NYSE:GES appears to be flying under the radar despite its strong fundamentals.

Discover GUESS? INC (NYSE:GES)—an undervalued stock our stock screener has picked out. NYSE:GES demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Valuation Insights: NYSE:GES

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:GES boasts a 8 out of 10:

• Based on the Price/Earnings ratio of 7.66, the valuation of GES can be described as very cheap.
• Based on the Price/Earnings ratio, GES is valued cheaply inside the industry as 90.84% of the companies are valued more expensively.
• GES's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.54.
• Based on the Price/Forward Earnings ratio of 7.38, the valuation of GES can be described as very cheap.
• Based on the Price/Forward Earnings ratio, GES is valued cheaply inside the industry as 88.55% of the companies are valued more expensively.
• When comparing the Price/Forward Earnings ratio of GES to the average of the S&P500 Index (20.22), we can say GES is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, GES is valued cheaply inside the industry as 80.15% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of GES indicates a rather cheap valuation: GES is cheaper than 87.02% of the companies listed in the same industry.
• GES has an outstanding profitability rating, which may justify a higher PE ratio.

What does the Profitability looks like for NYSE:GES

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:GES, the assigned 8 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 7.49%, GES is in the better half of the industry, outperforming 73.28% of the companies in the same industry.
• GES's Return On Equity of 36.10% is amongst the best of the industry. GES outperforms 86.26% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 10.69%, GES is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
• The last Return On Invested Capital (10.69%) for GES is above the 3 year average (8.67%), which is a sign of increasing profitability.
• The Profit Margin of GES (6.87%) is better than 82.44% of its industry peers.
• In the last couple of years the Profit Margin of GES has grown nicely.
• GES has a Operating Margin of 8.52%. This is in the better half of the industry: GES outperforms 76.34% of its industry peers.
• GES's Operating Margin has improved in the last couple of years.
• GES has a better Gross Margin (43.62%) than 72.52% of its industry peers.
• In the last couple of years the Gross Margin of GES has grown nicely.

Health Assessment of NYSE:GES

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:GES has earned a 5 out of 10:

• GES's Altman-Z score of 2.69 is fine compared to the rest of the industry. GES outperforms 61.83% of its industry peers.
• GES has a debt to FCF ratio of 3.44. This is a good value and a sign of high solvency as GES would need 3.44 years to pay back of all of its debts.
• GES's Debt to FCF ratio of 3.44 is fine compared to the rest of the industry. GES outperforms 61.83% of its industry peers.
• The Quick ratio of GES (0.80) is better than 61.83% of its industry peers.

Analyzing Growth Metrics

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:GES has received a 4 out of 10:

• The Earnings Per Share has grown by an impressive 30.32% over the past year.
• GES shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.43% yearly.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of GES contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.