Movado is OVERVALUED at 14.44 per share with modest projections ahead. Movado appears to be somewhat reliable, given 1 month investment horizon.
Movado Group has Sharpe Ratio of 0.19, which conveys that the firm had 0.19% of return per unit of risk over the last month. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock specific
technical indicators that cannot be
diversified away. By analyzing
Movado Group technical indicators you can presently evaluate if the expected return of 0.74% is justified by implied risk. Please exercise Movado Group Downside Deviation of 4.13,
mean deviation of 2.92, and Risk Adjusted Performance of 0.2525 to check out if our risk estimates are consistent with your expectations.
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 Movado income statement, its balance sheet, and the statement of cash flows. Potential Movado investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Movado investors may use each financial statement separately, they are all related. The changes in Movado's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Movado'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 Movado
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Movado performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Movado shares is the value that is considered the true value of the share. If
the intrinsic value of Movado 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 Movado. Please read more on our
fundamental analysis page.
How effective is Movado in utilizing its assets?
Movado Group reports assets on its Balance Sheet. It represents the amount of Movado resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Movado 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 Movado volatility, please check the breakdown of all its
fundamentals.
Are Movado Earnings Expected to grow?
The
future earnings power of Movado involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Movado factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Movado
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 Movado
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Movado earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Movado dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Movado one year expected dividend income is about USD1.27 per share.
Dividends Paid is likely to climb to about 55.8
M in 2024.
Dividend Yield is likely to climb to 0.09 in 2024.
Investing in dividend-paying stocks, such as Movado Group is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Movado must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Movado. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Movado Gross Profit
Movado Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Movado 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 Movado Gross Profit growth over the last 10 years. Please check Movado's
gross profit and other
fundamental indicators for more details.
A Deeper look at Movado
Institutional investor usually refers to an organization that invests money in Movado on behalf of clients or other money managers. Buying and selling of large positions of Movado stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Movado stock. Let's take a look at how the ownership of Movado is distributed among investors.
Ownership Allocation
Movado Group maintains a total of sixteen million five hundred seventy thousand
outstanding shares. The majority of Movado
outstanding shares are owned by
institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Movado Group to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Movado Group. Please pay attention to any change in the institutional holdings of Movado as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.
| Retail Investors | 3.19 |
| Insiders | 4.06 |
| Institutions | 92.75 |
| 2017 | 2018 | 2019 | 2020 (projected) |
Interest Expense | 1.51 M | 771 K | 930 K | 1.07 M | Gross Profit | 298.08 M | 369.36 M | 374.89 M | 363.21 M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Movado has an asset utilization ratio of 141.9 percent. This indicates that the company is making $1.42 for each dollar of assets. An increasing asset utilization means that Movado Group is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets507.4 M | Assets Non Current413 M | | |
| Current Assets | 507.44 Million | 46.0 |
| Assets Non Current | 412.97 Million | 37.43 |
| Goodwill | 158.9 Million | 14.4 |
| Tax Assets | 23.92 Million | 2.17 |
Are Movado technical ratios showing a throwback?
Kurtosis is down to 2.67. It may cause a possible volatility fall. Movado Group shows above-average downside volatility for the selected time horizon. We advise investors to inspect Movado Group further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Movado future alpha.
Our Final Takeaway
While some companies under the luxury goods industry are still a bit expensive, Movado may offer a potential longer-term growth to sophisticated investors. To conclude, as of the 24th of November 2020, we believe Movado is currently
overvalued. It actively responds to the market and projects
low chance of distress in the next two years. However, our ongoing 30 days 'Buy-Sell' recommendation on the venture is
Buy.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Movado Group. Please refer to our
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