Columbia Sportswear Company
Columbia Sportswear Company Fundamental Analysis
Columbia Sportswear Company (COLM) shows weak financial fundamentals with a PE ratio of 19.46, profit margin of 5.22%, and ROE of 10.53%. The company generates $3.4B in annual revenue with weak year-over-year growth of -3.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze COLM's fundamental strength across five key dimensions:
Efficiency Score
WeakCOLM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCOLM trades at attractive valuation levels.
Growth Score
WeakCOLM faces weak or negative growth trends.
Financial Health Score
ExcellentCOLM maintains a strong and stable balance sheet.
Profitability Score
WeakCOLM struggles to sustain strong margins.
Key Financial Metrics
Is COLM Expensive or Cheap?
P/E Ratio
COLM trades at 19.46 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, COLM's PEG of -9.26 indicates potential undervaluation.
Price to Book
The market values Columbia Sportswear Company at 2.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.84 times EBITDA. This signals the market has high growth expectations.
How Well Does COLM Make Money?
Net Profit Margin
For every $100 in sales, Columbia Sportswear Company keeps $5.22 as profit after all expenses.
Operating Margin
Core operations generate 5.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.53 in profit for every $100 of shareholder equity.
ROA
Columbia Sportswear Company generates $6.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Columbia Sportswear Company generates limited operating cash flow of $283.97M, signaling weaker underlying cash strength.
Free Cash Flow
Columbia Sportswear Company produces free cash flow of $217.55M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.04 in free cash annually.
FCF Yield
COLM converts 6.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-9.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How COLM Stacks Against Its Sector Peers
| Metric | COLM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.46 | 25.25 | Better (Cheaper) |
| ROE | 10.53% | 1170.00% | Weak |
| Net Margin | 5.22% | 742.00% | Weak |
| Debt/Equity | 0.51 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 2.59 | 9.19 | Strong Liquidity |
| ROA | 6.05% | -6467.00% (disorted) | Weak |
COLM outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Columbia Sportswear Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.76%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-21.43%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
100.05%
Industry Style: Cyclical, Growth, Discretionary
High Growth