GENESCO INC (GCO) Stock Fundamental Analysis
NYSE:GCO - New York Stock Exchange, Inc. - US3715321028 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to GCO. GCO was compared to 122 industry peers in the Specialty Retail industry. While GCO seems to be doing ok healthwise, there are quite some concerns on its profitability. GCO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
GCO had positive earnings in the past year.
GCO had a positive operating cash flow in the past year.
In multiple years GCO reported negative net income over the last 5 years.
GCO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
GCO has a Return On Assets of -1.12%. This is comparable to the rest of the industry: GCO outperforms 41.80% of its industry peers.
With a Return On Equity value of -3.02%, GCO perfoms like the industry average, outperforming 49.18% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.53%, GCO is in line with its industry, outperforming 44.26% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GCO is significantly below the industry average of 12.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.12% | ||
| ROE | -3.02% | ||
| ROIC | 1.53% |
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's Operating Margin of 0.89% is in line compared to the rest of the industry. GCO outperforms 42.62% of its industry peers.
In the last couple of years the Operating Margin of GCO has declined.
With a decent Gross Margin value of 47.05%, GCO is doing good in the industry, outperforming 73.77% of the companies in the same industry.
GCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.89% | ||
| PM (TTM) | N/A | ||
| GM | 47.05% |
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.
The number of shares outstanding for GCO has been reduced compared to 1 year ago.
Compared to 5 years ago, GCO has less shares outstanding
GCO 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
GCO has an Altman-Z score of 2.37. This is not the best score and indicates that GCO is in the grey zone with still only limited risk for bankruptcy at the moment.
GCO has a Altman-Z score (2.37) which is in line with its industry peers.
A Debt/Equity ratio of 0.22 indicates that GCO is not too dependend on debt financing.
GCO's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. GCO outperforms 62.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.37 |
ROIC/WACC0.15
WACC10.57%
2.3 Liquidity
GCO has a Current Ratio of 1.91. This is a normal value and indicates that GCO is financially healthy and should not expect problems in meeting its short term obligations.
GCO has a Current ratio of 1.91. This is amongst the best in the industry. GCO outperforms 81.15% of its industry peers.
A Quick Ratio of 0.55 indicates that GCO may have some problems paying its short term obligations.
With a Quick ratio value of 0.55, GCO perfoms like the industry average, outperforming 54.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
GCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 371.43%, which is quite impressive.
GCO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -28.12% yearly.
Looking at the last year, GCO shows a small growth in Revenue. The Revenue has grown by 1.85% in the last year.
GCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.14% yearly.
EPS 1Y (TTM)371.43%
EPS 3Y-50.35%
EPS 5Y-28.12%
EPS Q2Q%2.38%
Revenue 1Y (TTM)1.85%
Revenue growth 3Y-1.35%
Revenue growth 5Y1.14%
Sales Q2Q%3.58%
3.2 Future
Based on estimates for the next years, GCO will show a very strong growth in Earnings Per Share. The EPS will grow by 43.84% on average per year.
The Revenue is expected to grow by 1.92% on average over the next years.
EPS Next Y62.96%
EPS Next 2Y49.26%
EPS Next 3Y43.84%
EPS Next 5YN/A
Revenue Next Year-0.17%
Revenue Next 2Y0.92%
Revenue Next 3Y1.92%
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.
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
GCO is valuated rather expensively with a Price/Earnings ratio of 23.19.
Compared to the rest of the industry, the Price/Earnings ratio of GCO indicates a somewhat cheap valuation: GCO is cheaper than 64.75% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. GCO is around the same levels.
The Price/Forward Earnings ratio is 10.96, which indicates a very decent valuation of GCO.
Based on the Price/Forward Earnings ratio, GCO is valued a bit cheaper than the industry average as 77.87% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, GCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 10.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GCO indicates a rather cheap valuation: GCO is cheaper than 85.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.72 |
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 43.84% in the coming years.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y49.26%
EPS Next 3Y43.84%
5. Dividend
5.1 Amount
No dividends for GCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.96
-0.27 (-1.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners101.72%
Inst Owner Change-0.25%
Ins Owners7.83%
Ins Owner Change5.71%
Market Cap247.51M
Analysts48
Price Target24.99 (8.84%)
Short Float %14.31%
Short Ratio5.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.08%
Min EPS beat(2)-2.34%
Max EPS beat(2)0.18%
EPS beat(4)3
Avg EPS beat(4)21.84%
Min EPS beat(4)-2.34%
Max EPS beat(4)63.23%
EPS beat(8)5
Avg EPS beat(8)11.6%
EPS beat(12)8
Avg EPS beat(12)14.88%
EPS beat(16)12
Avg EPS beat(16)263.93%
Revenue beat(2)1
Avg Revenue beat(2)-2.29%
Min Revenue beat(2)-5.9%
Max Revenue beat(2)1.32%
Revenue beat(4)3
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-5.9%
Max Revenue beat(4)1.64%
Revenue beat(8)6
Avg Revenue beat(8)0.69%
Revenue beat(12)8
Avg Revenue beat(12)0.31%
Revenue beat(16)10
Avg Revenue beat(16)0.65%
PT rev (1m)4.26%
PT rev (3m)-9.26%
EPS NQ rev (1m)-62.07%
EPS NQ rev (3m)-61.72%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 10.96 | ||
| P/S | 0.11 | ||
| P/FCF | N/A | ||
| P/OCF | 12.02 | ||
| P/B | 0.47 | ||
| P/tB | 0.51 | ||
| EV/EBITDA | 4.72 |
EPS(TTM)0.99
EY4.31%
EPS(NY)2.09
Fwd EY9.12%
FCF(TTM)-3.07
FCFYN/A
OCF(TTM)1.91
OCFY8.32%
SpS217.2
BVpS48.44
TBVpS45.03
PEG (NY)0.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.12% | ||
| ROE | -3.02% | ||
| ROCE | 1.94% | ||
| ROIC | 1.53% | ||
| ROICexc | 1.57% | ||
| ROICexgc | 1.62% | ||
| OM | 0.89% | ||
| PM (TTM) | N/A | ||
| GM | 47.05% | ||
| FCFM | N/A |
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
ROICexcg growth 3Y-55.02%
ROICexcg 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-Score4
Asset Turnover1.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 101.96% | ||
| Cap/Sales | 2.29% | ||
| Interest Coverage | 4.68 | ||
| Cash Conversion | 28.03% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 2.37 |
F-Score4
WACC10.57%
ROIC/WACC0.15
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)371.43%
EPS 3Y-50.35%
EPS 5Y-28.12%
EPS Q2Q%2.38%
EPS Next Y62.96%
EPS Next 2Y49.26%
EPS Next 3Y43.84%
EPS Next 5YN/A
Revenue 1Y (TTM)1.85%
Revenue growth 3Y-1.35%
Revenue growth 5Y1.14%
Sales Q2Q%3.58%
Revenue Next Year-0.17%
Revenue Next 2Y0.92%
Revenue Next 3Y1.92%
Revenue Next 5YN/A
EBIT growth 1Y160.08%
EBIT growth 3Y-52.25%
EBIT growth 5Y-29.24%
EBIT Next Year326.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y83.04%
FCF growth 3Y-36.89%
FCF growth 5Y-11.76%
OCF growth 1Y115.46%
OCF growth 3Y-28.45%
OCF growth 5Y-5.59%