I've been keeping an eye on Movado Group, Inc. (NYSE:MOV) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe MOV has a lot to offer. Basically, it is a company that has been able to sustain great financial health, trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Movado Group here.
Undervalued with excellent balance sheet
MOV's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. MOV appears to have made good use of debt, producing operating cash levels of 1.28x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. MOV's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of MOV's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the luxury industry, MOV is also trading below its peers, relative to earnings generated. This supports the theory that MOV is potentially underpriced.
For Movado Group, there are three relevant aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for MOV’s future growth? Take a look at our free research report of analyst consensus for MOV’s outlook.
- Historical Performance: What has MOV's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MOV? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.