NYSE:MOV

Stock Analysis Report

Executive Summary

Movado Group, Inc. designs, develops, sources, markets, and distributes watches in the United States and internationally.


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has Movado Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MOV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.3%

MOV

-7.4%

US Luxury

-1.1%

US Market


1 Year Return

-68.8%

MOV

-25.8%

US Luxury

-13.6%

US Market

Return vs Industry: MOV underperformed the US Luxury industry which returned -25.8% over the past year.

Return vs Market: MOV underperformed the US Market which returned -13.6% over the past year.


Shareholder returns

MOVIndustryMarket
7 Day-4.3%-7.4%-1.1%
30 Day-25.0%-21.8%-17.8%
90 Day-49.3%-33.3%-22.5%
1 Year-67.8%-68.8%-24.2%-25.8%-11.9%-13.6%
3 Year-51.0%-54.2%18.8%13.2%12.1%4.9%
5 Year-62.6%-66.3%1.7%-5.4%30.5%16.3%

Price Volatility Vs. Market

How volatile is Movado Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Movado Group undervalued compared to its fair value and its price relative to the market?

14.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MOV ($10.65) is trading below our estimate of fair value ($12.45)

Significantly Below Fair Value: MOV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MOV is good value based on its PE Ratio (5.8x) compared to the Luxury industry average (10.5x).

PE vs Market: MOV is good value based on its PE Ratio (5.8x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MOV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MOV is good value based on its PB Ratio (0.5x) compared to the US Luxury industry average (0.6x).


Next Steps

Future Growth

How is Movado Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-12.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MOV's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if MOV's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MOV's revenue is expected to decline over the next 3 years (-12.8% per year).

High Growth Revenue: MOV's revenue is forecast to decline over the next 3 years (-12.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MOV's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Movado Group performed over the past 5 years?

-3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MOV has a large one-off gain of $15.5M impacting its January 31 2020 financial results.

Growing Profit Margin: MOV's current net profit margins (6.1%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: MOV's earnings have declined by -3.5% per year over the past 5 years.

Accelerating Growth: MOV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MOV had negative earnings growth (-30.7%) over the past year, making it difficult to compare to the Luxury industry average (3.2%).


Return on Equity

High ROE: MOV's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is Movado Group's financial position?


Financial Position Analysis

Short Term Liabilities: MOV's short term assets ($464.6M) exceed its short term liabilities ($109.3M).

Long Term Liabilities: MOV's short term assets ($464.6M) exceed its long term liabilities ($207.6M).


Debt to Equity History and Analysis

Debt Level: MOV's debt to equity ratio (9.8%) is considered satisfactory.

Reducing Debt: MOV's debt to equity ratio has increased from 0.06% to 9.8% over the past 5 years.

Debt Coverage: MOV's debt is well covered by operating cash flow (61.8%).

Interest Coverage: MOV's interest payments on its debt are well covered by EBIT (50.8x coverage).


Balance Sheet

Inventory Level: MOV has a high level of physical assets or inventory.

Debt Coverage by Assets: MOV's debt is covered by short term assets (assets are 8.9x debt).


Next Steps

Dividend

What is Movado Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MOV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MOV's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MOV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MOV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MOV is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MOV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.8yrs

Average management tenure


CEO

Efraim Grinberg (61yo)

18.92s

Tenure

US$5,480,928

Compensation

Mr. Efraim Grinberg has been the Chief Executive Officer and Chairman of Movado Group, Inc. since May 15, 2001 and January 31, 2009 respectively. Mr. Grinberg joined Movado in June 1980. He oversaw Movado’ ...


CEO Compensation Analysis

Compensation vs Market: Efraim's total compensation ($USD5.48M) is above average for companies of similar size in the US market ($USD1.45M).

Compensation vs Earnings: Efraim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Efraim Grinberg
Chairman & CEO18.92yrsUS$5.48m10.28% $25.2m
Sallie DeMarsilis
Senior VP12.08yrsUS$1.23m0.12% $301.8k
Francis Morelli
Senior Vice President of Global Information Technology & Operationsno dataUS$1.14m0.16% $386.7k
Mitchell Sussis
Senior VP4.42yrsUS$760.87k0.042% $102.8k
Vivian D'Elia
Senior Vice President of Human Resources23.25yrsUS$563.73k0.078% $190.1k
Mary Leach
Chief Marketing Officerno datano datano data
Alexander Grinberg
Senior VP of Customer & Consumer Centric Initiatives and Director9yrsno data1.48% $3.6m
Joseph Faranda
Senior Vice President of Consumer Insights & Strategic PLA9.83yrsno datano data
Behzad Soltani
Chief Digital Officer2.08yrsno datano data
Jon Step
President of Licensed Brandsno datano datano data

9.8yrs

Average Tenure

61yo

Average Age

Experienced Management: MOV's management team is seasoned and experienced (9.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Efraim Grinberg
Chairman & CEO18.92yrsUS$5.48m10.28% $25.2m
Alexander Grinberg
Senior VP of Customer & Consumer Centric Initiatives and Director9yrsno data1.48% $3.6m
Richard Coté
Director20.25yrsUS$176.22k0.77% $1.9m
Peter Bridgman
Independent Director6.17yrsUS$176.20k0.090% $220.8k
Ann Kirschner
Director0.83yrno datano data
Alan Howard
Lead Director8.92yrsUS$212.67k0.17% $409.8k
Nathan Leventhal
Independent Director16.42yrsUS$187.50k0.075% $183.1k
Maurice Reznik
Independent Director9yrsUS$175.63k0.16% $380.6k
Richard Isserman
Independent Director14.83yrsUS$192.56k0.073% $179.6k
Stephen Sadove
Director1.67yrsUS$84.63kno data

9.0yrs

Average Tenure

65.5yo

Average Age

Experienced Board: MOV's board of directors are considered experienced (9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Movado Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Movado Group, Inc.
  • Ticker: MOV
  • Exchange: NYSE
  • Founded: 1961
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$245.299m
  • Shares outstanding: 23.03m
  • Website: https://www.movadogroup.com

Number of Employees


Location

  • Movado Group, Inc.
  • 650 From Road
  • Suite 375
  • Paramus
  • New Jersey
  • 07652-3556
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MOVNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1993
MV4DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1993

Biography

Movado Group, Inc. designs, develops, sources, markets, and distributes watches in the United States and internationally. It operates in two segments, Watch and Accessory Brands; and Company Stores. The company offers its watches under the Movado, Concord, Ebel, Olivia Burton, and MVMT owned brands, as well as under the Coach, Tommy Hilfiger, HUGO BOSS, Lacoste, SCUDERIA FERRARI, Rebecca Minkoff, and Uri Minkoff licensed brands. It also provides after-sales and shipping services. As of January 31, 2020, the company operated 47 retail outlet locations. Its customers include jewelry store chains, department stores, independent regional jewelers, licensors’ retail stores, and a network of independent distributors. The company was formerly known as North American Watch Corporation and changed its name to Movado Group, Inc. in 1996. Movado Group, Inc. was founded in 1961 and is based in Paramus, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 02:04
End of Day Share Price2020/04/01 00:00
Earnings2020/01/31
Annual Earnings2020/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.