Genesco, Inc., based in Nashville, Tennessee, designs, markets, and distributes footwear, apparel, and accessories, employing 13,300 people. The firm operates through four segments, including Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands Group, covering various retail and e-commerce operations.
Based on our analysis, Genesco Inc. receives a strong undervalued rating of 5 out of 5 stars from Cashu, primarily due to its Price to Book (P/B) ratio, which stands at 0.56. This is significantly lower than the sector average of 2.04. The P/B ratio is a fundamental measure used to compare a stock's market value to its book value. A lower P/B ratio can indicate that a stock is undervalued relative to its assets.
Another critical aspect is the Return on Equity (ROE) ratio, where Genesco Inc. shows a value of -2.95 compared to the sector average of 0.57. Although this indicates a negative return, it is essential to consider this in the context of broader market and economic conditions that may have temporarily impacted the company's earnings.
Furthermore, the company's Return on Assets (ROA) ratio is -1.27, in contrast to the sector's -0.30. This ratio measures how effectively a company can turn assets into profit, and while negative, it suggests areas where operational efficiencies can be improved relative to the sector.
Despite these challenges, the low P/B ratio is a key indicator suggesting that the market may undervalue the company's asset value, presenting a potential opportunity for investors. Genesco Inc.'s financial metrics should be viewed as part of an ongoing analysis to understand the company's full financial health and market position.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Consumer Discretionary
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