By Rob Otman
Movado Group stock had a calm day in the market on Monday April 2. Shares moved 0.26% and closed the day at $38.5. They’re now trading 8.88% below their 52-week high of $42.25.
With yesterday’s slight gain, Movado Group now has a market cap of $884 million. That makes it a small cap company.
The business operates in the jewelry industry and employs 1,000 people. Its shares trade primarily on the New York stock exchange.
Movado Group has 16.3 million shares outstanding and 277,811 traded hands for the day. That’s above the average 30-day volume of 150,928 shares. The amount of Movado Group stock is also dropping as the company buys back its own shares. In the last 12 months, it repurchased $4 million worth.
Over the last five years, Movado Group’s revenue is up by 18.08%. You can see this growth in annual revenue chart below…
In the last year alone, Movado Group’s revenue has dropped by -7.09%. That’s not a good sign for Movado Group stock owners.
We like to invest in companies that grow their sales. A growing top line is a sign of a healthy business.
For now, Movado Group will continue to pull in revenue. So let’s take a closer look at the company’s total financial health. And the best way to do that is by looking at its balance sheet… Movado Group’s cash comes in at $215 million and the company’s debt is $25 million…
Movado Group’s cash pile is larger than its total debt. This and a steady cash flow has allowed the company to buy back shares.
What is Movado Group Stock Worth?
Let’s look at a few key ratios to determine the value of Movado Group stock…
Price-to-Earnings (P/E): This ratio comes in at 19.16 for Movado Group. That’s a reasonable level. A high P/E ratio shows that investors are already expecting high earnings growth.
Price-to-Book (P/B): This ratio is a cornerstone for value investors. A lower number here indicates a better value play. And at 1.88, Movado Group looks reasonable… but P/B varies greatly based on the industry.
These two metrics are a great place to start when valuing a company… but your analysis should go much deeper…
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Source:: Investment You
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