In this article, we will delve into the valuation of Caleres Inc, a leading footwear retailer. With a daily loss of 7.1% but a 5.52% gain over the past 3 months, investors are curious to know if Caleres is fairly valued. We will examine its financial condition, profitability, and growth prospects to determine if this company is worth considering. Let's explore Caleres Inc's intrinsic value and assess its potential as an investment.
Caleres Inc's Valuation
Caleres Inc, a prominent footwear retailer, has recently experienced a daily loss of 7.1% but has gained 5.52% over the past 3 months. This raises the question of whether Caleres is fairly valued. In this section, we will examine the company's financial condition, profitability, and growth prospects to determine its intrinsic value.
By assessing Caleres' stock price, market cap, and comparing it to the GuruFocus Fair Value (GF Value), we can gain insights into its valuation. Additionally, we will explore the company's financial strength and profitability to form a comprehensive evaluation of Caleres Inc.
Financial Condition and Profitability
Caleres Inc's financial strength is rated 5 out of 10, indicating a fair but not risk-free position. We will analyze the company's cash-to-debt ratio and compare it to its industry peers in the Retail - Cyclical sector.
In terms of profitability, Caleres has maintained profitability for 7 out of the past 10 years. With a revenue of $2.80 billion and an EPS of $4.37 over the last twelve months, the company's operating margin of 6.87% ranks above 66.55% of its industry counterparts. We will delve deeper into Caleres' profitability rank and its 3-year average annual revenue growth.
Growth Prospects
Caleres Inc has shown a 3-year average annual revenue growth of 13.8%, surpassing 74.55% of its industry competitors. However, its 3-year average EBITDA growth rate is 0%, which raises concerns. We will explore the factors contributing to Caleres' growth challenges and analyze its potential for future expansion.
Return on Invested Capital (ROIC)
Comparing Caleres' Return on Invested Capital (ROIC) with its Weighted Average Cost of Capital (WACC) provides insights into the company's profitability relative to its capital costs. With an ROIC of 11.78% significantly higher than its WACC of 6.08%, Caleres is generating value for its shareholders. We will delve into the implications of this analysis and its significance for potential investors.