GENESCO INC (GCO) Stock Fundamental Analysis
NYSE:GCO - New York Stock Exchange, Inc. - US3715321028 - Common Stock - Currency: USD
Overall GCO gets a fundamental rating of 5 out of 10. We evaluated GCO against 121 industry peers in the Specialty Retail industry. While GCO seems to be doing ok healthwise, there are quite some concerns on its profitability. GCO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
GCO had positive earnings in the past year.
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.
GCO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of GCO (-1.41%) is worse than 62.81% of its industry peers.
GCO has a Return On Equity of -3.45%. This is comparable to the rest of the industry: GCO outperforms 45.45% of its industry peers.
GCO's Return On Invested Capital of 1.42% is in line compared to the rest of the industry. GCO outperforms 42.98% of its industry peers.
GCO had an Average Return On Invested Capital over the past 3 years of 3.20%. This is significantly below the industry average of 12.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.41% | ||
| ROE | -3.45% | ||
| ROIC | 1.42% |
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
Looking at the Operating Margin, with a value of 0.74%, GCO is doing worse than 61.16% of the companies in the same industry.
In the last couple of years the Operating Margin of GCO has declined.
With a decent Gross Margin value of 47.17%, GCO is doing good in the industry, outperforming 72.73% of the companies in the same industry.
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 | 0.74% | ||
| PM (TTM) | N/A | ||
| GM | 47.17% |
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
GCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
GCO has an Altman-Z score of 2.45. 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.
With a Altman-Z score value of 2.45, GCO perfoms like the industry average, outperforming 52.89% of the companies in the same industry.
GCO 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 | 2.45 |
ROIC/WACC0.13
WACC10.9%
2.3 Liquidity
A Current Ratio of 1.60 indicates that GCO should not have too much problems paying its short term obligations.
GCO's Current ratio of 1.60 is fine compared to the rest of the industry. GCO outperforms 66.12% of its industry peers.
A Quick Ratio of 0.48 indicates that GCO may have some problems paying its short term obligations.
GCO's Quick ratio of 0.48 is in line compared to the rest of the industry. GCO outperforms 43.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.56% over the past year.
GCO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -28.12% yearly.
GCO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.02%.
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)30.56%
EPS 3Y-50.35%
EPS 5Y-28.12%
EPS Q2Q%25.87%
Revenue 1Y (TTM)0.02%
Revenue growth 3Y-1.35%
Revenue growth 5Y1.14%
Sales Q2Q%0.95%
3.2 Future
The Earnings Per Share is expected to grow by 40.84% on average over the next years. This is a very strong growth
GCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.50% yearly.
EPS Next Y63.86%
EPS Next 2Y47.32%
EPS Next 3Y40.84%
EPS Next 5YN/A
Revenue Next Year-1.01%
Revenue Next 2Y0.29%
Revenue Next 3Y1.5%
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.
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
Based on the Price/Earnings ratio of 22.20, the valuation of GCO can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GCO indicates a somewhat cheap valuation: GCO is cheaper than 61.98% of the companies listed in the same industry.
GCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.55 indicates a correct valuation of GCO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GCO indicates a somewhat cheap valuation: GCO is cheaper than 69.42% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. GCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 13.55 |
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 95.04% of the companies listed in the same industry.
94.21% 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 | 4.81 | ||
| EV/EBITDA | 2.9 |
4.3 Compensation for Growth
GCO's 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 40.84% in the coming years.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y47.32%
EPS Next 3Y40.84%
5. Dividend
5.1 Amount
No dividends for GCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.87
-0.99 (-4.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.14%
Inst Owner Change6.2%
Ins Owners7.19%
Ins Owner Change5.85%
Market Cap224.98M
Analysts46.67
Price Target27.54 (31.96%)
Short Float %12.59%
Short Ratio3.23
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)30.45%
Min EPS beat(2)-2.34%
Max EPS beat(2)63.23%
EPS beat(4)3
Avg EPS beat(4)27.26%
Min EPS beat(4)-2.34%
Max EPS beat(4)63.23%
EPS beat(8)4
Avg EPS beat(8)6.19%
EPS beat(12)8
Avg EPS beat(12)62.09%
EPS beat(16)12
Avg EPS beat(16)279.48%
Revenue beat(2)1
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-5.9%
Max Revenue beat(2)1.64%
Revenue beat(4)3
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-5.9%
Max Revenue beat(4)1.66%
Revenue beat(8)6
Avg Revenue beat(8)0.54%
Revenue beat(12)7
Avg Revenue beat(12)0.11%
Revenue beat(16)10
Avg Revenue beat(16)1.74%
PT rev (1m)0%
PT rev (3m)-32.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-46.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-34.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 13.55 | ||
| P/S | 0.1 | ||
| P/FCF | 4.81 | ||
| P/OCF | 2.56 | ||
| P/B | 0.41 | ||
| P/tB | 0.44 | ||
| EV/EBITDA | 2.9 |
EPS(TTM)0.94
EY4.5%
EPS(NY)1.54
Fwd EY7.38%
FCF(TTM)4.34
FCFY20.78%
OCF(TTM)8.15
OCFY39.06%
SpS215.68
BVpS50.74
TBVpS47.5
PEG (NY)0.35
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.41% | ||
| ROE | -3.45% | ||
| ROCE | 1.8% | ||
| ROIC | 1.42% | ||
| ROICexc | 1.47% | ||
| ROICexgc | 1.53% | ||
| OM | 0.74% | ||
| PM (TTM) | N/A | ||
| GM | 47.17% | ||
| FCFM | 2.01% |
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-Score5
Asset Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 78.4% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 3.83 | ||
| Cash Conversion | 126.23% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 2.45 |
F-Score5
WACC10.9%
ROIC/WACC0.13
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)30.56%
EPS 3Y-50.35%
EPS 5Y-28.12%
EPS Q2Q%25.87%
EPS Next Y63.86%
EPS Next 2Y47.32%
EPS Next 3Y40.84%
EPS Next 5YN/A
Revenue 1Y (TTM)0.02%
Revenue growth 3Y-1.35%
Revenue growth 5Y1.14%
Sales Q2Q%0.95%
Revenue Next Year-1.01%
Revenue Next 2Y0.29%
Revenue Next 3Y1.5%
Revenue Next 5YN/A
EBIT growth 1Y1.73%
EBIT growth 3Y-52.25%
EBIT growth 5Y-29.24%
EBIT Next Year326.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y35.55%
FCF growth 3Y-36.89%
FCF growth 5Y-11.76%
OCF growth 1Y-7.29%
OCF growth 3Y-28.45%
OCF growth 5Y-5.59%