G-III APPAREL GROUP LTD (GIII) Stock Fundamental Analysis
USA - NASDAQ:GIII - US36237H1014 - Common Stock
27.52 USD
+0.22 (+0.81%)
27.52 USD
0 (0%)
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. While GIII has a great health rating, its profitability is only average at the moment. GIII has a bad growth rate and is valued cheaply. This makes GIII very considerable for value investing!
1. Profitability
1.1 Basic Checks
GIII had positive earnings in the past year.
GIII had a positive operating cash flow in the past year.
GIII had positive earnings in 4 of the past 5 years.
Of the past 5 years GIII 4 years had a positive operating cash flow.
1.2 Ratios
GIII has a better Return On Assets (6.77%) than 77.08% of its industry peers.
With a Return On Equity value of 10.67%, GIII perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.69%, GIII is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GIII is below the industry average of 12.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 10.67% | ||
| ROIC | 9.69% |
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
GIII's Profit Margin of 5.84% is fine compared to the rest of the industry. GIII outperforms 77.08% of its industry peers.
GIII's Profit Margin has improved in the last couple of years.
The Operating Margin of GIII (8.68%) is better than 72.92% of its industry peers.
GIII's Operating Margin has improved in the last couple of years.
GIII has a Gross Margin of 40.37%. This is in the lower half of the industry: GIII underperforms 68.75% of its industry peers.
GIII's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.68% | ||
| PM (TTM) | 5.84% | ||
| GM | 40.37% |
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 below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GIII has been reduced compared to 1 year ago.
The number of shares outstanding for GIII has been reduced compared to 5 years ago.
GIII has a better debt/assets ratio than last year.
2.2 Solvency
GIII has an Altman-Z score of 3.27. This indicates that GIII is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.27, GIII is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
GIII has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.04, GIII belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that GIII is not too dependend on debt financing.
The Debt to Equity ratio of GIII (0.00) is better than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 3.27 |
ROIC/WACC0.91
WACC10.7%
2.3 Liquidity
A Current Ratio of 2.21 indicates that GIII has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.21, GIII is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.26 indicates that GIII should not have too much problems paying its short term obligations.
GIII has a better Quick ratio (1.26) than 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
GIII shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.87%.
Measured over the past 5 years, GIII shows a small growth in Earnings Per Share. The EPS has been growing by 6.92% on average per year.
GIII shows a small growth in Revenue. In the last year, the Revenue has grown by 1.19%.
GIII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.13% yearly.
EPS 1Y (TTM)2.87%
EPS 3Y3.49%
EPS 5Y6.92%
EPS Q2Q%-51.92%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y4.76%
Revenue growth 5Y0.13%
Sales Q2Q%-4.88%
3.2 Future
GIII is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.72% yearly.
Based on estimates for the next years, GIII will show a decrease in Revenue. The Revenue will decrease by -1.04% on average per year.
EPS Next Y-39.88%
EPS Next 2Y-19.85%
EPS Next 3Y-9.72%
EPS Next 5YN/A
Revenue Next Year-4.17%
Revenue Next 2Y-3.34%
Revenue Next 3Y-4.17%
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
The Price/Earnings ratio is 6.40, which indicates a rather cheap valuation of GIII.
91.67% of the companies in the same industry are more expensive than GIII, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.40, GIII is valued rather cheaply.
GIII is valuated reasonably with a Price/Forward Earnings ratio of 9.52.
GIII's Price/Forward Earnings ratio is rather cheap when compared to the industry. GIII is cheaper than 89.58% of the companies in the same industry.
GIII's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.4 | ||
| Fwd PE | 9.52 |
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 97.92% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GIII is valued cheaply inside the industry as 97.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.28 | ||
| EV/EBITDA | 2.9 |
4.3 Compensation for Growth
GIII has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as GIII's earnings are expected to decrease with -9.72% in the coming years.
PEG (NY)N/A
PEG (5Y)0.92
EPS Next 2Y-19.85%
EPS Next 3Y-9.72%
5. Dividend
5.1 Amount
GIII does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.52
+0.22 (+0.81%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners106.16%
Inst Owner Change0.02%
Ins Owners14.59%
Ins Owner Change1.93%
Market Cap1.16B
Analysts48.89
Price Target28.05 (1.93%)
Short Float %17.6%
Short Ratio10.59
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)108.81%
Min EPS beat(2)49.02%
Max EPS beat(2)168.6%
EPS beat(4)4
Avg EPS beat(4)64.57%
Min EPS beat(4)12%
Max EPS beat(4)168.6%
EPS beat(8)8
Avg EPS beat(8)114.27%
EPS beat(12)10
Avg EPS beat(12)339.59%
EPS beat(16)13
Avg EPS beat(16)259.35%
Revenue beat(2)1
Avg Revenue beat(2)1.91%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)5.24%
Revenue beat(4)2
Avg Revenue beat(4)0.69%
Min Revenue beat(4)-2.97%
Max Revenue beat(4)5.24%
Revenue beat(8)2
Avg Revenue beat(8)-2.37%
Revenue beat(12)5
Avg Revenue beat(12)0.38%
Revenue beat(16)7
Avg Revenue beat(16)0.93%
PT rev (1m)8.91%
PT rev (3m)8.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.71%
EPS NY rev (1m)-10.11%
EPS NY rev (3m)-10.11%
Revenue NQ rev (1m)-2.18%
Revenue NQ rev (3m)-8.11%
Revenue NY rev (1m)-1.03%
Revenue NY rev (3m)-3.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.4 | ||
| Fwd PE | 9.52 | ||
| P/S | 0.37 | ||
| P/FCF | 3.28 | ||
| P/OCF | 2.98 | ||
| P/B | 0.68 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 2.9 |
EPS(TTM)4.3
EY15.63%
EPS(NY)2.89
Fwd EY10.5%
FCF(TTM)8.38
FCFY30.45%
OCF(TTM)9.25
OCFY33.6%
SpS73.97
BVpS40.47
TBVpS24.72
PEG (NY)N/A
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 10.67% | ||
| ROCE | 13.43% | ||
| ROIC | 9.69% | ||
| ROICexc | 11.39% | ||
| ROICexgc | 18.58% | ||
| OM | 8.68% | ||
| PM (TTM) | 5.84% | ||
| GM | 40.37% | ||
| FCFM | 11.33% |
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-Score6
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 134.82% | ||
| Cap/Sales | 1.17% | ||
| Interest Coverage | 12.52 | ||
| Cash Conversion | 130.9% | ||
| Profit Quality | 194.12% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 3.27 |
F-Score6
WACC10.7%
ROIC/WACC0.91
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)2.87%
EPS 3Y3.49%
EPS 5Y6.92%
EPS Q2Q%-51.92%
EPS Next Y-39.88%
EPS Next 2Y-19.85%
EPS Next 3Y-9.72%
EPS Next 5YN/A
Revenue 1Y (TTM)1.19%
Revenue growth 3Y4.76%
Revenue growth 5Y0.13%
Sales Q2Q%-4.88%
Revenue Next Year-4.17%
Revenue Next 2Y-3.34%
Revenue Next 3Y-4.17%
Revenue Next 5Y-1.04%
EBIT growth 1Y-9.13%
EBIT growth 3Y-1.22%
EBIT growth 5Y4.04%
EBIT Next Year-30.59%
EBIT Next 3Y-9.34%
EBIT Next 5YN/A
FCF growth 1Y82.65%
FCF growth 3Y21.23%
FCF growth 5Y9.96%
OCF growth 1Y79.27%
OCF growth 3Y19.42%
OCF growth 5Y8.65%