NEW YORK (
-- Movado Group
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- MOV's revenue growth has slightly outpaced the industry average of 13.2%. Since the same quarter one year prior, revenues rose by 15.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- MOV has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.88, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to its closing price of one year ago, MOV's share price has jumped by 48.48%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MOV should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for MOVADO GROUP INC is rather high; currently it is at 58.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.50% is above that of the industry average.
- Net operating cash flow has increased to $20.38 million or 15.68% when compared to the same quarter last year. Despite an increase in cash flow, MOVADO GROUP INC's cash flow growth rate is still lower than the industry average growth rate of 37.94%.
Movado Group, Inc. designs, sources, markets, and distributes fine watches. It offers its watches under the Movado, Ebel, Concord, ESQ, Coach, HUGO BOSS, Juicy Couture, Tommy Hilfiger, and Lacoste brands. The company also involves in the after-sales service activities and shipping. Movado Group has a market cap of $335.2 million and is part of the
industry. Shares are up 15.6% year to date as of the close of trading on Thursday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet RatingsStaff