Genesco Story

<div class='circular--portrait' style='background:#4E8BFC;color: #ffffff;font-size:3em;'>GCO</div>
GCO -- USA Stock  

USD 38.27  0.66  1.70%

The underlying goal of this short thesis is to outline Genesco as an investment oportunity for January. We will inspect why recent Genesco price moves suggest a bounce in January.
Published over a month ago
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Are Genesco (NYSE:GCO) institutional investors starting to hold back?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Genesco has an asset utilization ratio of 122.63 percent. This suggests that the company is making $1.23 for each dollar of assets. An increasing asset utilization means that Genesco is more efficient with each dollar of assets it utilizes for everyday operations. When we forecast the price of Genesco, we are not concerned with any of Genesco fundamentals. We simply determine the future price of Genesco stock based solely on the trends of the past price. We use techniques such as the exponential moving average (EMA), oscillators, momentum and volume indicators, and others. Technical analysis is rather used for short-term strategies than the long-term ones. Our analysis's main assumption is that everything significant aboutGenesco is already priced into the stock.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Genesco. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Genesco

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Genesco's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Genesco in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Genesco. Your research has to be compared to or analyzed against Genesco's peers to derive any actionable benefits. When done correctly, Genesco's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Genesco.

How important is Genesco's Liquidity

Genesco financial leverage refers to using borrowed capital as a funding source to finance Genesco ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Genesco financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Genesco's total debt and its cash.

How Genesco utilizes its cash?

To perform a cash flow analysis of Genesco, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Genesco is receiving and how much cash it distributes out in a given period. The Genesco cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Genesco Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 188.11 Million

Sale by Thurgood Marshall of 2000 shares of Genesco

Legal trades by Genesco insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Genesco insider trading alert for sale of common stock by Thurgood Marshall, the corporate stakeholder, on 13th of January 2021. This event was filed by Genesco Inc with SEC on 2021-01-13. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another Deeper Perspective

Genesco shows above-average downside volatility for the selected time horizon. We advise investors to inspect Genesco further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Genesco future alpha.

Margin Breakdown

Operating Margin5.07
EBITDA Margin0.0747
Gross Margin0.51
Profit Margin0.0326

Possible January come-back of Genesco?

The variance is down to 26.77 as of today. Genesco shows above-average downside volatility for the selected time horizon. We advise investors to inspect Genesco further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Genesco future alpha.

Our Conclusion on Genesco

Whereas some other firms under the apparel retail industry are still a bit expensive, Genesco may offer a potential longer-term growth to institutional investors. The inconsistency in the assessment between current Genesco valuation and our trade advice on Genesco is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Genesco.

About Contributor

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 Raphi Shpitalnik do not own shares of Genesco. Please refer to our Terms of Use for any information regarding our disclosure principles.

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