Shoe Carnival Story

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SCVL -- USA Stock  

USD 34.41  0.19  0.56%

As many millenniums are trying to avoid consumer cyclical space, it makes sense to summarize Shoe Carnival a little further and try to understand its current market patterns. We will check why this entity may not get much respect from stakeholders given the current market uncertainty. What is the firm valuation so far in 2020? We are going to cover Shoe Carnival perspective on valuation to give investors a better transparency on taking a position in it.
Published over three weeks ago
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Is Shoe Carnival (NASDAQ:SCVL) ready for a correction?
The company currently holds 233.97 M in liabilities with Debt to Equity (D/E) ratio of 0.84, which is about average as compared to similar companies. Shoe Carnival has a current ratio of 2.19, suggesting that it is liquid enough and is able to pay its financial obligations when due. On a scale of 0 to 100, Shoe Carnival holds a performance score of 5. The entity has a beta of 1.673, which indicates a somewhat significant risk relative to the market. Let's try to break down what Shoe Carnival's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Shoe Carnival will likely underperform. Although it is vital to follow Shoe Carnival current price movements, it is good to be conservative about what you can do with the information regarding equity historical returns. The philosophy towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting Shoe Carnival technical indicators, you can presently evaluate if the expected return of 0.32% will be sustainable into the future. Please operates Shoe Carnival value at risk, as well as the relationship between the skewness and day median price to make a quick decision on whether Shoe Carnival existing price patterns will revert.
We determine the current worth of Shoe Carnival using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Shoe Carnival based exclusively on its fundamental and basic technical indicators. By analyzing Shoe Carnival's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Shoe Carnival's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Shoe Carnival. We calculate exposure to Shoe Carnival's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Shoe Carnival's related companies.

Shoe Carnival Investment Alerts

Shoe Carnival investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Shoe Carnival performance across your portfolios.Please check all investment alerts for Shoe Carnival

Shoe Carnival Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Shoe Carnival value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Shoe Carnival competition to find correlations between indicators driving the intrinsic value of Shoe Carnival.

How Shoe Carnival utilizes its cash?

To perform a cash flow analysis of Shoe Carnival, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Shoe Carnival is receiving and how much cash it distributes out in a given period. The Shoe Carnival cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Shoe Carnival Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 65.58 Million

Breaking down Shoe Carnival Indicators

The new hike in Shoe Carnival short term price appreciation created some momentum for stakeholders as it was traded today as low as 30.9 and as high as 33.22 per share. The company executives have successfully maneuvered the company at convenient times to take advantage of all market conditions in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.02. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Shoe Carnival partners.
 2014 2020 (projected)
Calculated Tax Rate21.6231.79
Interest Coverage130.91318.41

Margins Breakdown

Shoe Carnival profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Shoe Carnival itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Shoe Carnival profit margins.
Profit Margin
Operating Margin
Operating Margin5.09
EBITDA Margin7.08
Gross Margin31.16
Profit Margin3.61

Shoe Carnival Earnings Before Interest Taxes and Depreciation Amortization USD is relatively stable at the moment. Further, Shoe Carnival Average Assets is decreasing over the last 5 years. Shoe Carnival Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 6 years. The previous year's value of Shoe Carnival Earnings Before Interest Taxes and Depreciation Amortization USD was 49,727,353. Further, Shoe Carnival Average Assets is relatively stable at the moment.

Shoe Carnival implied volatility may change after the hike

Shoe Carnival new variance upsurges over 15.9. Shoe Carnival shows above-average downside volatility for the selected time horizon. We advise investors to inspect Shoe Carnival further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Shoe Carnival future alpha.

Our Bottom Line On Shoe Carnival

While some firms within the apparel retail industry are still a little expensive, even after the recent corrections, Shoe Carnival may offer a potential longer-term growth to stakeholders. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither pick up new shares of Shoe Carnival nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Shoe Carnival.

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 Achuva Shats do not own shares of Shoe Carnival. Please refer to our Terms of Use for any information regarding our disclosure principles.

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