MOVADO GROUP INC (MOV) Stock Fundamental Analysis
NYSE:MOV - New York Stock Exchange, Inc. - US6245801062 - Common Stock - Currency: USD
Taking everything into account, MOV scores 6 out of 10 in our fundamental rating. MOV was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. MOV has an excellent financial health rating, but there are some minor concerns on its profitability. MOV has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MOV was profitable.
MOV had a positive operating cash flow in the past year.
Of the past 5 years MOV 4 years were profitable.
Each year in the past 5 years MOV had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MOV (4.76%) is better than 67.35% of its industry peers.
MOV has a Return On Equity (7.17%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.01%, MOV is in line with its industry, outperforming 42.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MOV is in line with the industry average of 11.63%.
The 3 year average ROIC (12.23%) for MOV is well above the current ROIC(5.01%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 7.17% | ||
| ROIC | 5.01% |
ROA(3y)10.03%
ROA(5y)3.93%
ROE(3y)15.68%
ROE(5y)5.78%
ROIC(3y)12.23%
ROIC(5y)8.97%
1.3 Margins
MOV has a Profit Margin of 5.45%. This is in the better half of the industry: MOV outperforms 63.27% of its industry peers.
MOV's Profit Margin has declined in the last couple of years.
The Operating Margin of MOV (6.11%) is comparable to the rest of the industry.
MOV's Operating Margin has declined in the last couple of years.
MOV has a Gross Margin of 54.42%. This is in the better half of the industry: MOV outperforms 67.35% of its industry peers.
In the last couple of years the Gross Margin of MOV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.11% | ||
| PM (TTM) | 5.45% | ||
| GM | 54.42% |
OM growth 3Y15.98%
OM growth 5Y-2.33%
PM growth 3YN/A
PM growth 5Y-5.19%
GM growth 3Y0.93%
GM growth 5Y0.26%
2. Health
2.1 Basic Checks
MOV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, MOV has more shares outstanding
Compared to 5 years ago, MOV has less shares outstanding
MOV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.59 indicates that MOV is not in any danger for bankruptcy at the moment.
MOV has a Altman-Z score of 3.59. This is in the better half of the industry: MOV outperforms 71.43% of its industry peers.
MOV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.59 |
ROIC/WACC0.5
WACC9.98%
2.3 Liquidity
MOV has a Current Ratio of 4.41. This indicates that MOV is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MOV (4.41) is better than 95.92% of its industry peers.
A Quick Ratio of 2.92 indicates that MOV has no problem at all paying its short term obligations.
The Quick ratio of MOV (2.92) is better than 95.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.41 | ||
| Quick Ratio | 2.92 |
3. Growth
3.1 Past
MOV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.64%.
Measured over the past years, MOV shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.42% on average per year.
The Revenue for MOV has decreased by -10.55% in the past year. This is quite bad
Measured over the past years, MOV shows a decrease in Revenue. The Revenue has been decreasing by -0.21% on average per year.
EPS 1Y (TTM)-53.64%
EPS 3Y32.77%
EPS 5Y-4.42%
EPS Q2Q%-51.95%
Revenue 1Y (TTM)-10.55%
Revenue growth 3Y9.92%
Revenue growth 5Y-0.21%
Sales Q2Q%-2.64%
3.2 Future
The Earnings Per Share is expected to grow by 9.75% on average over the next years. This is quite good.
MOV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.67% yearly.
EPS Next Y-56.85%
EPS Next 2Y9.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.9%
Revenue Next 2Y1.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 16.64, which indicates a correct valuation of MOV.
MOV's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.36, MOV is valued a bit cheaper.
With a Price/Forward Earnings ratio of 7.85, the valuation of MOV can be described as very cheap.
Based on the Price/Forward Earnings ratio, MOV is valued cheaply inside the industry as 91.84% of the companies are valued more expensively.
MOV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 7.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MOV is valued cheaply inside the industry as 91.84% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MOV is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.57 | ||
| EV/EBITDA | 4.97 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MOV has a Yearly Dividend Yield of 7.02%, which is a nice return.
MOV's Dividend Yield is rather good when compared to the industry average which is at 2.87. MOV pays more dividend than 97.96% of the companies in the same industry.
MOV's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
5.2 History
On average, the dividend of MOV grows each year by 35.88%, which is quite nice.
MOV has paid a dividend for at least 10 years, which is a reliable track record.
MOV has decreased its dividend in the last 3 years.
Dividend Growth(5Y)35.88%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
85.74% of the earnings are spent on dividend by MOV. This is not a sustainable payout ratio.
The dividend of MOV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP85.74%
EPS Next 2Y9.75%
EPS Next 3YN/A
20.14
+0.02 (+0.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners92.22%
Inst Owner Change-90.92%
Ins Owners3.09%
Ins Owner Change0%
Market Cap445.90M
Analysts80
Price Target35.45 (76.02%)
Short Float %5.17%
Short Ratio5.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
Yearly Dividend2.4
Dividend Growth(5Y)35.88%
DP85.74%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.68%
Min EPS beat(2)-16.62%
Max EPS beat(2)7.26%
EPS beat(4)3
Avg EPS beat(4)9.79%
Min EPS beat(4)-16.62%
Max EPS beat(4)39.63%
EPS beat(8)7
Avg EPS beat(8)17.42%
EPS beat(12)11
Avg EPS beat(12)30.21%
EPS beat(16)15
Avg EPS beat(16)79.73%
Revenue beat(2)1
Avg Revenue beat(2)-1%
Min Revenue beat(2)-6.81%
Max Revenue beat(2)4.8%
Revenue beat(4)2
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-6.81%
Max Revenue beat(4)4.8%
Revenue beat(8)3
Avg Revenue beat(8)-1.8%
Revenue beat(12)6
Avg Revenue beat(12)0.58%
Revenue beat(16)9
Avg Revenue beat(16)4.09%
PT rev (1m)-8.55%
PT rev (3m)-8.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 7.85 | ||
| P/S | 0.67 | ||
| P/FCF | 18.57 | ||
| P/OCF | 14.08 | ||
| P/B | 0.88 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 4.97 |
EPS(TTM)1.21
EY6.01%
EPS(NY)2.57
Fwd EY12.74%
FCF(TTM)1.08
FCFY5.38%
OCF(TTM)1.43
OCFY7.1%
SpS29.96
BVpS22.77
TBVpS22.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 7.17% | ||
| ROCE | 6.33% | ||
| ROIC | 5.01% | ||
| ROICexc | 7.26% | ||
| ROICexgc | 7.37% | ||
| OM | 6.11% | ||
| PM (TTM) | 5.45% | ||
| GM | 54.42% | ||
| FCFM | 3.62% |
ROA(3y)10.03%
ROA(5y)3.93%
ROE(3y)15.68%
ROE(5y)5.78%
ROIC(3y)12.23%
ROIC(5y)8.97%
ROICexc(3y)21.09%
ROICexc(5y)15.02%
ROICexgc(3y)21.75%
ROICexgc(5y)16.07%
ROCE(3y)15.42%
ROCE(5y)11.31%
ROICexcg growth 3Y23.43%
ROICexcg growth 5Y-9.09%
ROICexc growth 3Y24.6%
ROICexc growth 5Y0.41%
OM growth 3Y15.98%
OM growth 5Y-2.33%
PM growth 3YN/A
PM growth 5Y-5.19%
GM growth 3Y0.93%
GM growth 5Y0.26%
F-Score5
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 83.05% | ||
| Cap/Sales | 1.16% | ||
| Interest Coverage | 135 | ||
| Cash Conversion | 63.69% | ||
| Profit Quality | 66.41% | ||
| Current Ratio | 4.41 | ||
| Quick Ratio | 2.92 | ||
| Altman-Z | 3.59 |
F-Score5
WACC9.98%
ROIC/WACC0.5
Cap/Depr(3y)67.18%
Cap/Depr(5y)60.7%
Cap/Sales(3y)1.01%
Cap/Sales(5y)1.1%
Profit Quality(3y)110.85%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-53.64%
EPS 3Y32.77%
EPS 5Y-4.42%
EPS Q2Q%-51.95%
EPS Next Y-56.85%
EPS Next 2Y9.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.55%
Revenue growth 3Y9.92%
Revenue growth 5Y-0.21%
Sales Q2Q%-2.64%
Revenue Next Year-0.9%
Revenue Next 2Y1.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-52.3%
EBIT growth 3Y27.49%
EBIT growth 5Y-2.54%
EBIT Next Year-7.48%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-68.29%
FCF growth 3Y1.62%
FCF growth 5Y-1.85%
OCF growth 1Y-61.71%
OCF growth 3Y3.93%
OCF growth 5Y-2.29%