-0.89 | -0.84%
FOSSIL INC's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. FOSSIL INC has strong liquidity. Currently, the Quick Ratio is 1.64 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has increased by 10.18% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 680.9 | 589.53 |
| EBITDA ($mil) | 113.08 | 98.69 |
| EBIT ($mil) | 94.32 | 83.46 |
| Net Income ($mil) | 72.19 | 58.14 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 241.65 | 260.68 |
| Total Assets ($mil) | 1856.57 | 1571.36 |
| Total Debt ($mil) | 152.73 | 20.59 |
| Equity ($mil) | 1236.64 | 1122.36 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 58.34 | 58.39 |
| EBITDA Margin | 16.6 | 16.74 |
| Operating Margin | 13.85 | 14.16 |
| Sales Turnover | 1.59 | 1.67 |
| Return on Assets | 19.25 | 18.9 |
| Return on Equity | 28.9 | 26.46 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 3.65 | 3.9 |
| Debt/Capital | 0.11 | 0.02 |
| Interest Expense | 1.23 | 0.81 |
| Interest Coverage | 76.62 | 102.53 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 59.2 | 61.81 |
| Div / share | 0.0 | 0.0 |
| EPS | 1.21 | 0.93 |
| Book value / share | 20.89 | 18.16 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 788123.0 | 801842.0 |
BUY. FOSSIL INC's P/E ratio indicates a discount compared to an average of 26.03 for the Textiles, Apparel & Luxury Goods industry and a value on par with the S&P 500 average of 19.08. For additional comparison, its price-to-book ratio of 5.13 indicates a significant premium versus the S&P 500 average of 2.44 and a discount versus the industry average of 5.58. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, FOSSIL INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FOSL 18.15 | Peers 26.03 | FOSL 12.67 | Peers 21.93 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. FOSL is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. FOSL is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| FOSL 15.41 | Peers 33.22 | FOSL 1.72 | Peers 1.85 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. FOSL is trading at a significant discount to its peers. |
Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. FOSL trades at a valuation on par to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| FOSL 5.13 | Peers 5.58 | FOSL 25.79 | Peers 72.04 | |||||||||||||||||||||
|
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. FOSL is trading at a valuation on par with its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, FOSL is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| FOSL 2.15 | Peers 2.73 | FOSL 12.55 | Peers 39.24 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. FOSL is trading at a discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. FOSL significantly trails its peers on the basis of sales growth |
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