.87%
EPS 3Y3.49%
EPS 5Y6.92%
EPS Q2Q%-51.92%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y4.76%
Revenue growth 5Y0.13%
Sales Q2Q%-4.88%
3.2 Future
The Earnings Per Share is expected to decrease by -9.72% on average over the next years.
Based on estimates for the next years, GIII will show a decrease in Revenue. The Revenue will decrease by -1.04% on average per year.
EPS Next Y-39.88%
EPS Next 2Y-19.85%
EPS Next 3Y-9.72%
EPS Next 5YN/A
Revenue Next Year-4.17%
Revenue Next 2Y-3.34%
Revenue Next 3Y-4.17%
Revenue Next 5Y-1.04%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.95, which indicates a rather cheap valuation of GIII.
GIII's Price/Earnings ratio is rather cheap when compared to the industry. GIII is cheaper than 93.75% of the companies in the same industry.
GIII is valuated cheaply when we compare the Price/Earnings ratio to 27.34, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.86, the valuation of GIII can be described as very reasonable.
Based on the Price/Forward Earnings ratio, GIII is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.86. GIII is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.95 | ||
| Fwd PE | 8.86 |
4.2 Price Multiples
97.92% of the companies in the same industry are more expensive than GIII, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GIII is valued cheaper than 97.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.06 | ||
| EV/EBITDA | 2.66 |
4.3 Compensation for Growth
The decent profitability rating of GIII may justify a higher PE ratio.
A cheap valuation may be justified as GIII's earnings are expected to decrease with -9.72% in the coming years.
PEG (NY)N/A
PEG (5Y)0.86
EPS Next 2Y-19.85%
EPS Next 3Y-9.72%
5. Dividend
5.1 Amount
No dividends for GIII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.6
+0.54 (+2.15%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners106.16%
Inst Owner Change0.02%
Ins Owners14.59%
Ins Owner Change1.93%
Market Cap1.08B
Analysts48.89
Price Target28.05 (9.57%)
Short Float %17.6%
Short Ratio10.59
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)108.81%
Min EPS beat(2)49.02%
Max EPS beat(2)168.6%
EPS beat(4)4
Avg EPS beat(4)64.57%
Min EPS beat(4)12%
Max EPS beat(4)168.6%
EPS beat(8)8
Avg EPS beat(8)114.27%
EPS beat(12)10
Avg EPS beat(12)339.59%
EPS beat(16)13
Avg EPS beat(16)259.35%
Revenue beat(2)1
Avg Revenue beat(2)1.91%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)5.24%
Revenue beat(4)2
Avg Revenue beat(4)0.69%
Min Revenue beat(4)-2.97%
Max Revenue beat(4)5.24%
Revenue beat(8)2
Avg Revenue beat(8)-2.37%
Revenue beat(12)5
Avg Revenue beat(12)0.38%
Revenue beat(16)7
Avg Revenue beat(16)0.93%
PT rev (1m)8.91%
PT rev (3m)8.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.71%
EPS NY rev (1m)-10.11%
EPS NY rev (3m)-10.11%
Revenue NQ rev (1m)-2.18%
Revenue NQ rev (3m)-8.11%
Revenue NY rev (1m)-1.03%
Revenue NY rev (3m)-3.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.95 | ||
| Fwd PE | 8.86 | ||
| P/S | 0.35 | ||
| P/FCF | 3.06 | ||
| P/OCF | 2.77 | ||
| P/B | 0.63 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 2.66 |
EPS(TTM)4.3
EY16.8%
EPS(NY)2.89
Fwd EY11.29%
FCF(TTM)8.38
FCFY32.73%
OCF(TTM)9.25
OCFY36.12%
SpS73.97
BVpS40.47
TBVpS24.72
PEG (NY)N/A
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 10.67% | ||
| ROCE | 13.43% | ||
| ROIC | 9.69% | ||
| ROICexc | 11.39% | ||
| ROICexgc | 18.58% | ||
| OM | 8.68% | ||
| PM (TTM) | 5.84% | ||
| GM | 40.37% | ||
| FCFM | 11.33% |
ROA(3y)3.15%
ROA(5y)3.55%
ROE(3y)4.43%
ROE(5y)5.65%
ROIC(3y)9.69%
ROIC(5y)8.57%
ROICexc(3y)11.32%
ROICexc(5y)10.23%
ROICexgc(3y)17.88%
ROICexgc(5y)16.73%
ROCE(3y)13.44%
ROCE(5y)11.88%
ROICexcg growth 3Y-5.29%
ROICexcg growth 5Y1.41%
ROICexc growth 3Y-1.7%
ROICexc growth 5Y3.6%
OM growth 3Y-5.71%
OM growth 5Y3.91%
PM growth 3Y-5.67%
PM growth 5Y5.99%
GM growth 3Y4.55%
GM growth 5Y2.91%
F-Score6
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 134.82% | ||
| Cap/Sales | 1.17% | ||
| Interest Coverage | 12.52 | ||
| Cash Conversion | 130.9% | ||
| Profit Quality | 194.12% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 3.23 |
F-Score6
WACC10.72%
ROIC/WACC0.9
Cap/Depr(3y)106.1%
Cap/Depr(5y)94.77%
Cap/Sales(3y)0.92%
Cap/Sales(5y)0.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.87%
EPS 3Y3.49%
EPS 5Y6.92%
EPS Q2Q%-51.92%
EPS Next Y-39.88%
EPS Next 2Y-19.85%
EPS Next 3Y-9.72%
EPS Next 5YN/A
Revenue 1Y (TTM)1.19%
Revenue growth 3Y4.76%
Revenue growth 5Y0.13%
Sales Q2Q%-4.88%
Revenue Next Year-4.17%
Revenue Next 2Y-3.34%
Revenue Next 3Y-4.17%
Revenue Next 5Y-1.04%
EBIT growth 1Y-9.13%
EBIT growth 3Y-1.22%
EBIT growth 5Y4.04%
EBIT Next Year-30.59%
EBIT Next 3Y-9.34%
EBIT Next 5YN/A
FCF growth 1Y82.65%
FCF growth 3Y21.23%
FCF growth 5Y9.96%
OCF growth 1Y79.27%
OCF growth 3Y19.42%
OCF growth 5Y8.65%