G-III APPAREL GROUP LTD (GIII) Stock Fundamental Analysis
NASDAQ:GIII - Nasdaq - US36237H1014 - Common Stock - Currency: USD
Overall GIII gets a fundamental rating of 6 out of 10. We evaluated GIII against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. While GIII has a great health rating, its profitability is only average at the moment. GIII is cheap, but on the other hand it scores bad on growth. These ratings would make GIII suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year GIII was profitable.
In the past year GIII had a positive cash flow from operations.
GIII had positive earnings in 4 of the past 5 years.
GIII had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of GIII (7.79%) is better than 74.00% of its industry peers.
The Return On Equity of GIII (11.53%) is comparable to the rest of the industry.
GIII has a better Return On Invested Capital (11.02%) than 68.00% of its industry peers.
GIII had an Average Return On Invested Capital over the past 3 years of 9.69%. This is below the industry average of 13.60%.
The last Return On Invested Capital (11.02%) for GIII is above the 3 year average (9.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 11.53% | ||
| ROIC | 11.02% |
ROA(3y)3.15%
ROA(5y)3.55%
ROE(3y)4.43%
ROE(5y)5.65%
ROIC(3y)9.69%
ROIC(5y)8.57%
1.3 Margins
The Profit Margin of GIII (6.09%) is better than 64.00% of its industry peers.
GIII's Profit Margin has improved in the last couple of years.
GIII has a Operating Margin of 9.47%. This is in the better half of the industry: GIII outperforms 66.00% of its industry peers.
GIII's Operating Margin has improved in the last couple of years.
The Gross Margin of GIII (40.82%) is worse than 70.00% of its industry peers.
GIII's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.47% | ||
| PM (TTM) | 6.09% | ||
| GM | 40.82% |
OM growth 3Y-5.71%
OM growth 5Y3.91%
PM growth 3Y-5.67%
PM growth 5Y5.99%
GM growth 3Y4.55%
GM growth 5Y2.91%
2. Health
2.1 Basic Checks
GIII has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, GIII has less shares outstanding
GIII has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GIII has been reduced compared to a year ago.
2.2 Solvency
GIII has an Altman-Z score of 3.68. This indicates that GIII is financially healthy and has little risk of bankruptcy at the moment.
GIII has a Altman-Z score of 3.68. This is in the better half of the industry: GIII outperforms 72.00% of its industry peers.
The Debt to FCF ratio of GIII is 0.02, which is an excellent value as it means it would take GIII, only 0.02 years of fcf income to pay off all of its debts.
GIII's Debt to FCF ratio of 0.02 is amongst the best of the industry. GIII outperforms 90.00% of its industry peers.
GIII has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
GIII's Debt to Equity ratio of 0.00 is amongst the best of the industry. GIII outperforms 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 3.68 |
ROIC/WACC1.06
WACC10.43%
2.3 Liquidity
GIII has a Current Ratio of 2.62. This indicates that GIII is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.62, GIII is doing good in the industry, outperforming 70.00% of the companies in the same industry.
GIII has a Quick Ratio of 1.68. This is a normal value and indicates that GIII is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.68, GIII belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.57% over the past year.
The Earnings Per Share has been growing slightly by 6.92% on average over the past years.
GIII shows a small growth in Revenue. In the last year, the Revenue has grown by 2.66%.
GIII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.13% yearly.
EPS 1Y (TTM)10.57%
EPS 3Y3.49%
EPS 5Y6.92%
EPS Q2Q%67.11%
Revenue 1Y (TTM)2.66%
Revenue growth 3Y4.76%
Revenue growth 5Y0.13%
Sales Q2Q%9.77%
3.2 Future
The Earnings Per Share is expected to decrease by -8.68% on average over the next years.
The Revenue is expected to decrease by -1.04% on average over the next years.
EPS Next Y-4.23%
EPS Next 2Y-7.68%
EPS Next 3Y-8.68%
EPS Next 5YN/A
Revenue Next Year-1.12%
Revenue Next 2Y-2.06%
Revenue Next 3Y-4.92%
Revenue Next 5Y-1.04%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.67, the valuation of GIII can be described as very cheap.
Based on the Price/Earnings ratio, GIII is valued cheaper than 94.00% of the companies in the same industry.
GIII's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.92.
Based on the Price/Forward Earnings ratio of 5.92, the valuation of GIII can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GIII indicates a rather cheap valuation: GIII is cheaper than 98.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.65, GIII is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.67 | ||
| Fwd PE | 5.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GIII indicates a rather cheap valuation: GIII is cheaper than 98.00% of the companies listed in the same industry.
GIII's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GIII is cheaper than 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.07 | ||
| EV/EBITDA | 2.87 |
4.3 Compensation for Growth
GIII has a very decent profitability rating, which may justify a higher PE ratio.
GIII's earnings are expected to decrease with -8.68% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y-7.68%
EPS Next 3Y-8.68%
5. Dividend
5.1 Amount
No dividends for GIII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.51
+0.82 (+3.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners102.15%
Inst Owner Change0.28%
Ins Owners13.15%
Ins Owner Change5.61%
Market Cap1.12B
Analysts48.89
Price Target32.39 (26.97%)
Short Float %14.01%
Short Ratio11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.33%
Min EPS beat(2)12%
Max EPS beat(2)28.66%
EPS beat(4)4
Avg EPS beat(4)163.52%
Min EPS beat(4)12%
Max EPS beat(4)526.26%
EPS beat(8)8
Avg EPS beat(8)486.63%
EPS beat(12)9
Avg EPS beat(12)321.9%
EPS beat(16)13
Avg EPS beat(16)281.59%
Revenue beat(2)1
Avg Revenue beat(2)-0.53%
Min Revenue beat(2)-2.97%
Max Revenue beat(2)1.92%
Revenue beat(4)1
Avg Revenue beat(4)-1.68%
Min Revenue beat(4)-3%
Max Revenue beat(4)1.92%
Revenue beat(8)3
Avg Revenue beat(8)-0.87%
Revenue beat(12)6
Avg Revenue beat(12)1.16%
Revenue beat(16)8
Avg Revenue beat(16)1.4%
PT rev (1m)0%
PT rev (3m)-12.77%
EPS NQ rev (1m)1.65%
EPS NQ rev (3m)4.23%
EPS NY rev (1m)2.37%
EPS NY rev (3m)3.35%
Revenue NQ rev (1m)-4.44%
Revenue NQ rev (3m)-6.94%
Revenue NY rev (1m)-3.82%
Revenue NY rev (3m)-3.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.67 | ||
| Fwd PE | 5.92 | ||
| P/S | 0.35 | ||
| P/FCF | 4.07 | ||
| P/OCF | 3.54 | ||
| P/B | 0.67 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 2.87 |
EPS(TTM)4.5
EY17.64%
EPS(NY)4.31
Fwd EY16.89%
FCF(TTM)6.26
FCFY24.56%
OCF(TTM)7.21
OCFY28.27%
SpS72.49
BVpS38.27
TBVpS23.78
PEG (NY)N/A
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 11.53% | ||
| ROCE | 15.27% | ||
| ROIC | 11.02% | ||
| ROICexc | 12.13% | ||
| ROICexgc | 18.81% | ||
| OM | 9.47% | ||
| PM (TTM) | 6.09% | ||
| GM | 40.82% | ||
| FCFM | 8.64% |
ROA(3y)3.15%
ROA(5y)3.55%
ROE(3y)4.43%
ROE(5y)5.65%
ROIC(3y)9.69%
ROIC(5y)8.57%
ROICexc(3y)11.32%
ROICexc(5y)10.23%
ROICexgc(3y)17.88%
ROICexgc(5y)16.73%
ROCE(3y)13.44%
ROCE(5y)11.88%
ROICexcg growth 3Y-5.29%
ROICexcg growth 5Y1.41%
ROICexc growth 3Y-1.7%
ROICexc growth 5Y3.6%
OM growth 3Y-5.71%
OM growth 5Y3.91%
PM growth 3Y-5.67%
PM growth 5Y5.99%
GM growth 3Y4.55%
GM growth 5Y2.91%
F-Score8
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 151.28% | ||
| Cap/Sales | 1.31% | ||
| Interest Coverage | 10.98 | ||
| Cash Conversion | 96.25% | ||
| Profit Quality | 142.01% | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 3.68 |
F-Score8
WACC10.43%
ROIC/WACC1.06
Cap/Depr(3y)106.1%
Cap/Depr(5y)94.77%
Cap/Sales(3y)0.92%
Cap/Sales(5y)0.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.57%
EPS 3Y3.49%
EPS 5Y6.92%
EPS Q2Q%67.11%
EPS Next Y-4.23%
EPS Next 2Y-7.68%
EPS Next 3Y-8.68%
EPS Next 5YN/A
Revenue 1Y (TTM)2.66%
Revenue growth 3Y4.76%
Revenue growth 5Y0.13%
Sales Q2Q%9.77%
Revenue Next Year-1.12%
Revenue Next 2Y-2.06%
Revenue Next 3Y-4.92%
Revenue Next 5Y-1.04%
EBIT growth 1Y1.87%
EBIT growth 3Y-1.22%
EBIT growth 5Y4.04%
EBIT Next Year8.74%
EBIT Next 3Y-4.69%
EBIT Next 5YN/A
FCF growth 1Y-51.17%
FCF growth 3Y21.23%
FCF growth 5Y9.96%
OCF growth 1Y-46.15%
OCF growth 3Y19.42%
OCF growth 5Y8.65%