NYSE:GES is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: May 21, 2024

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.

Exploring NYSE:GES's Valuation

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:GES has earned a 8 for valuation:

A Price/Earnings ratio of 8.39 indicates a reasonable valuation of GES.
94.40% of the companies in the same industry are more expensive than GES, based on the Price/Earnings ratio.
GES's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.67.
With a Price/Forward Earnings ratio of 9.17, the valuation of GES can be described as very reasonable.
Based on the Price/Forward Earnings ratio, GES is valued cheaply inside the industry as 86.40% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, GES is valued rather cheaply.
GES's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GES is cheaper than 92.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GES is valued cheaply inside the industry as 95.20% of the companies are valued more expensively.
GES has an outstanding profitability rating, which may justify a higher PE ratio.

Understanding NYSE:GES's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:GES has earned a 8 out of 10:

GES has a better Return On Assets (8.32%) than 78.40% of its industry peers.
GES has a Return On Equity of 31.47%. This is amongst the best in the industry. GES outperforms 84.80% of its industry peers.
GES has a Return On Invested Capital of 12.75%. This is in the better half of the industry: GES outperforms 79.20% of its industry peers.
The Profit Margin of GES (7.76%) is better than 84.00% of its industry peers.
GES's Profit Margin has improved in the last couple of years.
GES's Operating Margin of 9.67% is amongst the best of the industry. GES outperforms 81.60% of its industry peers.
GES's Operating Margin has improved in the last couple of years.
GES has a Gross Margin of 44.03%. This is in the better half of the industry: GES outperforms 72.00% of its industry peers.
In the last couple of years the Gross Margin of GES has grown nicely.

How do we evaluate the Health for NYSE:GES?

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:GES, the assigned 6 for health provides valuable insights:

With a decent Altman-Z score value of 2.82, GES is doing good in the industry, outperforming 63.20% of the companies in the same industry.
GES has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of all of its debts.
GES has a better Debt to FCF ratio (1.77) than 73.60% of its industry peers.
Even though the debt/equity ratio score it not favorable for GES, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
GES has a better Quick ratio (0.96) than 66.40% of its industry peers.

How We Gauge Growth for NYSE:GES

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:GES scores a 5 out of 10:

The Earnings Per Share has grown by an nice 12.10% over the past year.
Measured over the past years, GES shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.83% on average per year.
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.

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

For an up to date full fundamental analysis you can check the fundamental report of GES

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.