Movado Group, Inc.
Movado Group, Inc. Fundamental Analysis
Movado Group, Inc. (MOV) shows weak financial fundamentals with a PE ratio of 23.36, profit margin of 3.96%, and ROE of 5.33%. The company generates $0.5B in annual revenue with weak year-over-year growth of -2.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MOV's fundamental strength across five key dimensions:
Efficiency Score
WeakMOV struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMOV trades at attractive valuation levels.
Growth Score
WeakMOV faces weak or negative growth trends.
Financial Health Score
ExcellentMOV maintains a strong and stable balance sheet.
Profitability Score
WeakMOV struggles to sustain strong margins.
Key Financial Metrics
Is MOV Expensive or Cheap?
P/E Ratio
MOV trades at 23.36 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MOV's PEG of 0.74 indicates potential undervaluation.
Price to Book
The market values Movado Group, Inc. at 1.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.17 times EBITDA. This signals the market has high growth expectations.
How Well Does MOV Make Money?
Net Profit Margin
For every $100 in sales, Movado Group, Inc. keeps $3.96 as profit after all expenses.
Operating Margin
Core operations generate 4.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.33 in profit for every $100 of shareholder equity.
ROA
Movado Group, Inc. generates $3.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Movado Group, Inc. generates limited operating cash flow of $39.49M, signaling weaker underlying cash strength.
Free Cash Flow
Movado Group, Inc. produces free cash flow of $36.41M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.33 in free cash annually.
FCF Yield
MOV converts 12.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.74
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How MOV Stacks Against Its Sector Peers
| Metric | MOV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.36 | 24.36 | Neutral |
| ROE | 5.33% | 1165.00% | Weak |
| Net Margin | 3.96% | 795.00% | Weak |
| Debt/Equity | 0.11 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 4.58 | 2.80 | Strong Liquidity |
| ROA | 3.58% | -8356.00% (disorted) | Weak |
MOV outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Movado Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-3.21%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-55.34%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-104.87%
Industry Style: Cyclical, Growth, Discretionary
Declining