Shares of fashion conglomerate PVH (PVH, Financial) fell 6.11% today after the company reported second-quarter earnings results.
The earnings forecast for the next quarter missed Wall Street's expectations. Sales growth was also underwhelming during the quarter, with revenue roughly in line with analysts' estimates, though EPS beat by a more convincing margin. Overall, this was a weaker quarter for the company.
PVH Corp (PVH, Financial) saw its stock price drop to $98.075. The company's stock has a price-to-earnings (P/E) ratio of 7.77, which is close to its 1-year low of 8.39, indicating that it might be undervalued compared to its historical P/E levels. Additionally, the price-to-book (P/B) ratio stands at 1.09, suggesting the stock could be trading at a fair value relative to its book value.
On the brighter side, PVH enjoys a high Piotroski F-Score of 8, indicating a very healthy financial situation. The Beneish M-Score is -2.74, implying that the company is unlikely to be a manipulator. Moreover, PVH Corp has been recognized as "Fairly Valued" with a GF Value of $93.68.
However, there are some warning signs. PVH's Altman Z-Score is 2.57, placing it in the grey area, which implies the company might be under some kind of financial stress. Additionally, the company's return on invested capital (ROIC) is less than the weighted average cost of capital (WACC), suggesting it might not be entirely capital efficient.
The company has a market capitalization of $5.48 billion and an enterprise value of $8.77 billion. Despite the recent decline, the stock still has a substantial institutional ownership of 99.96%, which could indicate confidence from large investors.
Overall, while PVH (PVH, Financial) has demonstrated strong financial health and fair valuation metrics, the weaker quarterly performance and missed earnings forecast for the next quarter have raised concerns among investors, leading to the recent drop in stock price.
