G-III APPAREL GROUP LTD (GIII) Stock Fundamental Analysis
NASDAQ:GIII - US36237H1014 - Common Stock
26.69 USD
-0.21 (-0.78%)
26.69 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GIII. GIII was compared to 49 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 valued quite cheap, but it does not seem to be growing. These ratings could make GIII a good candidate 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
With an excellent Return On Assets value of 8.09%, GIII belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
GIII has a Return On Equity (11.61%) which is comparable to the rest of the industry.
GIII has a better Return On Invested Capital (10.78%) than 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GIII is below the industry average of 12.18%.
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 Profit Margin of 6.20%. This is in the better half of the industry: GIII outperforms 75.51% of its industry peers.
GIII's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.39%, GIII is in the better half of the industry, outperforming 73.47% of the companies in the same industry.
In the last couple of years the Operating Margin of GIII has grown nicely.
The Gross Margin of GIII (40.77%) is worse than 67.35% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GIII is destroying value.
Compared to 1 year ago, GIII has less shares outstanding
The number of shares outstanding for GIII has been reduced compared to 5 years ago.
Compared to 1 year ago, GIII has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.86 indicates that GIII is not in any danger for bankruptcy at the moment.
The Altman-Z score of GIII (3.86) is better than 71.43% of its industry peers.
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.
GIII has a Debt to FCF ratio of 0.06. This is amongst the best in the industry. GIII outperforms 89.80% 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 has a better Debt to Equity ratio (0.00) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 3.86 |
ROIC/WACC0.99
WACC10.84%
2.3 Liquidity
A Current Ratio of 2.89 indicates that GIII has no problem at all paying its short term obligations.
GIII has a better Current ratio (2.89) than 87.76% 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.
Looking at the Quick ratio, with a value of 1.83, GIII belongs to the top of the industry, outperforming 91.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 1.83 |
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%.
The Earnings Per Share has been growing slightly by 6.92% on average over the past years.
Looking at the last year, GIII shows a small growth in Revenue. The Revenue has grown by 1.19% in the last year.
The Revenue has been growing slightly by 0.13% on average over the past years.
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 -9.70% yearly.
The Revenue is expected to decrease by -1.04% on average over the next years.
EPS Next Y-33.12%
EPS Next 2Y-16.81%
EPS Next 3Y-9.7%
EPS Next 5YN/A
Revenue Next Year-0.65%
Revenue Next 2Y-1.4%
Revenue Next 3Y-3.16%
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 6.21, which indicates a rather cheap valuation of GIII.
91.84% of the companies in the same industry are more expensive than GIII, based on the Price/Earnings ratio.
GIII is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.57, which indicates a very decent valuation of GIII.
Based on the Price/Forward Earnings ratio, GIII is valued cheaply inside the industry as 93.88% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.54. GIII is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.21 | ||
| Fwd PE | 8.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIII is valued cheaper than 97.96% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GIII is valued cheaper than 97.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.53 | ||
| EV/EBITDA | 2.88 |
4.3 Compensation for Growth
The decent profitability rating of GIII may justify a higher PE ratio.
GIII's earnings are expected to decrease with -9.70% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y-16.81%
EPS Next 3Y-9.7%
5. Dividend
5.1 Amount
No dividends for GIII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.69
-0.21 (-0.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners102.41%
Inst Owner Change-2.37%
Ins Owners14.22%
Ins Owner Change8.12%
Market Cap1.16B
Analysts48.89
Price Target25.76 (-3.48%)
Short Float %17.33%
Short Ratio9.93
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)0%
PT rev (3m)-15.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-80.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-23.92%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)-8.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.21 | ||
| Fwd PE | 8.57 | ||
| P/S | 0.37 | ||
| P/FCF | 3.53 | ||
| P/OCF | 3.17 | ||
| P/B | 0.69 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 2.88 |
EPS(TTM)4.3
EY16.11%
EPS(NY)3.11
Fwd EY11.67%
FCF(TTM)7.57
FCFY28.36%
OCF(TTM)8.42
OCFY31.55%
SpS72.84
BVpS38.88
TBVpS23.99
PEG (NY)N/A
PEG (5Y)0.9
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 | 3.86 |
F-Score8
WACC10.84%
ROIC/WACC0.99
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-33.12%
EPS Next 2Y-16.81%
EPS Next 3Y-9.7%
EPS Next 5YN/A
Revenue 1Y (TTM)1.19%
Revenue growth 3Y4.76%
Revenue growth 5Y0.13%
Sales Q2Q%-4.88%
Revenue Next Year-0.65%
Revenue Next 2Y-1.4%
Revenue Next 3Y-3.16%
Revenue Next 5Y-1.04%
EBIT growth 1Y2.74%
EBIT growth 3Y-1.22%
EBIT growth 5Y4.04%
EBIT Next Year-21.91%
EBIT Next 3Y-7.78%
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%