G-III APPAREL GROUP LTD (GIII) Stock Fundamental Analysis
NASDAQ:GIII - Nasdaq - US36237H1014 - Common Stock - Currency: USD
GIII gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. GIII is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. GIII is cheap, but on the other hand it scores bad on growth. This makes GIII very considerable for value investing!
1. Profitability
1.1 Basic Checks
GIII had positive earnings in the past year.
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
GIII has a Return On Assets of 7.79%. This is in the better half of the industry: GIII outperforms 72.92% of its industry peers.
With a Return On Equity value of 11.53%, GIII perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
GIII has a better Return On Invested Capital (11.02%) than 68.75% 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 13.51%.
The 3 year average ROIC (9.69%) for GIII is below the current ROIC(11.02%), indicating increased profibility in the last year.
| 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 62.50% 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 64.58% of its industry peers.
GIII's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 40.82%, GIII is doing worse than 75.00% of the companies in the same industry.
In the last couple of years the Gross Margin of GIII has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GIII is creating some value.
GIII has less shares outstanding than it did 1 year ago.
GIII has less shares outstanding than it did 5 years ago.
GIII has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.76 indicates that GIII is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.76, GIII is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
GIII has a debt to FCF ratio of 0.02. This is a very positive value and a sign of high solvency as it would only need 0.02 years to pay back of all of its debts.
GIII has a Debt to FCF ratio of 0.02. This is amongst the best in the industry. GIII outperforms 89.58% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that GIII is not too dependend on debt financing.
GIII's Debt to Equity ratio of 0.00 is amongst the best of the industry. GIII outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 3.76 |
ROIC/WACC1.03
WACC10.66%
2.3 Liquidity
A Current Ratio of 2.62 indicates that GIII has no problem at all paying its short term obligations.
GIII's Current ratio of 2.62 is fine compared to the rest of the industry. GIII outperforms 64.58% of its industry peers.
A Quick Ratio of 1.68 indicates that GIII should not have too much problems paying its short term obligations.
GIII has a better Quick ratio (1.68) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
GIII shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.57%, which is quite good.
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%.
The Revenue has been growing slightly by 0.13% on average over the past years.
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.
GIII is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.04% yearly.
EPS Next Y-12.09%
EPS Next 2Y-9.53%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GIII is valuated cheaply with a Price/Earnings ratio of 6.46.
Compared to the rest of the industry, the Price/Earnings ratio of GIII indicates a rather cheap valuation: GIII is cheaper than 93.75% of the companies listed in the same industry.
GIII is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.34, 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 95.83% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, GIII is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.46 | ||
| Fwd PE | 7.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIII is valued cheaply inside the industry as 97.92% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GIII is valued cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.57 | ||
| EV/EBITDA | 3.21 |
4.3 Compensation for Growth
The decent profitability rating of GIII may justify a higher PE ratio.
A cheap valuation may be justified as GIII's earnings are expected to decrease with -8.68% in the coming years.
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y-9.53%
EPS Next 3Y-8.68%
5. Dividend
5.1 Amount
GIII does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.05
+0.6 (+2.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners102.15%
Inst Owner Change-0.79%
Ins Owners13.15%
Ins Owner Change5.61%
Market Cap1.26B
Analysts48.89
Price Target30.09 (3.58%)
Short Float %13.41%
Short Ratio8.01
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)-7.09%
PT rev (3m)-18.96%
EPS NQ rev (1m)21.62%
EPS NQ rev (3m)20.64%
EPS NY rev (1m)-8.2%
EPS NY rev (3m)-6.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.46 | ||
| Fwd PE | 7.34 | ||
| P/S | 0.4 | ||
| P/FCF | 4.57 | ||
| P/OCF | 3.97 | ||
| P/B | 0.75 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 3.21 |
EPS(TTM)4.5
EY15.49%
EPS(NY)3.96
Fwd EY13.62%
FCF(TTM)6.35
FCFY21.86%
OCF(TTM)7.31
OCFY25.16%
SpS73.48
BVpS38.8
TBVpS24.1
PEG (NY)N/A
PEG (5Y)0.93
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 | 3.76 |
F-Score8
WACC10.66%
ROIC/WACC1.03
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-12.09%
EPS Next 2Y-9.53%
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 Year2.26%
EBIT Next 3Y-5.05%
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%