Fossil Group Inc

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FOSL : NASDAQ : Consumer Goods
$28.55 -0.04 | -0.14%
Today's Range: 28.14 - 29.08
Avg. Daily Volume: 1,233,900
08/31/16 - 3:59 PM ET

Financial Analysis


FOSSIL GROUP INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. FOSSIL GROUP INC has average liquidity. Currently, the Quick Ratio is 1.19 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 13.48% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)685.37739.98
EBITDA ($mil)40.3598.44
EBIT ($mil)15.4576.91
Net Income ($mil)6.0254.65


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)231.84249.86
Total Assets ($mil)2226.542059.44
Total Debt ($mil)734.97694.73
Equity ($mil)945.25832.95


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin55.5458.25
EBITDA Margin5.8813.3
Operating Margin2.2510.39
Sales Turnover1.41.66
Return on Assets6.2717.02
Return on Equity14.7842.08
Debt Q2 FY16 Q2 FY15
Current Ratio3.193.58
Debt/Capital0.440.45
Interest Expense6.425.02
Interest Coverage2.4115.34


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)48.1348.29
Div / share0.00.0
EPS0.121.12
Book value / share19.6417.25
Institutional Own % n/a n/a
Avg Daily Volume1203283.01387403.0

Valuation


SELL. FOSSIL GROUP INC's P/E ratio indicates a significant discount compared to an average of 28.56 for the Textiles, Apparel & Luxury Goods industry and a significant discount compared to the S&P 500 average of 25.13. To use another comparison, its price-to-book ratio of 1.53 indicates a discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 6.53. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, FOSSIL GROUP INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
FOSL 10.40 Peers 28.56   FOSL 5.34 Peers 39.49

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
FOSL 14.66 Peers 23.81   FOSL NM Peers 2.75

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
FOSL 1.53 Peers 6.53   FOSL -57.69 Peers 8.11

Discount. 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 significant discount to 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
FOSL 0.47 Peers 2.74   FOSL -9.22 Peers 8.07

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 significant 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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