GENESCO INC (GCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GCO - US3715321028 - Common Stock
25.55 USD
+2.24 (+9.61%)
25.55 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to GCO. GCO was compared to 123 industry peers in the Specialty Retail industry. While GCO seems to be doing ok healthwise, there are quite some concerns on its profitability. GCO may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year GCO was profitable.
In the past year GCO had a positive cash flow from operations.
In multiple years GCO reported negative net income over the last 5 years.
Of the past 5 years GCO 4 years had a positive operating cash flow.
1.2 Ratios
GCO has a Return On Assets of -1.71%. This is in the lower half of the industry: GCO underperforms 60.98% of its industry peers.
Looking at the Return On Equity, with a value of -4.80%, GCO is in line with its industry, outperforming 46.34% of the companies in the same industry.
GCO's Return On Invested Capital of 1.24% is in line compared to the rest of the industry. GCO outperforms 41.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GCO is significantly below the industry average of 12.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.71% | ||
| ROE | -4.8% | ||
| ROIC | 1.24% |
ROA(3y)0.75%
ROA(5y)1.21%
ROE(3y)1.82%
ROE(5y)2.91%
ROIC(3y)3.2%
ROIC(5y)N/A
1.3 Margins
GCO has a Operating Margin of 0.67%. This is comparable to the rest of the industry: GCO outperforms 41.46% of its industry peers.
In the last couple of years the Operating Margin of GCO has declined.
GCO has a better Gross Margin (46.82%) than 71.54% of its industry peers.
In the last couple of years the Gross Margin of GCO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.67% | ||
| PM (TTM) | N/A | ||
| GM | 46.82% |
OM growth 3Y-51.59%
OM growth 5Y-30.03%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.1%
GM growth 5Y-0.51%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GCO is destroying value.
Compared to 1 year ago, GCO has less shares outstanding
GCO has less shares outstanding than it did 5 years ago.
There is no outstanding debt for GCO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 2.27 indicates that GCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
GCO has a Altman-Z score (2.27) which is comparable to the rest of the industry.
GCO has a debt to FCF ratio of 3.83. This is a good value and a sign of high solvency as GCO would need 3.83 years to pay back of all of its debts.
The Debt to FCF ratio of GCO (3.83) is better than 70.73% of its industry peers.
GCO has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
GCO has a Debt to Equity ratio of 0.11. This is in the better half of the industry: GCO outperforms 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.12
WACC10.46%
2.3 Liquidity
A Current Ratio of 1.56 indicates that GCO should not have too much problems paying its short term obligations.
The Current ratio of GCO (1.56) is better than 62.60% of its industry peers.
A Quick Ratio of 0.35 indicates that GCO may have some problems paying its short term obligations.
GCO has a worse Quick ratio (0.35) than 67.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 218.52% over the past year.
The earnings per share for GCO have been decreasing by -28.12% on average. This is quite bad
The Revenue has been growing slightly by 2.76% in the past year.
Measured over the past years, GCO shows a small growth in Revenue. The Revenue has been growing by 1.14% on average per year.
EPS 1Y (TTM)218.52%
EPS 3Y-50.35%
EPS 5Y-28.12%
EPS Q2Q%29.51%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y-1.35%
Revenue growth 5Y1.14%
Sales Q2Q%3.34%
3.2 Future
The Earnings Per Share is expected to grow by 46.56% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.57% on average over the next years.
EPS Next Y69.05%
EPS Next 2Y54.33%
EPS Next 3Y46.56%
EPS Next 5YN/A
Revenue Next Year1.84%
Revenue Next 2Y1.99%
Revenue Next 3Y2.57%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.71, the valuation of GCO can be described as expensive.
GCO's Price/Earnings ratio is a bit cheaper when compared to the industry. GCO is cheaper than 65.04% of the companies in the same industry.
GCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
GCO is valuated reasonably with a Price/Forward Earnings ratio of 11.41.
GCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. GCO is cheaper than 84.55% of the companies in the same industry.
GCO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.71 | ||
| Fwd PE | 11.41 |
4.2 Price Multiples
91.06% of the companies in the same industry are more expensive than GCO, based on the Enterprise Value to EBITDA ratio.
80.49% of the companies in the same industry are more expensive than GCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.91 | ||
| EV/EBITDA | 4.07 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GCO's earnings are expected to grow with 46.56% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y54.33%
EPS Next 3Y46.56%
5. Dividend
5.1 Amount
No dividends for GCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
25.55
+2.24 (+9.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.63%
Inst Owner Change-10.8%
Ins Owners8.05%
Ins Owner Change1.41%
Market Cap275.94M
Revenue(TTM)2.38B
Net Income(TTM)-24.32M
Analysts74.29
Price TargetN/A
Short Float %7.78%
Short Ratio5.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.82%
Min EPS beat(2)0.18%
Max EPS beat(2)9.46%
EPS beat(4)3
Avg EPS beat(4)17.63%
Min EPS beat(4)-2.34%
Max EPS beat(4)63.23%
EPS beat(8)5
Avg EPS beat(8)8.84%
EPS beat(12)8
Avg EPS beat(12)5.28%
EPS beat(16)12
Avg EPS beat(16)54.19%
Revenue beat(2)2
Avg Revenue beat(2)1.43%
Min Revenue beat(2)1.32%
Max Revenue beat(2)1.54%
Revenue beat(4)3
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-5.9%
Max Revenue beat(4)1.64%
Revenue beat(8)6
Avg Revenue beat(8)0.36%
Revenue beat(12)9
Avg Revenue beat(12)0.59%
Revenue beat(16)10
Avg Revenue beat(16)0.42%
PT rev (1m)-7.14%
PT rev (3m)-7.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.04%
EPS NY rev (1m)0%
EPS NY rev (3m)3.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.71 | ||
| Fwd PE | 11.41 | ||
| P/S | 0.12 | ||
| P/FCF | 14.91 | ||
| P/OCF | 3.48 | ||
| P/B | 0.54 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | 4.07 |
EPS(TTM)0.86
EY3.37%
EPS(NY)2.24
Fwd EY8.76%
FCF(TTM)1.71
FCFY6.71%
OCF(TTM)7.34
OCFY28.71%
SpS218.72
BVpS46.89
TBVpS43.48
PEG (NY)0.43
PEG (5Y)N/A
Graham Number30.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.71% | ||
| ROE | -4.8% | ||
| ROCE | 1.57% | ||
| ROIC | 1.24% | ||
| ROICexc | 1.29% | ||
| ROICexgc | 1.34% | ||
| OM | 0.67% | ||
| PM (TTM) | N/A | ||
| GM | 46.82% | ||
| FCFM | 0.78% |
ROA(3y)0.75%
ROA(5y)1.21%
ROE(3y)1.82%
ROE(5y)2.91%
ROIC(3y)3.2%
ROIC(5y)N/A
ROICexc(3y)3.34%
ROICexc(5y)N/A
ROICexgc(3y)3.53%
ROICexgc(5y)N/A
ROCE(3y)4.05%
ROCE(5y)N/A
ROICexgc growth 3Y-55.02%
ROICexgc growth 5Y-26.41%
ROICexc growth 3Y-54.26%
ROICexc growth 5Y-24.94%
OM growth 3Y-51.59%
OM growth 5Y-30.03%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.1%
GM growth 5Y-0.51%
F-Score5
Asset Turnover1.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 3.83 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 113.84% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 3.17 | ||
| Cash Conversion | 114.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 2.27 |
F-Score5
WACC10.46%
ROIC/WACC0.12
Cap/Depr(3y)113.44%
Cap/Depr(5y)103.5%
Cap/Sales(3y)2.29%
Cap/Sales(5y)2.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)218.52%
EPS 3Y-50.35%
EPS 5Y-28.12%
EPS Q2Q%29.51%
EPS Next Y69.05%
EPS Next 2Y54.33%
EPS Next 3Y46.56%
EPS Next 5YN/A
Revenue 1Y (TTM)2.76%
Revenue growth 3Y-1.35%
Revenue growth 5Y1.14%
Sales Q2Q%3.34%
Revenue Next Year1.84%
Revenue Next 2Y1.99%
Revenue Next 3Y2.57%
Revenue Next 5YN/A
EBIT growth 1Y81.88%
EBIT growth 3Y-52.25%
EBIT growth 5Y-29.24%
EBIT Next Year337.04%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y157.85%
FCF growth 3Y-36.89%
FCF growth 5Y-11.76%
OCF growth 1Y131.65%
OCF growth 3Y-28.45%
OCF growth 5Y-5.59%
GENESCO INC / GCO FAQ
What is the fundamental rating for GCO stock?
ChartMill assigns a fundamental rating of 4 / 10 to GCO.
What is the valuation status for GCO stock?
ChartMill assigns a valuation rating of 7 / 10 to GENESCO INC (GCO). This can be considered as Undervalued.
How profitable is GENESCO INC (GCO) stock?
GENESCO INC (GCO) has a profitability rating of 3 / 10.
Can you provide the financial health for GCO stock?
The financial health rating of GENESCO INC (GCO) is 5 / 10.
How sustainable is the dividend of GENESCO INC (GCO) stock?
The dividend rating of GENESCO INC (GCO) is 0 / 10 and the dividend payout ratio is 0%.