Will Genesco (NYSE:GCO) latest volatility spike continue?

Macroaxis Story

31% of stocks are less volatile than Genesco, and above 83% of all equities are expected to generate higher returns over the next 60 days. As many old-fashioned traders are trying to avoid consumer cyclical space, it makes sense to outline Genesco a little further and try to understand its current volatility patterns. We will inspect how risky is to take a position in Genesco at this time. Genesco's seemingly stabilizing volatility may still impact the value of the stock as we estimate Genesco as currently fairly valued. The real value, based on our calculations, is getting close to 48.91 per share.

Published over a year ago

View all stories for Genesco | View All Stories

Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Michael Smolkin

Genesco has roughly 115.06 M in cash with 165.67 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 7.68.

Will Genesco (NYSE:GCO) latest volatility spike continue?

Volatility is a rate at which the price of Genesco or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Genesco may increase or decrease. In other words, similar to Genesco's beta indicator, it measures the risk of Genesco and helps estimate the fluctuations that may happen in a short period of time. So if prices of Genesco fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

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. Financial leverage can amplify the potential profits to Genesco's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Genesco's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Genesco's total debt and its cash.

Genesco Gross Profit

Genesco Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Genesco 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 Genesco Gross Profit growth over the last 10 years. Please check Genesco's gross profit and other fundamental indicators for more details.

Genesco Volatility Drivers

Genesco unsystematic risk is unique to Genesco and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Genesco you can also buy Citi Trends. You can also mitigate this risk by investing in the consumer discretionary sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Genesco important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Genesco income statement and balance sheet. Here are more details about Genesco volatility.

	Total Assets	Net Debt	Total Liab	Common Stock	Good Will	Capital Stock	Total Revenue	Gross Profit	Net Income	Tax Provision	Ptb Ratio	Pb Ratio	Ev To Sales	Payout Ratio	Pfcf Ratio	Pe Ratio	Current Ratio	Graham Number	Ebt Per Ebit	Quick Ratio	Cash Ratio	Debt Ratio	Market Cap
Total Assets		0.13	0.71	0.66	0.24	-0.07	0.79	0.77	0.34	-0.14	-0.84	-0.84	-0.15	-0.78	-0.38	-0.34	-0.68	0.56	-0.13	-0.86	-0.84	0.1	0.92
Net Debt	0.13		0.69	-0.36	-0.72	-0.88	-0.34	-0.36	-0.2	-0.68	-0.32	-0.32	-0.62	0.0	-0.32	-0.57	-0.22	-0.21	-0.58	-0.13	-0.23	-0.25	-0.13
Total Liab	0.71	0.69		0.05	-0.34	-0.55	0.19	0.16	0.13	-0.51	-0.69	-0.69	-0.62	-0.37	-0.43	-0.71	-0.51	0.01	-0.6	-0.53	-0.62	-0.1	0.49
Common Stock	0.66	-0.36	0.05		0.57	0.27	0.81	0.83	0.29	0.15	-0.48	-0.48	0.39	-0.91	0.08	0.29	-0.31	0.93	0.37	-0.79	-0.68	-0.06	0.8
Good Will	0.24	-0.72	-0.34	0.57		0.78	0.52	0.55	0.62	0.73	0.2	0.2	0.71	-0.25	0.39	0.63	0.17	0.44	0.65	-0.07	0.04	0.19	0.35
Capital Stock	-0.07	-0.88	-0.55	0.27	0.78		0.26	0.28	0.17	0.61	0.4	0.4	0.74	0.1	0.31	0.65	0.22	0.16	0.7	0.23	0.35	0.43	0.15
Total Revenue	0.79	-0.34	0.19	0.81	0.52	0.26		1.0	0.36	0.25	-0.64	-0.64	0.21	-0.76	-0.24	0.02	-0.56	0.71	0.21	-0.78	-0.68	0.22	0.85
Gross Profit	0.77	-0.36	0.16	0.83	0.55	0.28	1.0		0.39	0.29	-0.61	-0.61	0.24	-0.77	-0.19	0.06	-0.52	0.73	0.24	-0.77	-0.67	0.2	0.85
Net Income	0.34	-0.2	0.13	0.29	0.62	0.17	0.36	0.39		0.69	0.02	0.02	0.14	-0.23	0.29	0.13	0.15	0.16	0.08	-0.12	-0.14	-0.15	0.28
Tax Provision	-0.14	-0.68	-0.51	0.15	0.73	0.61	0.25	0.29	0.69		0.45	0.45	0.6	0.11	0.41	0.58	0.35	0.1	0.54	0.27	0.34	0.17	-0.03
Ptb Ratio	-0.84	-0.32	-0.69	-0.48	0.2	0.4	-0.64	-0.61	0.02	0.45		1.0	0.43	0.71	0.67	0.6	0.87	-0.45	0.37	0.9	0.89	-0.1	-0.76
Pb Ratio	-0.84	-0.32	-0.69	-0.48	0.2	0.4	-0.64	-0.61	0.02	0.45	1.0		0.43	0.71	0.67	0.6	0.87	-0.45	0.37	0.9	0.89	-0.1	-0.76
Ev To Sales	-0.15	-0.62	-0.62	0.39	0.71	0.74	0.21	0.24	0.14	0.6	0.43	0.43		-0.04	0.32	0.96	0.2	0.5	0.99	0.14	0.36	0.4	0.02
Payout Ratio	-0.78	0.0	-0.37	-0.91	-0.25	0.1	-0.76	-0.77	-0.23	0.11	0.71	0.71	-0.04		0.05	0.05	0.43	-0.85	-0.03	0.94	0.91	0.24	-0.86
Pfcf Ratio	-0.38	-0.32	-0.43	0.08	0.39	0.31	-0.24	-0.19	0.29	0.41	0.67	0.67	0.32	0.05		0.5	0.91	-0.05	0.17	0.37	0.27	-0.64	-0.23
Pe Ratio	-0.34	-0.57	-0.71	0.29	0.63	0.65	0.02	0.06	0.13	0.58	0.6	0.6	0.96	0.05	0.5		0.42	0.41	0.93	0.28	0.46	0.19	-0.16
Current Ratio	-0.68	-0.22	-0.51	-0.31	0.17	0.22	-0.56	-0.52	0.15	0.35	0.87	0.87	0.2	0.43	0.91	0.42		-0.39	0.08	0.7	0.58	-0.55	-0.58
Graham Number	0.56	-0.21	0.01	0.93	0.44	0.16	0.71	0.73	0.16	0.1	-0.45	-0.45	0.5	-0.85	-0.05	0.41	-0.39		0.52	-0.76	-0.59	0.08	0.68
Ebt Per Ebit	-0.13	-0.58	-0.6	0.37	0.65	0.7	0.21	0.24	0.08	0.54	0.37	0.37	0.99	-0.03	0.17	0.93	0.08	0.52		0.11	0.35	0.51	0.02
Quick Ratio	-0.86	-0.13	-0.53	-0.79	-0.07	0.23	-0.78	-0.77	-0.12	0.27	0.9	0.9	0.14	0.94	0.37	0.28	0.7	-0.76	0.11		0.96	0.05	-0.88
Cash Ratio	-0.84	-0.23	-0.62	-0.68	0.04	0.35	-0.68	-0.67	-0.14	0.34	0.89	0.89	0.36	0.91	0.27	0.46	0.58	-0.59	0.35	0.96		0.27	-0.84
Debt Ratio	0.1	-0.25	-0.1	-0.06	0.19	0.43	0.22	0.2	-0.15	0.17	-0.1	-0.1	0.4	0.24	-0.64	0.19	-0.55	0.08	0.51	0.05	0.27		0.08
Market Cap	0.92	-0.13	0.49	0.8	0.35	0.15	0.85	0.85	0.28	-0.03	-0.76	-0.76	0.02	-0.86	-0.23	-0.16	-0.58	0.68	0.02	-0.88	-0.84	0.08

Click cells to compare fundamentals

Is Genesco valued appropriately by the market?

Genesco reported the last year's revenue of 1.83 B. Reported Net Loss for the year was (110.56 M) with profit before taxes, overhead, and interest of 1.06 B.

Will Genesco pull back in April 2021?

The maximum drawdown is down to 17.31 as of today.

As of the 11th of March 2021, Genesco retains the Risk Adjusted Performance of 0.1865, market risk adjusted performance of 0.3854, and Downside Deviation of 3.26. Genesco technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to break down nineteen technical drivers for Genesco, which can be compared to its competitors. Please check out Genesco jensen alpha, as well as the relationship between the potential upside and skewness to decide if Genesco is priced fairly, providing market reflects its last-minute price of 50.87 per share. Given that Genesco has jensen alpha of 0.5922, we strongly advise you to confirm Genesco's regular market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Genesco

Whereas some companies under the apparel retail industry are still a bit expensive, Genesco may offer a potential longer-term growth to institutional investors. All things considered, as of the 11th of March 2021, our analysis shows that Genesco hyperactively responds to market trends. The company is fairly valued and projects below average odds of financial distress for the next 2 years. Our ongoing 30 days buy-sell recommendation on the company is Strong Buy.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce. 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 Rifka Kats do not own shares of Genesco. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2024 Macroaxis LLC