G-III Apparel Group, Ltd. (NASDAQ:GIII) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of GIII, 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 digging a bit deeper into my commentary, read the full report on G-III Apparel Group here.
Undervalued with excellent balance sheet
GIII is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that GIII has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. GIII seems to have put its debt to good use, generating operating cash levels of 0.25x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. GIII is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if GIII's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, GIII's share price is trading below the group's average. This supports the theory that GIII is potentially underpriced.
For G-III Apparel Group, I've put together three fundamental factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for GIII’s future growth? Take a look at our free research report of analyst consensus for GIII’s outlook.
- Historical Performance: What has GIII'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 GIII? 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.
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