MOVADO GROUP INC (MOV)
US6245801062 - Common Stock
MOV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 industry peers in the Textiles, Apparel & Luxury Goods industry. MOV has an excellent financial health rating, but there are some minor concerns on its profitability. MOV has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
MOV had positive earnings in the past year.
MOV had a positive operating cash flow in the past year.
Of the past 5 years MOV 4 years were profitable.
MOV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.06%, MOV is doing good in the industry, outperforming 68.00% of the companies in the same industry.
MOV has a Return On Equity (9.02%) which is in line with its industry peers.
With a Return On Invested Capital value of 6.60%, MOV perfoms like the industry average, outperforming 58.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MOV is above the industry average of 10.07%.
The last Return On Invested Capital (6.60%) for MOV is well below the 3 year average (12.23%), which needs to be investigated, but indicates that MOV had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.06% | ||
| ROE | 9.02% | ||
| ROIC | 6.6% |
ROA(3y)10.03%
ROA(5y)3.93%
ROE(3y)15.68%
ROE(5y)5.78%
ROIC(3y)12.23%
ROIC(5y)8.97%
1.3 Margins
The Profit Margin of MOV (6.93%) is better than 72.00% of its industry peers.
In the last couple of years the Profit Margin of MOV has declined.
Looking at the Operating Margin, with a value of 8.13%, MOV is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
In the last couple of years the Operating Margin of MOV has declined.
With a decent Gross Margin value of 55.07%, MOV is doing good in the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Gross Margin of MOV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.13% | ||
| PM (TTM) | 6.93% | ||
| GM | 55.07% |
OM growth 3Y15.98%
OM growth 5Y-2.33%
PM growth 3YN/A
PM growth 5Y-5.19%
GM growth 3Y0.93%
GM growth 5Y0.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MOV is creating some value.
MOV has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MOV has been reduced compared to 5 years ago.
There is no outstanding debt for MOV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
MOV has an Altman-Z score of 4.01. This indicates that MOV is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.01, MOV is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
MOV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.01 |
ROIC/WACC0.72
WACC9.14%
2.3 Liquidity
MOV has a Current Ratio of 4.81. This indicates that MOV is financially healthy and has no problem in meeting its short term obligations.
MOV's Current ratio of 4.81 is amongst the best of the industry. MOV outperforms 92.00% of its industry peers.
MOV has a Quick Ratio of 3.50. This indicates that MOV is financially healthy and has no problem in meeting its short term obligations.
MOV has a Quick ratio of 3.50. This is amongst the best in the industry. MOV outperforms 94.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.81 | ||
| Quick Ratio | 3.5 |
3. Growth
3.1 Past
MOV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -49.65%.
MOV shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.42% yearly.
Looking at the last year, MOV shows a very negative growth in Revenue. The Revenue has decreased by -10.55% in the last year.
The Revenue has been decreasing by -0.21% on average over the past years.
EPS 1Y (TTM)-49.65%
EPS 3Y32.77%
EPS 5Y-4.42%
EPS growth Q2Q-46.6%
Revenue 1Y (TTM)-10.55%
Revenue growth 3Y9.92%
Revenue growth 5Y-0.21%
Revenue growth Q2Q-7.56%
3.2 Future
Based on estimates for the next years, MOV will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.36% on average per year.
The Revenue is expected to grow by 4.97% on average over the next years.
EPS Next Y-46.89%
EPS Next 2Y13.36%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.94%
Revenue Next 2Y4.97%
Revenue Next 3YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.45, MOV is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of MOV indicates a somewhat cheap valuation: MOV is cheaper than 76.00% of the companies listed in the same industry.
MOV is valuated cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.44 indicates a rather expensive valuation of MOV.
The rest of the industry has a similar Price/Forward Earnings ratio as MOV.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.41, MOV is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.45 | ||
| Fwd PE | 23.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MOV is valued cheaply inside the industry as 94.00% of the companies are valued more expensively.
MOV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MOV is cheaper than 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.58 | ||
| EV/EBITDA | 4.89 |
4.3 Compensation for Growth
MOV has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MOV's earnings are expected to grow with 13.36% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.36%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MOV has a Yearly Dividend Yield of 5.41%, which is a nice return.
Compared to an average industry Dividend Yield of 2.83, MOV pays a better dividend. On top of this MOV pays more dividend than 96.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, MOV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
5.2 History
The dividend of MOV is nicely growing with an annual growth rate of 35.88%!
MOV has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of MOV decreased in the last 3 years.
Dividend Growth(5Y)35.88%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
MOV pays out 113.96% of its income as dividend. This is not a sustainable payout ratio.
The dividend of MOV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP113.96%
EPS Next 2Y13.36%
EPS Next 3YN/A
MOVADO GROUP INC
NYSE:MOV (5/6/2024, 2:41:59 PM)
26.51
+0.46 (+1.77%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap586.67M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.45 | ||
| Fwd PE | 23.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.06% | ||
| ROE | 9.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.13% | ||
| PM (TTM) | 6.93% | ||
| GM | 55.07% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.81 | ||
| Quick Ratio | 3.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-49.65%
EPS 3Y32.77%
EPS 5Y
EPS growth Q2Q
EPS Next Y-46.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.55%
Revenue growth 3Y9.92%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y