Fossil Stock Analysis, Valuation (NASDAQ:FOSL)

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$14.2 $0.17 (1.18%) FOSL stock closing price Apr 24, 2018 (Closing)
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Fossil
Updated on : Apr 24, 2018
previous close
FOSL 14.2 (0%)
S&P 500 2634.6 (0%)
Closing Price On: Apr 24, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Apparel-Shoe
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-0.5%
Operating Profit
Operating Margin:
-15.2%
Sector Average:
5.5%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Debt/Equity Ratio
Debt:
446.1M
Debt/Equity Ratio:
 0.77
Compared to the industry
Cash Flow
Operating cash flow:
$119.4M
Net Income:
-$79.9M
PROS      CONS
FCF Margin
PS Valuation
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
FOSL PS :
0.2
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-24%
Return on Equity:
-61.5%
Free Cash Flow Margin:
12.1%
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Fossil Stock Analysis

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Take a look at Amigobulls Fossil stock analysis video. This is our analyst opinion covering the buy and sell arguments for FOSL stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Fossil Group Inc Stock Rating 1.9/5

Amigobulls FOSL stock analysis relies on business fundamentals such as Fossil revenue growth, profits and return on equity measures from the latest quarter 2017 Q4 earnings. Fossil valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Fossil stock rating which is indicative of the company's financial performance.

Should you buy FOSL stock?

  • The lower PS ratio 0.2 for FOSL stock versus Retail-Apparel-Shoe industry average of 0.7 is a positive for the company.
  • The company has a healthy free cash flow margin of 12.1%.

Should you sell FOSL stock?

  • Sales declined by -0.5% annually over the last 5 years.
  • Fossil registered a negative operating margin of -15.2% (average) over the Trailing Twelve Months (TTM).
  • Over the last 12 months, Fossil had an average Net loss of -17.2%.
  • Fossil is debt laden and has a high debt/equity ratio of  0.77.
  • Trading at a PE ratio of 142, FOSL stock is overvalued in comparison to industry average multiple of 19.9.
  • Fossil's negative ROIC of -24% indicates operational inefficiency.
  • Fossil has a negative return on equity of -61.5%. This indicates that the firm is inefficient at generating profits.

Comments on this video and Fossil stock

Investors can use Amigobulls Fossil stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Company's fundamentals remain one of the key driver of FOSL stock and helps investors in making good buy and sell decision.

Fossil revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Fossil stock.