Fossil Group Inc

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FOSL : NASDAQ : Consumer Goods
$32.69 | %
Today's Range: 32.58 - 33.85
Avg. Daily Volume: 912300.0
12/02/16 - 4:00 PM ET

Financial Analysis


FOSSIL GROUP INC's gross profit margin for the third quarter of its fiscal year 2016 has decreased 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 1.31 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 13.23% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)738.0771.3
EBITDA ($mil)0.098.62
EBIT ($mil)35.778.85
Net Income ($mil)17.457.53


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)236.0301.57
Total Assets ($mil)2257.62254.88
Total Debt ($mil)723.8807.43
Equity ($mil)984.9869.79


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin52.1856.72
EBITDA Margin0.012.78
Operating Margin4.8410.22
Sales Turnover1.361.46
Return on Assets4.4113.49
Return on Equity10.1134.99
Debt Q3 FY16 Q3 FY15
Current Ratio3.283.61
Debt/Capital0.420.48
Interest Expense7.05.1
Interest Coverage5.115.45


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)48.1348.12
Div / share0.00.0
EPS0.361.19
Book value / share20.4618.08
Institutional Own % n/a n/a
Avg Daily Volume882029.01201014.0

Valuation


SELL. This stock's P/E ratio indicates a discount compared to an average of 24.75 for the Textiles, Apparel & Luxury Goods industry and a discount compared to the S&P 500 average of 25.16. To use another comparison, its price-to-book ratio of 1.70 indicates a discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 5.34. 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 16.92 Peers 24.75   FOSL NA Peers 20.01

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.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
FOSL 17.43 Peers 20.83   FOSL NM Peers 2.75

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

FOSL is trading at a valuation on par with 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 1.70 Peers 5.34   FOSL -66.01 Peers 5.25

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 0.55 Peers 2.24   FOSL -6.84 Peers 6.70

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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