Genesco Stock Analysis, Valuation (NYSE:GCO)

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$42.7 $1 (2.29%) GCO stock closing price Apr 19, 2018 (Closing)
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Genesco
Updated on : Apr 19, 2018
previous close
GCO 42.7 (0%)
S&P 500 2693.1 (0%)
Closing Price On: Apr 19, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Apparel-Shoe
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2018-Q4
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
-3.3%
Sector Average:
5.5%
5 Quarter Net Profit
Net Margins
2018-Q4
%
LTM Margin
Debt/Equity Ratio
Debt:
88.4M
Debt/Equity Ratio:
 0.11
Compared to the industry
Cash Flow
Operating cash flow:
$177.1M
Net Income:
$56.1M
PROS      CONS
Low Debt Burden
Cash Flow
FCF Margin
PE Valuation
PS Valuation
Operating Margins
Net Margins
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
GCO PS :
0.3
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-6.6%
Return on Equity:
-12.9%
Free Cash Flow Margin:
16.5%
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Genesco Stock Analysis

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View the Genesco stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for GCO stock is shown in the video.

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.

Genesco Inc. Stock Rating 2.4/5

Amigobulls GCO stock analysis uses latest quarter 2018 Q4 financial data like Genesco revenue growth, profit margins and cash flows. We compare Genesco valuation with its sector peers to gauge relative attractiveness of GCO stock. Genesco stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy GCO stock?

  • With its debt/equity ratio of  0.11, Genesco has a lower debt burden when compared to the Retail-Wholesale average.
  • The operating cash flow looks good at 3.2 times the net income.
  • The Genesco stock currently trades at a price to earnings ratio of 13.6. We rate this as a positive, compared to the industry average of 19.9.
  • When compared with the Retail-Apparel-Shoe industry average PS ratio of 0.7, the price-to-sales ratio of 0.3 for GCO stock is attractive.
  • The company has a healthy free cash flow margin of 16.5%.

Should you sell GCO stock?

  • Genesco reported an average operating margin of -3.3% over the Last Twelve Months (LTM).
  • Over the last 12 months, Genesco had an average Net loss of -3.8%.
  • Genesco has a negative ROIC (Return on Invested Capital) of -6.6%.
  • Genesco has a negative ROE (Return On Equity) of -12.9%, indicating the company is not profitable.

Comments on this video and Genesco stock

Amigobulls Genesco stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of GCO stock. The fundamentals of a company are vital to identify long-term investment opportunities.

Among the financials of the company, Genesco revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.