ICON  Iconix Brand Group Inc.

Exchange

NASDAQ

Sector

Consumer Non-Durables

Industry

Shoe Manufacturing

Market Cap.

324.85M

Vuru Grade

63.17/100

Current Price

$5.69
+0.16 (+2.89%)

Growth Price

$24.28
Undervalued by 326.69%

Company Metrics

  • P/E 4.14
  • P/S 0.89
  • P/B 0.71
  • EPS -4.34
  • Cash ROIC 8.01%
  • Cash Ratio 0.59
  • Dividend 0 / 0%
  • Avg. Vol. 509,317.00
  • Shares 57.09M
  • Market Cap. 324.85M

Company Description

Iconix Brand Group, Inc. operates as a brand management company that engages in licensing, marketing, and providing trend direction for a portfolio of owned consumer brands. As of March 31, 2011, the company and its joint ventures owned 23 iconic consumer brands, including Candie's, Bongo, Badgley Mischka, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific/OP, Danskin/Danskin Now, Rocawe... more


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

News

Iconix Brand Group to Present at the B. Riley Consumer Conference
PR Newswire (press release) - 4 hours ago
NEW YORK, Sept. 26, 2017 /PRNewswire/ -- Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company"), today announced that its Chief Executive Officer, John Haugh is scheduled to present at the B. Riley Annual Consumer Conference in New York ...
Iconix Brand Group (NASDAQ:ICON) and Its Rivals Financial Contrast - The Ledger Gazette
Iconix Brand Group, Inc. (NASDAQ:ICON) Experiences Lighter than Average ... - Modern Readers
Why Iconix Brand Group Inc. Stock Lost 16% in August
Motley Fool - Sep 11, 2017
The company's guidance now calls for full-year revenue to be between $225 milion and $235 million, compared with the range of $235 million to $245 million that Haugh and his team issued back in May.
Iconix Brand Group: Q2 Breakdown
Seeking Alpha - Aug 10, 2017
The company announced its moving two of its brands from Wal-Mart to new partners and are expanding the brands, a move that will likely increase sales. Four positive announcements will occur in the coming weeks and months. Three will be about important ...
Iconix (ICON) Q2 Earnings & Sales Beat, View Cut Hits Stock - Nasdaq
Iconix Brand Group to Present at CL King's Best Ideas Conference 2017
PR Newswire (press release) - Sep 11, 2017
NEW YORK, Sept. 11, 2017 /PRNewswire/ -- Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company"), today announced that its Chief Financial Officer, Dave Jones is scheduled to present at CL King's Best Ideas Conference 2017 in New York, NY ...
Iconix Brand Group, Inc. (ICON) Receives $10.17 Consensus PT from Analysts - StockNewsTimes
Iconix Brand Group Announces Hiring of June K. DeFabio as EVP of Women's and Home
PR Newswire (press release) - Sep 5, 2017
Prior to joining Ralph Lauren in 2009, she held senior level merchant and planning positions at Macy's Inc. and May Company. "We are thrilled to welcome June to Iconix. June has extensive experience in brand licensing and retail, and has a track record ...
Texas Permanent School Fund Has $288000 Holdings in Iconix Brand Group, Inc ... - Dispatch Tribunal
Latest Analysts Research Reports About Iconix Brand Group, Inc. (ICON ... - Post Analyst
Iconix Brand Group's Debt Concerns Are Behind It
Seeking Alpha - May 12, 2017
Iconix Brand Group (NASDAQ:ICON) announced on May 10th, 2017 (Q1 earnings) that it has sold its entertainment segment, including its stake in Peanuts and Strawberry Shortcake, to PHX Media for $345 million.
Iconix Brand Group Inc (ICON) Sells 'Peanuts' in $345 Million Deal - Investorplace.com
Iconix Brand Group Reports First Quarter 2017 Financial Results - PR Newswire (press release)
Iconix Brand Group: New Developments At Baird Global Consumer, Technology ...
Seeking Alpha - Jun 9, 2017
According to CEO John Haugh, company is still on track to deliver its promises of improving the balance sheet and creating organic growth.
Highlights From Iconix Brand's Q2 2017 Report
Motley Fool - Aug 18, 2017
Iconix Brand Group (NASDAQ:ICON) recently released disappointing numbers for the second quarter of 2017. Shares fell as ... However, with the debt situation taken care of for now, generating organic growth is now the chief concern for Haugh and company.
Recent Insider Trade: SCHAEFER JASON sold 3284 Shares Of Iconix Brand Group ... - Economic News
Iconix Brand Group, Inc. (ICON) Reached a 52-Week High - Modern Readers
Iconix Brand Group Extends Maturity of Variable Funding Notes to January 2020
PR Newswire (press release) - Aug 21, 2017
NEW YORK, Aug. 21, 2017 /PRNewswire/ -- Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company"), today announced that it has amended its $100 million variable funding notes to extend the renewal date from January 2018 to January 2020.
Iconix Brand Group, Inc. (ICON) Reached a New 52-Week Low - Modern Readers
Option Market Alert: Iconix Brand Group Inc Implied Price Swing Hits An ...
CML News - Sep 25, 2017
No Risk Alert Here: Before we dive into any analysis we simply note that Iconix Brand Group Inc (NASDAQ:ICON) risk is neither elevated nor depressed.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for ICON 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 ICON'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.

$5.69 Current Price

$24.28 Growth Price (DCF)

Undervalued by 326.69%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: 8.4%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$10.29 Book Price

Undervalued by 80.76%


Poor Cash Return on Invested Capital over the past 5 years

ICON 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.

ICON has only created $8.01 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 199.94M 223.21M 160.10M 184.87M 112.51M
divided by
Invested Capital 2.13B 2.45B 2.61B 2.21B 1.60B
Cash ROIC 9.40% 9.10% 6.14% 8.38% 7.02%

Very Poor Return on Equity over the past 5 years

ICON has shown an inability to deliver results for shareholders. This could be due to poor management, ICON operating in a highly competitive industry, or having a weak business in general.

ICON has generated a $11.08 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 123.51M 142.59M 167.43M -188.93M -249.51M
divided by
Stockholders' Equity 1.19B 984.77M 921.60M 591.03M 375.35M
Return on Equity 10.41% 14.48% 18.17% -31.97% -66.47%

Excellent Business Performance over the past 10 years

ICON has been able to maintain profitability in good times and bad. This could mean ICON has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

ICON has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 83.34M 81.54M 114.85M 162.53M 173.80M 199.94M 223.21M 160.10M 184.87M 112.51M

Weak Balance Sheet

ICON's financial position is not ideal. The key is to check whether ICON is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 53.27M 67.28M 201.54M 121.94M 181.79M 255.03M 278.79M 128.02M 169.97M 149.41M
Current Assets 95.87M 130.36M 280.65M 225.87M 284.51M 366.35M 476.63M 385.27M 369.80M 444.14M
Total Assets 1.34B 1.42B 1.80B 1.95B 2.16B 2.48B 2.86B 2.87B 2.52B 2.01B
Current Liabilities 76.41M 103.19M 132.50M 99.96M 362.78M 100.61M 127.86M 137.13M 145.92M 254.07M
Total Liabilities 808.21M 806.73M 893.46M 915.11M 972.25M 1.30B 1.88B 1.95B 1.93B 1.63B
Stockholder' Equity 527.92M 613.53M 909.15M 1.04B 1.19B 1.19B 984.77M 921.60M 591.03M 375.35M
Current Ratio 1.25 1.26 2.12 2.26 0.78 3.64 3.73 2.81 2.53 1.75
TL-to-TA 0.60 0.57 0.50 0.47 0.45 0.52 0.66 0.68 0.77 0.81

Consistent Reinvestment of Profits over the past 10 years

ICON has consistently retained profits. This may put ICON 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, ICON can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 60.94M 131.09M 195.47M 294.32M 420.42M 529.83M 657.88M 809.42M 514.76M 254.92M
Retained Earnings Growth - 115.12% 49.11% 50.57% 42.85% 26.02% 24.17% 23.04% -36.40% -50.48%

Inconsistent Net Profit Margins over the past 10 years

ICON potentially has a competitive advantage, however inconsistent profit margins are a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$15.50 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 63.76M 70.15M 75.11M 98.85M 126.11M 123.51M 142.59M 167.43M -188.93M -249.51M
divided by
Revenue 160.00M 216.76M 232.06M 332.56M 369.85M 353.82M 432.63M 461.24M 379.20M 368.46M
Net Profit Margin 39.85% 32.36% 32.37% 29.72% 34.10% 34.91% 32.96% 36.30% -49.82% -67.72%

Strong Pricing Power over the past 10 years

ICON has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$100.00 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 160.00M 216.76M 232.06M 332.56M 369.85M 353.82M 432.63M 461.24M 379.20M 368.46M
divided by
Revenue 160.00M 216.76M 232.06M 332.56M 369.85M 353.82M 432.63M 461.24M 379.20M 368.46M
Gross Margin 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Low Capital Intensity over the past 10 years

ICON has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that ICON may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

4.11% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 349,000.00 7.70M 3.87M 3.19M 3.81M 2.23M 9.58M 2.42M 5.37M 9.66M
divided by
Net Income 63.76M 70.15M 75.11M 98.85M 126.11M 123.51M 142.59M 167.43M -188.93M -249.51M
Capital Expenditure Ratio 0.55% 10.98% 5.16% 3.23% 3.02% 1.80% 6.72% 1.45% -2.84% -3.87%

No Dividend History over the past 10 years

ICON has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 61.43M 61.25M 68.33M 74.71M 75.50M 71.96M 60.73M 57.37M 48.29M 52.34M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 19.99 9.20 12.75 19.64 16.29 21.85 39.88 33.93 6.18 9.34
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

ICON 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 December
2007200820092010201120122013201420152016
Shares Outstanding 61.43M 61.25M 68.33M 74.71M 75.50M 71.96M 60.73M 57.37M 48.29M 52.34M
Stock Bought Back - 0.29% -10.36% -8.55% -1.04% 4.92% 18.48% 5.87% 18.79% -7.73%
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Discussion
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2
Posted by pbanik  (on January 21, 2016)

Posted by pbanik (1 hour ago)
(ICON)http://finance.yahoo.com/q/ks?s=ICON+Key+Statistics has a total debt to equity ratio of greater than 100, plus their P/E ratio is > 3, so I would be careful but if you look at their profile they have recognizable brands under their portfolio.
- See more at: http://www.vuru.co/analysis/ICON/discussion#sthash.8CJbdbSv.dpuf
1
Posted by burchill.doug  (on November 11, 2015)
To start a new company implies a $55/share value; however, the following must be considered:

Very high CEO compensation history
The CEO/chairman, COO and CFO quits
SEC investigation for accounting issues at the beginning of 2015 Significant lowering of earnings guidance
Decline of men’s brands

Maybe a good company for an upcoming buy-out.