NYSE:GCO

Stock Analysis Report

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Market Cap

US$860.4m

Last Updated

2021/07/28 02:49 UTC

Data Sources

Company Financials +

Executive Summary

Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories. More Details


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: GCO's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

1.9%

GCO

1.6%

US Specialty Retail

0.9%

US Market


1 Year Return

243.1%

GCO

67.9%

US Specialty Retail

37.8%

US Market

Return vs Industry: GCO exceeded the US Specialty Retail industry which returned 67.9% over the past year.

Return vs Market: GCO exceeded the US Market which returned 37.8% over the past year.


Shareholder returns

GCOIndustryMarket
7 Day1.9%1.6%0.9%
30 Day-9.6%0.5%0.3%
90 Day10.1%-0.3%2.1%
1 Year243.1%243.1%69.1%67.9%40.0%37.8%
3 Year41.4%41.4%93.1%86.3%63.8%53.5%
5 Year-13.3%-13.3%116.5%101.9%124.6%99.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GCO ($57.53) is trading above our estimate of fair value ($44.01)

Significantly Below Fair Value: GCO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GCO is good value based on its PE Ratio (9.4x) compared to the US Specialty Retail industry average (13.6x).

PE vs Market: GCO is good value based on its PE Ratio (9.4x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GCO is good value based on its PB Ratio (1.5x) compared to the US Specialty Retail industry average (3.4x).


Future Growth

How is Genesco forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

4.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GCO's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if GCO'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: GCO's revenue (4.9% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: GCO's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GCO's Return on Equity is forecast to be low in 3 years time (12.8%).


Past Performance

How has Genesco performed over the past 5 years?

-29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GCO has a large one-off loss of $17.6M impacting its May 1 2021 financial results.

Growing Profit Margin: GCO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GCO's earnings have declined by 29.4% per year over the past 5 years.

Accelerating Growth: GCO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GCO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (123%).


Return on Equity

High ROE: GCO's Return on Equity (15.1%) is considered low.


Financial Health

How is Genesco's financial position?


Financial Position Analysis

Short Term Liabilities: GCO's short term assets ($722.4M) exceed its short term liabilities ($435.9M).

Long Term Liabilities: GCO's short term assets ($722.4M) exceed its long term liabilities ($647.4M).


Debt to Equity History and Analysis

Debt Level: GCO's debt to equity ratio (7.6%) is considered satisfactory.

Reducing Debt: GCO's debt to equity ratio has reduced from 12.9% to 7.6% over the past 5 years.

Debt Coverage: GCO's debt is well covered by operating cash flow (520.1%).

Interest Coverage: GCO's interest payments on its debt are well covered by EBIT (16.6x coverage).


Balance Sheet


Dividend

What is Genesco current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GCO'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?

2.0yrs

Average management tenure


CEO

Mimi Vaughn (54 yo)

1.42yrs

Tenure

US$2,796,797

Compensation

Ms. Mimi Eckel Vaughn has been President and Chief Executive Officer of Genesco Inc. since February 02, 2020 and served as its Interim Chief Financial Officer since November 27, 2020 until December 14, 202...


CEO Compensation Analysis

Compensation vs Market: Mimi's total compensation ($USD2.80M) is about average for companies of similar size in the US market ($USD2.44M).

Compensation vs Earnings: Mimi's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GCO's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: GCO's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: GCO 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

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


Key Information

  • Name: Genesco Inc.
  • Ticker: GCO
  • Exchange: NYSE
  • Founded: 1924
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$860.414m
  • Shares outstanding: 14.96m
  • Website: https://www.genesco.com

Number of Employees


Location

  • Genesco Inc.
  • Genesco Park
  • 1415 Murfreesboro Pike
  • Nashville
  • Tennessee
  • 37217-2895
  • United States

Listings


Biography

Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories. The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Licensed Bran...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/28 02:49
End of Day Share Price2021/07/27 00:00
Earnings2021/05/01
Annual Earnings2021/01/30


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.