Home Sectors Consumer Cyclical Stock to Watch: Movado Group (NYSE: MOV)

Stock to Watch: Movado Group (NYSE: MOV)

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Movado Group is part of the retail apparel and specialty industry and trades as part of the consumer cyclical sector. The company CEO is Efraim Grinberg. Movado Group Inc designs, sources, markets and distributes fine watches. Its brands include Coach Watches, Concord, Ebel, ESQ Movado, Scuderia Ferrari Watches, HUGO BOSS Watches, Juicy Couture Watches, Lacoste Watches, Movado, and Tommy Hilfiger Watches.

Previous Intraday Trading Performance:

The MOV stock showed a previous change of 5.36% with an open at 25.27 and a close of 26.35. It reached an intraday high of 26.36 and a low of 25.01.

SeekingAlpha:  Movado Group, Inc. (MOV) CEO Efraim Grinberg on Q1 2020 Results – Earnings Call Transcript

Liquidity:

The stock has a market cap of $607.4m with 23.0m shares outstanding, of which the float is 22.2m shares. Trading volume reached 200,101 shares compared to its average volume of 241,771 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Movado Group shares returned 5.78% and in the past 30 trading days it returned -25.07%. Over three months, it changed -23.23%. In one year it has changed -47.78% and within that year its 52-week high was 52.10 and its 52-week low was 24.48. MOV stock is 7.65% above its 52 Week Low.

Our calculations show a 200 day moving average of 35.04 and a 50 day moving average of 32.10. Currently MOV stock is trading -24.79% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Movado reiterated FY2020 guidance, shares down 6% on earnings miss

Earnings:

The last annual fiscal EPS for the company was reported at 2.62 that ended on 31st of January 2019, which according to the previous close, that is a PE of 10.06. Based on 2 analyst estimates, the consensus EPS for the next quarter is 0.12. The TTM EPS is 2.36, which comes to a TTM PE of 11.17.

Below was the last reported quarterly diluted earnings per share:

Apr19 (Reported on 05/30/2019): 0.17
Jan19 (Reported on 03/28/2019): 0.74
Oct18 (Reported on 12/04/2018): 1.14
Jul18 (Reported on 08/29/2018): 0.39
Apr18 (Reported on 05/30/2018): 0.35

The dividend per share is currently 0.80, which is a dividend yield of 3.04%. Also, the payout ratio is 33.90%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 60.08, which means it is possibly undervalued and has a margin of safety of 56.14%.

Indicators to Watch:

Short-interest was 1,655,733, which was 7.18% of shares outstanding. The short-interest ratio or days-to-cover ratio was 7.56. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 0.42.

SeekingAlpha:  Movado EPS misses by $0.07, misses on revenue

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 12.52%, return on assets is 8.22%, profit margin is 8.14%, price-to-sales is 0.82 and price-to-book is 1.18.

Company Scores:

All scores are out of six:
 5  :Valuation Score
 0  :Past Performance Score
 5  :Financial Strength Score
 2  :Future Growth Score
 2  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.