ICON  Iconix Brand Group Inc.

Exchange

NASDAQ

Sector

Consumer Non-Durables

Industry

Shoe Manufacturing

Market Cap.

454.64M

Vuru Grade

63.16/100

Current Price

$8.10
-0.49 (-5.70%)

Growth Price

$57.36
Undervalued by 608.15%

Company Metrics

  • P/E 4.14
  • P/S 1.28
  • P/B 0.7
  • EPS -4.32
  • Cash ROIC 8.75%
  • Cash Ratio 1.16
  • Dividend 0 / 0%
  • Avg. Vol. 673,714.00
  • Shares 48.29M
  • Market Cap. 454.64M

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 Announce Fourth Quarter And Full Year 2016 Financial ...
PR Newswire (press release) - Feb 13, 2017
NEW YORK, Feb. 15, 2017 /PRNewswire/ -- Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company"), plans to report its fourth quarter and full year ended December 31, 2016 financial results after the close of market on Wednesday, February 22, ...
Why Iconix Brand Group Inc. Shares Tumbled Today
Motley Fool - Mar 29, 2016
What: Shares of Iconix Brand Group (NASDAQ:ICON) were getting dumped today after a disappointing fourth-quarter earnings report last night.
Iconix Brand Group Reports Financial Results For The Fourth Quarter And Full ... - PR Newswire (press release)
Iconix Brand Group Inc Loses Investor Confidence Amid Top-Line Erosion - Bidness ETC
Why Iconix Brand Group Inc Stock Tumbled Today
Motley Fool - Nov 8, 2016
What happened. Shares of Iconix Brand Group (NASDAQ:ICON) were taking a spill on Tuesday after the fashion-brand holding company lowered its revenue guidance in its third-quarter earnings report. As of 11:00 a.m. EST, the stock was down 9.5%.
Iconix Brand Group (ICON) Q3 2016 Results - Earnings Call Transcript - Seeking Alpha
Iconix Brand Group Reports Financial Results For The Third Quarter 2016 - PR Newswire (press release)
Iconix Brand Group Inc. (ICON) Plunges 5.7% on February 24
Equities.com - 22 hours ago
Iconix Brand Group Inc. (ICON) had a rough trading day for Friday February 24 as shares tumbled 5.7%, or a loss of $-0.49 per share, to close at $8.10.
Iconix Brand Group, Inc. (ICON) Releases Earnings Results, Beats Expectations ... - The Cerbat Gem
The Iconix Brand Group Inc. (ICON) Rating Increased to Hold by The Zacks ... - DailyQuint
Why Iconix Brand Group Inc Stock Soared Today
Motley Fool - Mar 7, 2016
What: Shares of Iconix Brand Group Inc (NASDAQ:ICON) were up 19% as of 11:33 a.m. EST Monday after the company secured a $300 million term loan from Fortress Investment Group.
Iconix Brand Group Announces $300 Million Term Loan - PR Newswire (press release)
Iconix Brand Group Reports Financial Results For The Fourth Quarter & Full ...
PR Newswire (press release) - Feb 22, 2017
Revenue in 2015 included approximately $5.0 million from the Badgley Mischka brand for which there was no comparable revenue in 2016.
Iconix Brand Group's (ICON) CEO John Haugh on Q4 2016 Results - Earnings Call ... - Seeking Alpha
Iconix Brand Group Inc (ICON) Releases Earnings Results, Beats Expectations By ... - Highland Mirror
Iconix Brand Group Announces Hiring Of Jamie Cygielman As Chief Marketing Officer
PR Newswire (press release) - Dec 7, 2016
NEW YORK, Dec. 7, 2016 /PRNewswire/ -- Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company"), today announced that Jamie Cygielman will be joining the Company as Executive Vice President and Chief Marketing Officer on January 3, 2017.
Snoopy and Charlie Brown Are Reportedly on the Auction Block
Fortune - Jan 31, 2017
U.S. brand management company Iconix Brand Group is exploring a sale of its majority stake in Peanuts Worldwide, which owns the rights to cartoon strip characters Snoopy and Charlie Brown, according to people familiar with the matter.
Iconix Brand Group Looks to Dump Charlie Brown, Good Grief! - TheStreet.com
Iconix Brand Group Inc. (ICON) Moves Higher on Volume Spike for January 31 - Equities.com
Bear of the Day: Iconix Brand Group (ICON)
Yahoo Finance - Feb 3, 2017
Iconix Brand Group (ICON) is a Zacks Rank #5 (Strong Sell) and it is the Bear of the Day. Let's take a look at why the stock is the Bear of the Day and if there are some trends that might help investors avoid other stocks that could become a Zacks Rank ...
Iconix Brand Group to Present at ICR Conference 2017
PR Newswire (press release) - Dec 20, 2016
NEW YORK, Dec. 20, 2016 /PRNewswire/ -- Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company"), today announced that its Chief Executive Officer, John Haugh, and its Chief Financial Officer, Dave Jones are scheduled to present at the ICR ...
How Iconix Brand Group, Inc. (NASDAQ:ICON) trades after earning announcements? - The Independent Republic
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.

$8.10 Current Price

$57.36 Growth Price (DCF)

Undervalued by 608.15%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$18.31 Book Price

Undervalued by 126.10%


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 $8.75 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 173.80M 199.94M 223.21M 160.10M 184.87M
divided by
Invested Capital 1.62B 2.13B 2.45B 2.61B 2.21B
Cash ROIC 10.75% 9.40% 9.10% 6.14% 8.38%

Poor Return on Equity over the past 5 years

ICON has shown an inability to deliver strong 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 only generated $4.34 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 126.11M 123.51M 142.59M 167.43M -188.93M
divided by
Stockholders' Equity 1.19B 1.19B 984.77M 921.60M 591.03M
Return on Equity 10.61% 10.41% 14.48% 18.17% -31.97%

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
2006200720082009201020112012201320142015
Free Cash Flow 30.97M 83.34M 81.54M 114.85M 162.53M 173.80M 199.94M 223.21M 160.10M 184.87M

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
2006200720082009201020112012201320142015
Cash 77.84M 53.27M 67.28M 201.54M 121.94M 181.79M 255.03M 278.79M 128.02M 169.97M
Current Assets 99.83M 95.87M 130.36M 280.65M 225.87M 284.51M 366.35M 476.63M 385.27M 369.80M
Total Assets 701.05M 1.34B 1.42B 1.80B 1.95B 2.16B 2.48B 2.86B 2.87B 2.52B
Current Liabilities 35.71M 76.41M 103.19M 132.50M 99.96M 362.78M 100.61M 127.86M 137.13M 145.92M
Total Liabilities 235.60M 808.21M 806.73M 893.46M 915.11M 972.25M 1.30B 1.88B 1.95B 1.93B
Stockholder' Equity 465.46M 527.92M 613.53M 909.15M 1.04B 1.19B 1.19B 984.77M 921.60M 591.03M
Current Ratio 2.80 1.25 1.26 2.12 2.26 0.78 3.64 3.73 2.81 2.53
TL-to-TA 0.34 0.60 0.57 0.50 0.47 0.45 0.52 0.66 0.68 0.77

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
2006200720082009201020112012201320142015
Retained Earnings -2.81M 60.94M 131.09M 195.47M 294.32M 420.42M 529.83M 657.88M 809.42M 514.76M
Retained Earnings Growth - 2,265.64% 115.12% 49.11% 50.57% 42.85% 26.02% 24.17% 23.04% -36.40%

Varying Competitive Advantage over the past 10 years

ICON likely has a competitive advantage which prevents other companies from entering or competing in their industry. However, there is a substantial variation in their Net Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$26.30 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 32.50M 63.76M 70.15M 75.11M 98.85M 126.11M 123.51M 142.59M 167.43M -188.93M
divided by
Revenue 80.69M 160.00M 216.76M 232.06M 332.56M 369.85M 353.82M 432.63M 461.24M 379.20M
Net Profit Margin 40.28% 39.85% 32.36% 32.37% 29.72% 34.10% 34.91% 32.96% 36.30% -49.82%

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
2006200720082009201020112012201320142015
Gross Profit 80.69M 160.00M 216.76M 232.06M 332.56M 369.85M 353.82M 432.63M 461.24M 379.20M
divided by
Revenue 80.69M 160.00M 216.76M 232.06M 332.56M 369.85M 353.82M 432.63M 461.24M 379.20M
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.

3.91% 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
2006200720082009201020112012201320142015
Capital Expenditure 739,000.00 349,000.00 7.70M 3.87M 3.19M 3.81M 2.23M 9.58M 2.42M 5.37M
divided by
Net Income 32.50M 63.76M 70.15M 75.11M 98.85M 126.11M 123.51M 142.59M 167.43M -188.93M
Capital Expenditure Ratio 2.27% 0.55% 10.98% 5.16% 3.23% 3.02% 1.80% 6.72% 1.45% -2.84%

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
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 45.27M 61.43M 61.25M 68.33M 74.71M 75.50M 71.96M 60.73M 57.37M 48.29M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 19.39 19.99 9.20 12.75 19.64 16.29 21.85 39.88 33.93 6.18
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
2006200720082009201020112012201320142015
Shares Outstanding 45.27M 61.43M 61.25M 68.33M 74.71M 75.50M 71.96M 60.73M 57.37M 48.29M
Stock Bought Back - -26.30% 0.29% -10.36% -8.55% -1.04% 4.92% 18.48% 5.87% 18.79%
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Discussion
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1
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.