ICON  Iconix Brand Group Inc.

Exchange

NASDAQ

Sector

Consumer Non-Durables

Industry

Shoe Manufacturing

Market Cap.

392.01M

Vuru Grade

63.17/100

Current Price

$6.87
+0.20 (+3.00%)

Growth Price

$24.29
Undervalued by 253.59%

Company Metrics

  • P/E 4.14
  • P/S 1.06
  • P/B 1.02
  • EPS -5.07
  • Cash ROIC 8.01%
  • Cash Ratio 0.59
  • Dividend 0 / 0%
  • Avg. Vol. 613,079.00
  • Shares 57.06M
  • Market Cap. 392.01M

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 Acquires 100% Ownership of Iconix Canada
PR Newswire (press release) - Jul 20, 2017
NEW YORK, July 20, 2017 /PRNewswire/ -- Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company"), today announced that it has bought back the remaining 50% interest in Iconix Canada from its joint venture partner for $19 million, subject to ...
Iconix (ICON) Acquires Remaining 50% Stake in Iconix Canada - Nasdaq
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 Inc (NASDAQ:ICON) reported earnings of $0.21 per share ... - Market Exclusive
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.
Iconix: Win Big, Lose Small
Seeking Alpha - Jun 27, 2017
I think these steps indicate potential for the company's future prospects, but the key variable is whether management can drive organic growth in the remaining brands. To that end, I believe Iconix's intrinsic value is determined by a binary situation ...
Iconix Reduces Debt by $362 Million and Completes the Sale of the ...
PR Newswire (press release) - Jul 3, 2017
NEW YORK, July 3, 2017 /PRNewswire/ -- Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company"), today announced a substantial reduction of its debt in conjunction with the completion of the previously reported sale of its entertainment ...
Iconix pays down debt after Peanuts sale - Seeking Alpha
Iconix Pays Off $362 Million Debt After Sale of Peanuts & Strawberry Shortcake ... - Footwear News
Iconix Brand Group, Inc. (NASDAQ:ICON) Experiences Light Trading Volume
First News 24 - 12 hours ago
Iconix Brand Group, Inc. shares had a trading volume of 20K in the last trading session. Trading volume was down 97.18% under the stocks average daily volume.
Iconix Brand Group Inc. - Receive News & Ratings Daily - The Cerbat Gem
Parametric Portfolio Associates LLC Acquires 47144 Shares of Iconix Brand ... - Sports Perspectives
Traders Are Following Iconix Brand Group Inc (ICON)'s Technical Levels
Hayden Business Journal - 10 hours ago
Iconix Brand Group Inc (ICON) currently has a 14-day Commodity Channel Index (CCI) of 77.78. Dedicated investors may choose to use this technical indicator as a stock evaluation tool.
Price Alert: Iconix Brand Group Inc (NASDAQ:ICON) Stock Nears Resistance ...
CML News - Jul 23, 2017
Price Alert: Iconix Brand Group Inc (NASDAQ:ICON) has now crossed into technical strength -- watch the technical oscillators for momentum gaps.
Iconix Brand Group, Inc. (ICON) Stake Increased by New York State Teachers ...
Week Herald - Jul 24, 2017
Iconix Brand Group logo New York State Teachers Retirement System increased its stake in shares of Iconix Brand Group, Inc. (NASDAQ:ICON) by 3.9% during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor ...
Iconix Brand Group, Inc. (ICON) Downgraded by BidaskClub - BNB Daily (blog)
Breaking Down: Iconix Brand Group Inc (NASDAQ:ICON) Stock Drop Below Support ...
CML News - Jul 14, 2017
Iconix Brand Group Inc has a one bull (extreme weakness) technical rating because it's trading below the 10 day, 50 day and 200 day simple moving averages while the 10-day moving average is below the 50-day moving average and the 50-day moving ...
Iconix Brand Group (ICON) Getting Somewhat Favorable Media Coverage, Analysis ... - The Cerbat Gem
Analysts Are Gushing Over CenturyLink, Inc. (CTL), Iconix Brand Group, Inc. (ICON) - Post Analyst
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.

$6.87 Current Price

$24.29 Growth Price (DCF)

Undervalued by 253.59%


Growth Rate Assumed by Market: -113.28%


Future Free Cash Flow Growth Rate: 8.4%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$10.29 Book Price

Undervalued by 49.71%


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.