Canada Goose Holdings Inc (GOOS, Financial) has experienced a notable shift in its stock performance over recent months. With a current market capitalization of $1.26 billion, the premium outerwear company's stock price stands at $13.01. Despite a slight dip of 1.93% over the past week, the stock has seen an impressive gain of 18.77% over the past three months. This growth is particularly striking when considering the company's GF Value, which is currently at $27.69, suggesting that the stock is significantly undervalued. This valuation is a decrease from the past GF Value of $38.82, yet the stock remains categorized as significantly undervalued both currently and in the past valuation.
Introduction to Canada Goose Holdings Inc
Canada Goose Holdings Inc, operating in the Manufacturing - Apparel & Accessories industry, is renowned for its high-quality outerwear designed for extreme weather conditions. The company's business model encompasses design, manufacturing, distribution, and retail, with a strong presence across Canada, the United States, Asia, Europe, and other global markets. The Direct to Consumer (DTC) segment, which includes sales through e-commerce platforms and company-owned retail stores, is a primary revenue driver, while the Wholesale segment caters to a diverse range of retailers and international distributors.
Assessing Profitability
Canada Goose's financial health is reflected in its Profitability Rank of 8/10, indicating a strong position within the industry. The company's Operating Margin stands at 8.42%, surpassing 72.43% of 1,041 companies in the same realm. Its ROE (Return on Equity) is at 12.07%, higher than 77.18% of its peers, while the ROA (Return on Assets) at 3.17% and ROIC (Return on Invested Capital) at 6.65% also demonstrate the company's ability to generate profits relative to its assets and capital. With nine years of profitability over the past decade, Canada Goose showcases a consistent performance that is better than 72.79% of 1,062 companies in the industry.
Growth Trajectory of Canada Goose
The company's growth prospects are equally impressive, with a Growth Rank of 10/10. The 3-Year Revenue Growth Rate per Share is at 10.20%, outperforming 70.93% of 1,008 companies, and the 5-Year Revenue Growth Rate per Share at 14.50% is better than 88.25% of 953 companies. The estimated Total Revenue Growth Rate for the next 3 to 5 years is an exceptional 19.51%, surpassing 96.97% of 66 companies. However, the 3-Year EPS without NRI Growth Rate shows a decline of 6.60%, and the 5-Year EPS without NRI Growth Rate is at -0.30%, indicating some challenges in earnings growth.
Investor Confidence and Shareholder Analysis
Investor confidence in Canada Goose is exemplified by the holdings of top investors such as Baillie Gifford (Trades, Portfolio), which holds 119,221 shares, representing a 0.12% share percentage. This stake by a reputable investment firm underscores the market's belief in the company's potential and strategic direction.
Competitive Landscape
When compared to its competitors, Canada Goose stands out with a significantly higher market cap of $1.26 billion. In contrast, iFabric Corp (TSX:IFA, Financial) has a market cap of $21.377 million, Unisync Corp (TSX:UNI, Financial) at $16.802 million, and Gildan Activewear Inc (TSX:GIL, Financial) at $5.89 billion. This comparison highlights Canada Goose's substantial market presence and competitive edge within the apparel and accessories manufacturing industry.
Conclusion: A Robust Market Contender
In summary, Canada Goose Holdings Inc's recent stock price rally is underpinned by its strong market position, consistent profitability, and promising growth prospects. Despite short-term fluctuations, the company's significantly undervalued status according to GF Value suggests potential for future appreciation. The confidence of major shareholders and the company's competitive standing in the industry further reinforce the positive outlook for Canada Goose as a robust market contender.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
