CANADA GOOSE HOLDINGS INC (GOOS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:GOOS - CA1350861060 - Common Stock
17.57 CAD
-0.16 (-0.9%)
Taking everything into account, GOOS scores 4 out of 10 in our fundamental rating. GOOS was compared to 5 industry peers in the Textiles, Apparel & Luxury Goods industry. GOOS has a medium profitability rating, but doesn't score so well on its financial health evaluation. GOOS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year GOOS was profitable.
- GOOS had a positive operating cash flow in the past year.
- GOOS had positive earnings in each of the past 5 years.
- In the past 5 years GOOS always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of GOOS (1.64%) is comparable to the rest of the industry.
- GOOS's Return On Equity of 6.23% is in line compared to the rest of the industry. GOOS outperforms 60.00% of its industry peers.
- GOOS has a Return On Invested Capital (6.14%) which is comparable to the rest of the industry.
- GOOS had an Average Return On Invested Capital over the past 3 years of 8.34%. This is in line with the industry average of 9.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.64% | ||
| ROE | 6.23% | ||
| ROIC | 6.14% |
ROA(3y)4.79%
ROA(5y)5.16%
ROE(3y)15.67%
ROE(5y)15.36%
ROIC(3y)8.34%
ROIC(5y)9.05%
1.3 Margins
- GOOS has a Profit Margin (1.92%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of GOOS has declined.
- Looking at the Operating Margin, with a value of 6.91%, GOOS is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- GOOS's Operating Margin has declined in the last couple of years.
- GOOS has a Gross Margin of 70.12%. This is amongst the best in the industry. GOOS outperforms 100.00% of its industry peers.
- GOOS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.91% | ||
| PM (TTM) | 1.92% | ||
| GM | 70.12% |
OM growth 3Y-8.46%
OM growth 5Y-11.15%
PM growth 3Y-6.54%
PM growth 5Y-14.99%
GM growth 3Y1.55%
GM growth 5Y2.46%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GOOS is destroying value.
- The number of shares outstanding for GOOS has been increased compared to 1 year ago.
- The number of shares outstanding for GOOS has been reduced compared to 5 years ago.
- Compared to 1 year ago, GOOS has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.38 indicates that GOOS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.38, GOOS is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- GOOS has a debt to FCF ratio of 3.89. This is a good value and a sign of high solvency as GOOS would need 3.89 years to pay back of all of its debts.
- The Debt to FCF ratio of GOOS (3.89) is better than 80.00% of its industry peers.
- GOOS has a Debt/Equity ratio of 1.66. This is a high value indicating a heavy dependency on external financing.
- GOOS has a worse Debt to Equity ratio (1.66) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.66 | ||
| Debt/FCF | 3.89 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.59
WACC10.38%
2.3 Liquidity
- GOOS has a Current Ratio of 1.89. This is a normal value and indicates that GOOS is financially healthy and should not expect problems in meeting its short term obligations.
- GOOS has a Current ratio of 1.89. This is in the lower half of the industry: GOOS underperforms 60.00% of its industry peers.
- GOOS has a Quick Ratio of 1.89. This is a bad value and indicates that GOOS is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.82, GOOS is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
- GOOS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.66%.
- The Earnings Per Share has been decreasing by -3.58% on average over the past years.
- The Revenue has been growing slightly by 3.71% in the past year.
- GOOS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.07% yearly.
EPS 1Y (TTM)-3.66%
EPS 3Y-0.89%
EPS 5Y-3.58%
EPS Q2Q%-380%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y7.07%
Revenue growth 5Y7.07%
Sales Q2Q%1.79%
3.2 Future
- The Earnings Per Share is expected to grow by 5.95% on average over the next years.
- GOOS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.24% yearly.
EPS Next Y-9.05%
EPS Next 2Y3.4%
EPS Next 3Y5.95%
EPS Next 5YN/A
Revenue Next Year9.06%
Revenue Next 2Y7.48%
Revenue Next 3Y7.24%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- GOOS is valuated rather expensively with a Price/Earnings ratio of 22.24.
- Based on the Price/Earnings ratio, GOOS is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- GOOS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- The Price/Forward Earnings ratio is 14.94, which indicates a correct valuation of GOOS.
- GOOS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GOOS is cheaper than 80.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, GOOS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.24 | ||
| Fwd PE | 14.94 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOOS indicates a somewhat cheap valuation: GOOS is cheaper than 80.00% of the companies listed in the same industry.
- GOOS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GOOS is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.36 | ||
| EV/EBITDA | 10.58 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.4%
EPS Next 3Y5.95%
5. Dividend
5.1 Amount
- GOOS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CANADA GOOSE HOLDINGS INC / GOOS.CA FAQ
What is the ChartMill fundamental rating of CANADA GOOSE HOLDINGS INC (GOOS.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to GOOS.CA.
What is the valuation status for GOOS stock?
ChartMill assigns a valuation rating of 4 / 10 to CANADA GOOSE HOLDINGS INC (GOOS.CA). This can be considered as Fairly Valued.
What is the profitability of GOOS stock?
CANADA GOOSE HOLDINGS INC (GOOS.CA) has a profitability rating of 5 / 10.
What is the valuation of CANADA GOOSE HOLDINGS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CANADA GOOSE HOLDINGS INC (GOOS.CA) is 22.24 and the Price/Book (PB) ratio is 4.02.
How financially healthy is CANADA GOOSE HOLDINGS INC?
The financial health rating of CANADA GOOSE HOLDINGS INC (GOOS.CA) is 3 / 10.