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 48 industry peers in the Textiles, Apparel & Luxury Goods industry. GIII scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
GIII had positive earnings in the past year.
In the past year GIII had a positive cash flow from operations.
Of the past 5 years GIII 4 years were profitable.
GIII had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of GIII (8.09%) is better than 72.92% of its industry peers.
The Return On Equity of GIII (11.61%) is better than 60.42% of its industry peers.
The Return On Invested Capital of GIII (10.78%) is better than 70.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GIII 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
With a decent Profit Margin value of 6.20%, GIII is doing good in the industry, outperforming 66.67% of the companies in the same industry.
GIII's Profit Margin has improved in the last couple of years.
The Operating Margin of GIII (9.39%) is better than 64.58% of its industry peers.
GIII's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 40.77%, GIII is not doing good in the industry: 72.92% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of GIII has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GIII is still 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 3.69. This indicates that GIII is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.69, GIII is doing good in the industry, outperforming 66.67% of the companies in the same industry.
GIII has a debt to FCF ratio of 0.06. This is a very positive value and a sign of high solvency as it would only need 0.06 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.06, GIII belongs to the top 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's Debt to Equity ratio of 0.00 is amongst the best of the industry. GIII outperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 3.69 |
ROIC/WACC1.17
WACC9.22%
2.3 Liquidity
A Current Ratio of 2.89 indicates that GIII has no problem at all paying its short term obligations.
GIII's Current ratio of 2.89 is fine compared to the rest of the industry. GIII outperforms 75.00% of its industry peers.
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.
The Quick ratio of GIII (1.83) is better than 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.
GIII shows a small growth in Revenue. In the last year, the Revenue has grown by 1.72%.
The Revenue has been growing slightly by 0.13% on average over the past years.
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
Based on estimates for the next years, GIII will show a very negative growth in Earnings Per Share. The EPS will decrease by -10.24% on average per year.
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-10.24%
EPS Next 5YN/A
Revenue Next Year-0.65%
Revenue Next 2Y-1.4%
Revenue Next 3Y-1.84%
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 4.82.
Based on the Price/Earnings ratio, GIII is valued cheaply inside the industry as 97.92% of the companies are valued more expensively.
GIII's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.91.
With a Price/Forward Earnings ratio of 7.07, 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 91.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GIII to the average of the S&P500 Index (21.46), we can say GIII is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.82 | ||
| Fwd PE | 7.07 |
4.2 Price Multiples
GIII's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GIII is 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 | 2.91 | ||
| EV/EBITDA | 2.22 |
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 -10.24% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.7
EPS Next 2Y-16.81%
EPS Next 3Y-10.24%
5. Dividend
5.1 Amount
No dividends for GIII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.01
+0.22 (+1.01%)
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 Change8.03%
Market Cap952.81M
Analysts48.89
Price Target25.76 (17.04%)
Short Float %14.55%
Short Ratio8.16
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 | 4.82 | ||
| Fwd PE | 7.07 | ||
| P/S | 0.3 | ||
| P/FCF | 2.91 | ||
| P/OCF | 2.61 | ||
| P/B | 0.57 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 2.22 |
EPS(TTM)4.57
EY20.76%
EPS(NY)3.11
Fwd EY14.15%
FCF(TTM)7.57
FCFY34.41%
OCF(TTM)8.42
OCFY38.28%
SpS72.87
BVpS38.9
TBVpS24
PEG (NY)N/A
PEG (5Y)0.7
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 | 3.69 |
F-Score8
WACC9.22%
ROIC/WACC1.17
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-10.24%
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-1.84%
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-2.33%
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%