The Value of G-III Apparel Group, Ltd. (GIII) Underpriced by 15.5%?

Publicly-traded company G-III Apparel Group, Ltd. (NASDAQ:GIII) had a closing price of $25.11 yesterday. Meanwhile, the average 12-month price target from Wall Street analysts is currently $29.70, this means that the stock is underpriced by 15.455%. In the past 52 weeks the company’s stock price has moved within the range of $18.18 to $44.36.

This particular stock’s 5-day moving average is 25.54, its 20-day moving average is 25.40 and its 100-day moving average is 25.34. G-III Apparel Group, Ltd. (GIII) currently has 47745 shares outstanding, which means that its market capitalization is $1.20B.

The Details: G-III Apparel Group, Ltd. (GIII) Financial Health

There is more than one indicator we can consider while evaluating a potential stock’s financial performance. For example, we can find out a public company’s profit margin, which lets us know how much of a company’s net sales revenue was retained as earnings – which we calculate by dividing net income by total sales revenue. GIII currently has a profit margin of 4.50%.

It’s also useful to check out a company’s operating margin, which lets us know how much profit is retained after taking operating costs and depreciation into consideration. G-III Apparel Group, Ltd. (GIII) has an operating margin of 7.60%.

We can also look at Return on Assets, which is a percentage that tells us how good a public company is at using its current assets to generate a profit. Higher percentages mean that the company is better at using its assets. At the moment, G-III Apparel Group, Ltd. Return on Assets is 5.70%.

What Does Wall Street Say about Company?

When selecting stocks to purchase, many investors want to know what Wall Street analysts are thinking before they pull the trigger. They often look for the average analyst rating. At the moment, the average analyst rating for GIII is Overweight. Out of 10 total analysts who were surveyed, 0 rated it a sell, 0 rated it a underweight, 1 rated it an overweight, 5 rated it hold, and 4 rated it a Buy.

Understanding Profitability at G-III Apparel Group, Ltd. (GIII)

A good method of evaluating a public company’s profitability is by taking a look at its Earnings per Share (EPS) performance. In the most recent financial results released by G-III Apparel Group, Ltd., for the quarter ending on 10/2019, the company posted EPS of 1.94. The average estimate of Wall Street analysts had projected 1.99.