Being in the retail space is difficult and not only is it difficult with accessories, it is even more difficult because this company has to maintain their trendy designs. This can shift greatly because peoples desires change and Fossil needs to maintain their status in the upper middle class.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Fossil income statement, its balance sheet, and the statement of cash flows. Potential Fossil investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Fossil investors may use each financial statement separately, they are all related. The changes in Fossil's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Fossil's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Fossil
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Fossil performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Fossil shares is the value that is considered the true value of the share. If
the intrinsic value of Fossil is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Fossil. Please read more on our
fundamental analysis page.
Watch out for price decline
Please consider monitoring Fossil on a daily basis if you are holding a position in it. Fossil is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Fossil stock to be traded above the $1 level to remain listed. If Fossil stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How effective is Fossil in utilizing its assets?
Fossil Group reports assets on its Balance Sheet. It represents the amount of Fossil resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Fossil aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Apparel, Accessories & Luxury Goods space. To get a better handle on how balance sheet or income statements item affect Fossil volatility, please check the breakdown of all its
fundamentals.
Are Fossil Earnings Expected to grow?
The
future earnings power of Fossil involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Fossil factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Fossil
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Fossil
expected earnings.
Fossil Gross Profit
Fossil Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Fossil previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Fossil Gross Profit growth over the last 10 years. Please check Fossil's
gross profit and other
fundamental indicators for more details.
Another Deeper Perspective
To compare Fossil to the Tiffany & Co’s of the world may not be accurate because these two are in separate leagues. When you go to compare competitors, you can look at areas such as market cap, products and services being sold, and/or fundamental data in terms of ratios and growth.
There are different ways to attempt to gain exposure to this market and the first is to invest directly in the company itself. When you invest in the company, you are taking on not only the macro risk, but the company specific risk as well. Be sure to understand fully what the impacts may be on your portfolio and go from there.
An alternative investment option would be look for funds that include Fossil as a decent portion of the portfolio. This will still allow you to have exposure to the retail sector as a whole, but it will eliminate most of the company specific risks if you were to invest in the company by itself.
Fossil continues to be a company that stands its ground, selling and providing us with fashionable accessories. Be sure to look at the company’s financials and fundamental health to fully understand where the company may be headed. Fossil may have some value, but only you can determine that depending on your current investment portfolio.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Fossil Group. Please refer to our
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