Guess’, Inc. [GES] is following downward trend in the market concluded with the last trading session. The shares of the Services sector company has a current value of $14.11 after GES shares went down by -2.22% during the last trading session. One of the reasons why Services stocks may go bearish is decreased momentum in the press.

Guess’, Inc. [NYSE:GES]: Analyst Rating and Earnings

Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding Guess’, Inc. [GES] currently, the latest Wall Street ratings we can see is from the fiscal quarter that’s going to end in January. On average, stock market experts give GES an Outperform rating. Its stock price has been found in the range of 14.13 to 26.95. This is compared to its latest closing price of $14.43.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Guess’, Inc. [GES] is sitting at 2.20. This is compared to 1 month ago, when its average rating was 2.20.

For the quarter ending in Apr-19 Guess’, Inc. [GES] generated $0.54 billion in sales. That’s 0.02% lower than the average estimate of $0.54 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.

Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Wed 4 Sep (In 82 Days).

Fundamental Analysis of Guess’, Inc. [GES]

Now let’s turn to look at profitability: with a current Operating Margin for Guess’, Inc. [GES] sitting at +4.27 and its Gross Margin at +36.27, this company’s Net Margin is now -0.30%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 11.85, and its Return on Invested Capital has reached 3.30%. Its Return on Equity is 1.52, and its Return on Assets is 0.81. These metrics suggest that this Guess’, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, Guess’, Inc. [GES] has generated a Total Debt to Total Equity ratio of 4.70. Similarly, its Total Debt to Total Capital is 4.49, while its Total Debt to Total Assets stands at 2.38. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 4.18, and its Long-Term Debt to Total Capital is 3.99. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.

What about valuation? This company’s Enterprise Value to EBITDA is 4.80 and its Total Debt to EBITDA Value is 0.22. The Enterprise Value to Sales for this firm is now 0.33, and its Total Debt to Enterprise Value stands at 0.03. Guess’, Inc. [GES] has a Price to Book Ratio of 1.85, a Price to Cash Flow Ratio of 19.01 and P/E Ratio of 92.89. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.

Shifting the focus to workforce efficiency, Guess’, Inc. [GES] earns $166,223 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 8.97 and its Total Asset Turnover is 1.58. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.14 and its Current Ratio is 2.00. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.

Guess’, Inc. [GES] has 77.93M shares outstanding, amounting to a total market cap of $1.10B. Its stock price has been found in the range of 14.13 to 26.95. At its current price, it has moved down by -47.64% from its 52-week high, and it has moved down -0.14% from its 52-week low.

This stock’s Beta value is currently 0.44, which indicates that it is 5.30% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 27.20. This stock, according to these metrics, is currently Oversold.

Conclusion: Is Guess’, Inc. [GES] a Reliable Buy?

Guess’, Inc. [GES] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.