Genesco Inc.
Genesco Inc. Fundamental Analysis
Genesco Inc. (GCO) shows weak financial fundamentals with a PE ratio of 22.16, profit margin of 0.54%, and ROE of 2.52%. The company generates $2.6B in annual revenue with weak year-over-year growth of 0.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GCO's fundamental strength across five key dimensions:
Efficiency Score
WeakGCO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGCO trades at attractive valuation levels.
Growth Score
WeakGCO faces weak or negative growth trends.
Financial Health Score
ExcellentGCO maintains a strong and stable balance sheet.
Profitability Score
ModerateGCO maintains healthy but balanced margins.
Key Financial Metrics
Is GCO Expensive or Cheap?
P/E Ratio
GCO trades at 22.16 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GCO's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Genesco Inc. at 0.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -5.31 times EBITDA. This is generally considered low.
How Well Does GCO Make Money?
Net Profit Margin
For every $100 in sales, Genesco Inc. keeps $0.54 as profit after all expenses.
Operating Margin
Core operations generate 0.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.52 in profit for every $100 of shareholder equity.
ROA
Genesco Inc. generates $0.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Genesco Inc. generates limited operating cash flow of $153.08M, signaling weaker underlying cash strength.
Free Cash Flow
Genesco Inc. produces free cash flow of $153.08M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $14.10 in free cash annually.
FCF Yield
GCO converts 47.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How GCO Stacks Against Its Sector Peers
| Metric | GCO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.16 | 23.78 | Neutral |
| ROE | 2.52% | 1098.00% | Weak |
| Net Margin | 0.54% | -626.00% (disorted) | Weak |
| Debt/Equity | 0.92 | 0.86 | Neutral |
| Current Ratio | 1.64 | 2.64 | Neutral |
| ROA | 0.95% | -8081.00% (disorted) | Weak |
GCO outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Genesco Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.80%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-144.14%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
7.60%
Industry Style: Cyclical, Growth, Discretionary
Growing