GCO  Genesco Inc.

Exchange

NYSE

Sector

Consumer Services

Industry

Clothing/Shoe/Accessory Stores

Market Cap.

1.21B

Vuru Grade

58.24/100

Current Price

$61.10
+0.50 (+0.83%)

Growth Price

$52.96
Overvalued by 13.32%

Stability Price

$204.10
Undervalued by 234.05%

Company Metrics

  • P/E 13.24
  • P/S 0.41
  • P/B 1.40
  • EPS 4.61
  • Cash ROIC 6.43%
  • Cash Ratio 0.41
  • Dividend 0.00 / 0.00 %
  • Avg. Vol. 268,730.00
  • Shares 23.00M
  • Market Cap. 1.21B

Company Description

Genesco Inc. engages in the retail of footwear, headwear, and sports apparel and accessories; and the wholesale of footwear. Its Journeys Group segment operates the Journeys, Journeys Kidz, and Shi by Journeys retail footwear chains, as well as involves in catalog and e-commerce operations. As of January 29, 2011, Journeys Group operated 1,017 stores, including 149 Journeys Kidz stores and 55 Shi ... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Genesco Reports Comparable Sales
PR Newswire (press release) - Jan 9, 2017
NASHVILLE, Tenn., Jan. 9, 2017 /PRNewswire/ -- Genesco Inc. (NYSE: GCO) announced today that comparable sales, including both stores and direct sales, were flat for the quarter-to-date period ended January 5, 2017.
Journeys' Holiday Sales Were Sluggish But Analysts Are Upbeat - Footwear News
HCA, Genesco climb on profit updates - Nashville Post (subscription)
Genesco To Acquire Little Burgundy Chain From The Aldo Group
PR Newswire (press release) - Nov 3, 2015
3, 2015 /PRNewswire/ -- Genesco Inc. (NYSE: GCO) announced today that its Canadian subsidiary has entered into an agreement with the Aldo Group Inc. to acquire the 37-store Little Burgundy retail footwear chain in Canada.
Genesco to buy Candian footwear chain - Nashville Business Journal
Genesco to buy Canadian footwear retailer, Little Burgundy - The Tennessean
The Genesco Inc. (GCO) Stock Rating Lowered by Zacks Investment Research
DailyQuint - 5 hours ago
Genesco Inc. (NYSE:GCO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Thursday.
Zacks Gives Genesco Inc. (NYSE:GCO) Score Of 2.67 - Investor Newswire
Broker Changes For Genesco Inc. (NYSE:GCO) - NewsDen
BSN SPORTS Acquires Lids Team Sports From Genesco Inc.
PR Newswire (press release) - Jan 19, 2016
DALLAS, Jan. 19, 2016 /PRNewswire/ -- BSN SPORTS, a division of Varsity Brands and a leading direct marketer and distributor of sporting goods to the school and league markets, announced today that it has acquired Lids Team Sports from the Lids Sports ...
Genesco Divests Lids Team Sports, Perks Up Buyback Plan - Zacks.com
Genesco sells Lids team sports division - Chain Store Age
Genesco Lays An Egg In Q3
Seeking Alpha - Dec 26, 2016
Genesco (NYSE:GCO) has put shareholders through quite the roller coaster ride in the past couple of years as sentiment flies and plummets seemingly with each quarterly report.
Genesco Announces Additional Stock Repurchase Authorization
PR Newswire (press release) - Sep 21, 2015
NASHVILLE, Tenn., Sept. 21, 2015 /PRNewswire/ -- Genesco Inc. (NYSE: GCO) announced today that its board of directors has authorized it to repurchase up to $100 million of the Company's common stock.
Genesco Reports Second Quarter Fiscal 2017 Results
PR Newswire (press release) - Sep 1, 2016
NASHVILLE, Tenn., Sept. 1, 2016 /PRNewswire/ -- Genesco Inc. (NYSE: GCO) today reported earnings from continuing operations for the second quarter ended July 30, 2016, of $14.5 million, or $0.72 per diluted share, compared to earnings from continuing ...
Genesco (GCO) Tops Q2 Earnings, Misses Sales, Trims View - Nasdaq
Genesco Inc. (GCO) Stock Drops on Poor Sales, Lowered Guidance - Bidness ETC
Form SC 13G/A GENESCO INC Filed by: ROYCE & ASSOCIATES LP
StreetInsider.com - Feb 1, 2017
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13G (Rule 13d-102) Information statement pursuant to Rules 13d-1 and 13d-2 Under the Securities Exchange Act of 1934 (Amendment No.3) Genesco Inc. (Name of Issuer) ...
The Oxford Asset Management Has $3432000 Stake in Genesco Inc. (GCO)
DailyQuint - Feb 21, 2017
Oxford Asset Management increased its position in Genesco Inc. (NYSE:GCO) by 121.5% during the fourth quarter, according to its most recent disclosure with the SEC.
Genesco Inc (NYSE:GCO) Stock Technicals Hit Weakness
CML News - Feb 10, 2017
This is a technical analysis stock rating for Genesco Inc (NYSE:GCO) . The company has a two bull technical rating which indicates some weakness.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for GCO to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate GCO's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$61.10 Current Price

$52.96 Growth Price (DCF)

Overvalued by 13.32%


Growth Rate Assumed by Market: 11.31%


Future Free Cash Flow Growth Rate: -2.2%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$204.10 Stability Price (EPV)

Undervalued by 234.05%


Discount Rate: 15.0%

$9.29 NCA Price

Overvalued by 84.79%

$73.26 Book Price

Undervalued by 19.90%


Poor Cash Return on Invested Capital over the past 5 years

GCO has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

GCO has only created $6.43 of cash for every $100 invested.
Figures in USD. Fiscal year ends in January
20122013201420152016
Free Cash Flow 95.50M 51.47M 41.54M 86.65M 44.47M
divided by
Invested Capital 879.01M 997.94M 1.07B 1.06B 1.08B
Cash ROIC 10.86% 5.16% 3.87% 8.14% 4.10%

Satisfactory Return on Equity over the past 5 years

GCO has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

GCO has generated $10.99 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in January
20122013201420152016
Net Income 81.96M 110.54M 92.65M 97.73M 94.57M
divided by
Stockholders' Equity 715.36M 808.59M 916.19M 996.81M 955.16M
Return on Equity 11.46% 13.67% 10.11% 9.80% 9.90%

Good Business Performance over the past 10 years

It's likely GCO has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is GCO has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

GCO has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Free Cash Flow -2.72M -56.72M 129.68M 108.27M 73.31M 95.50M 51.47M 41.54M 86.65M 44.47M

Good Balance Sheet

GCO's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Cash 16.74M 17.70M 17.67M 82.15M 55.93M 53.79M 59.80M 59.45M 112.87M 133.29M
Current Assets 335.07M 383.67M 398.12M 450.07M 513.06M 595.31M 682.27M 756.88M 847.66M 800.09M
Total Assets 729.37M 804.56M 818.03M 863.65M 961.08M 1.24B 1.33B 1.44B 1.58B 1.54B
Current Liabilities 134.74M 145.57M 138.98M 169.66M 234.36M 304.46M 276.05M 305.58M 405.92M 323.62M
Total Liabilities 324.15M 383.14M 371.09M 281.34M 336.76M 521.90M 525.20M 523.09M 586.28M 586.33M
Stockholder' Equity 405.23M 421.42M 446.93M 582.31M 624.32M 715.36M 808.59M 916.19M 996.81M 955.16M
Current Ratio 2.49 2.64 2.86 2.65 2.19 1.96 2.47 2.48 2.09 2.47
TL-to-TA 0.44 0.48 0.45 0.33 0.35 0.42 0.39 0.36 0.37 0.38

Consistent Reinvestment of Profits over the past 10 years

GCO has consistently retained profits. This may put GCO in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, GCO can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Retained Earnings 306.62M 309.03M 432.32M 452.21M 505.22M 586.99M 655.92M 734.53M 820.56M 768.22M
Retained Earnings Growth - 0.79% 39.90% 4.60% 11.72% 16.18% 11.74% 11.99% 11.71% -6.38%

Highly Competitive Industry over the past 10 years

It's likely that GCO is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely GCO invests heavily in R&D and Sales, General & Administrative expenses.

Only $3.76 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Net Income 67.65M 6.89M 152.64M 28.81M 53.21M 81.96M 110.54M 92.65M 97.73M 94.57M
divided by
Revenue 1.46B 1.50B 1.55B 1.57B 1.79B 2.29B 2.60B 2.62B 2.86B 3.02B
Net Profit Margin 4.63% 0.46% 9.84% 1.83% 2.97% 3.58% 4.24% 3.53% 3.42% 3.13%

Varying Pricing Power over the past 10 years

GCO has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$54.73 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Gross Profit 730.84M 751.22M 779.98M 795.87M 901.85M 2.29B 1.30B 1.30B 1.40B 1.44B
divided by
Revenue 1.46B 1.50B 1.55B 1.57B 1.79B 2.29B 2.60B 2.62B 2.86B 3.02B
Gross Margin 50.04% 50.01% 50.27% 50.55% 50.39% 100.00% 49.84% 49.49% 48.97% 47.76%

High Capital Intensity over the past 10 years

GCO spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

192.82% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Capital Expenditure 73.29M 80.66M 49.42M 33.83M 29.30M 49.46M 71.74M 98.46M 103.11M 100.65M
divided by
Net Income 67.65M 6.89M 152.64M 28.81M 53.21M 81.96M 110.54M 92.65M 97.73M 94.57M
Capital Expenditure Ratio 108.34% 1,171.56% 32.38% 117.39% 55.06% 60.34% 64.90% 106.26% 105.51% 106.43%

Inconsistent Dividend History over the past 10 years

GCO has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Dividend Paid 256,000.00 217,000.00 198,000.00 198,000.00 197,000.00 - - - - -
divided by
Shares Outstanding 26.02M 22.99M 23.91M 23.50M 23.72M 23.85M 24.04M 23.62M 23.71M 23.00M
Dividend Paid Per Share 0.01 0.01 0.01 0.01 0.01 - - - - -
Price at Year End 38.50 16.92 27.95 37.75 61.74 53.65 73.06 77.18 57.65 62.10
Dividend Yield 0.03% 0.06% 0.03% 0.02% 0.01% - - - - -

History of Stock Buybacks over the past 10 years

GCO has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Shares Outstanding 26.02M 22.99M 23.91M 23.50M 23.72M 23.85M 24.04M 23.62M 23.71M 23.00M
Stock Bought Back - 13.16% -3.84% 1.75% -0.91% -0.55% -0.79% 1.79% -0.39% 3.08%
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