G-III APPAREL GROUP LTD (GIII) Stock Fundamental Analysis
NASDAQ:GIII - Nasdaq - US36237H1014 - Common Stock - Currency: USD
Taking everything into account, GIII scores 6 out of 10 in our fundamental rating. GIII was compared to 49 industry peers in the Textiles, Apparel & Luxury Goods industry. GIII has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GIII has a bad growth rate and is valued cheaply. These ratings would make GIII suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year GIII was profitable.
GIII had a positive operating cash flow in the past year.
Of the past 5 years GIII 4 years were profitable.
Of the past 5 years GIII 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.09%, GIII is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
With a decent Return On Equity value of 11.61%, GIII is doing good in the industry, outperforming 60.42% of the companies in the same industry.
GIII's Return On Invested Capital of 10.78% is fine compared to the rest of the industry. GIII outperforms 70.83% of its industry peers.
GIII had an Average Return On Invested Capital over the past 3 years of 9.69%. This is in line with the industry average of 11.45%.
The last Return On Invested Capital (10.78%) for GIII is above the 3 year average (9.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.09% | ||
| ROE | 11.61% | ||
| ROIC | 10.78% |
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 has a better Profit Margin (6.20%) than 66.67% of its industry peers.
GIII's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 9.39%, GIII is doing good in the industry, outperforming 64.58% of the companies in the same industry.
GIII's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 40.77%, GIII is doing worse than 72.92% of the companies in the same industry.
GIII's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.39% | ||
| PM (TTM) | 6.2% | ||
| GM | 40.77% |
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.
The number of shares outstanding for GIII has been reduced compared to 1 year ago.
Compared to 5 years ago, GIII has less shares outstanding
GIII has a better debt/assets ratio than last year.
2.2 Solvency
GIII has an Altman-Z score of 3.73. This indicates that GIII is financially healthy and has little risk of bankruptcy at the moment.
GIII's Altman-Z score of 3.73 is fine compared to the rest of the industry. GIII outperforms 66.67% of its industry peers.
The Debt to FCF ratio of GIII is 0.06, which is an excellent value as it means it would take GIII, only 0.06 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.06, GIII belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that GIII is not too dependend on debt financing.
GIII has a better Debt to Equity ratio (0.00) than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 3.73 |
ROIC/WACC1
WACC10.75%
2.3 Liquidity
A Current Ratio of 2.89 indicates that GIII has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.89, GIII is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
GIII has a Quick Ratio of 1.83. This is a normal value and indicates that GIII is financially healthy and should not expect problems in meeting its short term obligations.
GIII has a Quick ratio of 1.83. This is amongst the best in the industry. GIII outperforms 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.56% over the past year.
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.
The Revenue has been growing slightly by 1.72% in the past year.
GIII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.13% yearly.
EPS 1Y (TTM)12.56%
EPS 3Y3.49%
EPS 5Y6.92%
EPS Q2Q%58.33%
Revenue 1Y (TTM)1.72%
Revenue growth 3Y4.76%
Revenue growth 5Y0.13%
Sales Q2Q%-4.29%
3.2 Future
GIII is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.73% yearly.
GIII is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.04% yearly.
EPS Next Y-33.12%
EPS Next 2Y-16.81%
EPS Next 3Y-9.73%
EPS Next 5YN/A
Revenue Next Year-0.65%
Revenue Next 2Y-1.4%
Revenue Next 3Y-3.27%
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.
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
A Price/Earnings ratio of 5.09 indicates a rather cheap valuation of GIII.
Based on the Price/Earnings ratio, GIII is valued cheaper than 97.92% 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 27.45.
The Price/Forward Earnings ratio is 7.46, which indicates a rather cheap valuation of GIII.
GIII's Price/Forward Earnings ratio is rather cheap when compared to the industry. GIII is cheaper than 91.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, GIII is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.09 | ||
| Fwd PE | 7.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIII is valued cheaper than 97.92% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GIII indicates a rather cheap valuation: GIII is cheaper than 97.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.07 | ||
| EV/EBITDA | 2.39 |
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 -9.73% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.73
EPS Next 2Y-16.81%
EPS Next 3Y-9.73%
5. Dividend
5.1 Amount
GIII does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.24
-0.11 (-0.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners101.93%
Inst Owner Change-0.87%
Ins Owners14.03%
Ins Owner Change8.13%
Market Cap1.01B
Analysts48.89
Price Target25.76 (10.84%)
Short Float %15.36%
Short Ratio7.95
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)38.84%
Min EPS beat(2)28.66%
Max EPS beat(2)49.02%
EPS beat(4)4
Avg EPS beat(4)44.21%
Min EPS beat(4)12%
Max EPS beat(4)87.15%
EPS beat(8)8
Avg EPS beat(8)463.66%
EPS beat(12)9
Avg EPS beat(12)324.13%
EPS beat(16)13
Avg EPS beat(16)268.7%
Revenue beat(2)1
Avg Revenue beat(2)0.25%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)1.92%
Revenue beat(4)1
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-2.97%
Max Revenue beat(4)1.92%
Revenue beat(8)2
Avg Revenue beat(8)-1.87%
Revenue beat(12)5
Avg Revenue beat(12)-0.04%
Revenue beat(16)7
Avg Revenue beat(16)0.66%
PT rev (1m)-14.41%
PT rev (3m)-20.47%
EPS NQ rev (1m)-86.58%
EPS NQ rev (3m)-87.82%
EPS NY rev (1m)-23.92%
EPS NY rev (3m)-28.5%
Revenue NQ rev (1m)-8.37%
Revenue NQ rev (3m)-13.61%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)-3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.09 | ||
| Fwd PE | 7.46 | ||
| P/S | 0.32 | ||
| P/FCF | 3.07 | ||
| P/OCF | 2.76 | ||
| P/B | 0.6 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 2.39 |
EPS(TTM)4.57
EY19.66%
EPS(NY)3.11
Fwd EY13.4%
FCF(TTM)7.57
FCFY32.59%
OCF(TTM)8.42
OCFY36.25%
SpS72.87
BVpS38.9
TBVpS24
PEG (NY)N/A
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.09% | ||
| ROE | 11.61% | ||
| ROCE | 14.94% | ||
| ROIC | 10.78% | ||
| ROICexc | 12.39% | ||
| ROICexgc | 19.8% | ||
| OM | 9.39% | ||
| PM (TTM) | 6.2% | ||
| GM | 40.77% | ||
| FCFM | 10.39% |
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 Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.06 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 146.03% | ||
| Cap/Sales | 1.17% | ||
| Interest Coverage | 17.99 | ||
| Cash Conversion | 113.44% | ||
| Profit Quality | 167.67% | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 3.73 |
F-Score8
WACC10.75%
ROIC/WACC1
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)12.56%
EPS 3Y3.49%
EPS 5Y6.92%
EPS Q2Q%58.33%
EPS Next Y-33.12%
EPS Next 2Y-16.81%
EPS Next 3Y-9.73%
EPS Next 5YN/A
Revenue 1Y (TTM)1.72%
Revenue growth 3Y4.76%
Revenue growth 5Y0.13%
Sales Q2Q%-4.29%
Revenue Next Year-0.65%
Revenue Next 2Y-1.4%
Revenue Next 3Y-3.27%
Revenue Next 5Y-1.04%
EBIT growth 1Y2.74%
EBIT growth 3Y-1.22%
EBIT growth 5Y4.04%
EBIT Next Year2.26%
EBIT Next 3Y-6.01%
EBIT Next 5YN/A
FCF growth 1Y413.85%
FCF growth 3Y21.23%
FCF growth 5Y9.96%
OCF growth 1Y324.08%
OCF growth 3Y19.42%
OCF growth 5Y8.65%