Oxford Industries (OXM, Financial) shares plunged by 7.11% as the company's third-quarter results fell short of analyst expectations. The disappointing performance was mainly due to rising inflation, distractions caused by U.S. elections, global events, and the impact of two major hurricanes that resulted in an estimated $4 million sales reduction and a $0.14 decline in EPS.
Oxford Industries, a well-known apparel company operating under brands like Tommy Bahama and Lilly Pulitzer, experienced a challenging quarter. The company's stock price currently stands at $78.13. Despite the setback, OXM is noted for its strong Altman Z-Score of 3.44, indicating financial strength. Furthermore, the company's Beneish M-Score of -2.77 suggests it is unlikely to be involved in financial manipulation.
The company has been facing a revenue growth slowdown, as evident from its revenue growth of 2.4% over the past year. However, the longer-term revenue growth over the past 3 years stands at 29.8%, showcasing some resilience. On the valuation front, OXM's P/E ratio is currently at 42.93, which may seem high compared to the industry median.
Investors might find OXM's dividend yield of 3.38% appealing, with a strong history of dividend growth, showing a 5-year growth rate of 15.1%. The GF Value indicates that Oxford Industries is "Significantly Undervalued" with a GF Value of $114.96. For further details on the GF Value, [click here](https://www.gurufocus.com/term/gf-value/OXM).
Despite the current headwinds, Oxford Industries maintains a positive cash flow, with a free cash flow per share of $7.42 and a robust interest coverage ratio of 45.11, suggesting effective debt management. It is noteworthy that insider activities have seen more selling than buying recently, with 1,745 shares sold over the past three months without any insider purchases.
Investors should tread cautiously in the short term while keeping an eye on how the company addresses challenges and executes its strategies to enhance shareholder value moving forward.
