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%

Genesco is scheduled to announce its earnings today. The next earnings report is expected on the 11th of March 2021. As many baby boomers are still indifferent towards consumer cyclical space, it makes sense to break down Genesco as a potential position. We will evaluate if Genesco shares are reasonably priced given the latest economic outlook.
Published over a month ago
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Our latest take on Genesco (NYSE:GCO) analyst consensus
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.
What is the right price you would pay to acquire a share of Genesco? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Genesco this year

Annual and quarterly reports issued by Genesco are formal financial statements that are published yearly and quarterly and sent to Genesco stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as Genesco often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

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.

Is Genesco a risky opportunity?

Let's check the volatility. Genesco is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Genesco (NYSE:GCO) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. picking up a share of a Genesco stock makes you a part-owner of that company.

Genesco Current Consensus

Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering Genesco. The Genesco consensus assessment is calculated by taking the average estimates from all of the analysts covering Genesco

Buy
1
Hold
2
Strong Buy00.0
Buy133.33
Hold266.67
Sell00.0
Strong Sell00.0

Are Genesco technical ratios showing a collapse?

The jensen alpha is down to 0.72 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.

The Bottom Line

Whereas other entities within the apparel retail industry are still a little expensive, even after the recent corrections, Genesco may offer a potential longer-term growth to institutional investors. On the whole, as of the 4th of December 2020, our final 30 days buy vs. sell advice on the company is Cautious Hold. We believe Genesco is currently overvalued with below average probability of distress for the next two years.

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

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