Canada Goose Holdings Inc.
Canada Goose Holdings Inc. Fundamental Analysis
Canada Goose Holdings Inc. (GOOS) shows weak financial fundamentals with a PE ratio of 74.57, profit margin of 1.47%, and ROE of 4.23%. The company generates $1.5B in annual revenue with weak year-over-year growth of 1.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GOOS's fundamental strength across five key dimensions:
Efficiency Score
WeakGOOS struggles to generate sufficient returns from assets.
Valuation Score
ModerateGOOS shows balanced valuation metrics.
Growth Score
ModerateGOOS shows steady but slowing expansion.
Financial Health Score
ModerateGOOS shows balanced financial health with some risks.
Profitability Score
WeakGOOS struggles to sustain strong margins.
Key Financial Metrics
Is GOOS Expensive or Cheap?
P/E Ratio
GOOS trades at 74.57 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GOOS's PEG of -2.94 indicates potential undervaluation.
Price to Book
The market values Canada Goose Holdings Inc. at 2.84 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.58 times EBITDA. This is generally considered low.
How Well Does GOOS Make Money?
Net Profit Margin
For every $100 in sales, Canada Goose Holdings Inc. keeps $1.47 as profit after all expenses.
Operating Margin
Core operations generate 5.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.23 in profit for every $100 of shareholder equity.
ROA
Canada Goose Holdings Inc. generates $1.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Canada Goose Holdings Inc. produces operating cash flow of $215.55M, showing steady but balanced cash generation.
Free Cash Flow
Canada Goose Holdings Inc. generates strong free cash flow of $185.79M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.92 in free cash annually.
FCF Yield
GOOS converts 11.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
74.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.84
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How GOOS Stacks Against Its Sector Peers
| Metric | GOOS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 74.57 | 24.85 | Worse (Expensive) |
| ROE | 4.23% | 1165.00% | Weak |
| Net Margin | 1.47% | 749.00% | Weak |
| Debt/Equity | 1.33 | 0.76 | Weak (High Leverage) |
| Current Ratio | 2.12 | 9.23 | Strong Liquidity |
| ROA | 1.20% | 1271.00% | Weak |
GOOS outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Canada Goose Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
59.87%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-27.24%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
431.44%
Industry Style: Cyclical, Growth, Discretionary
High Growth