Genesco Inc. engages in the retail and wholesale of footwear, apparel, and accessories. The company operates in five segments: Journeys Group, Schuh Group, Lids Sports Group, Johnston & Murphy Group, and Licensed Brands. The company was founded in 1924 and is based in Nashville, Tennessee.
GCO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for GCO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Genesco Inc ranked in the 78th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 414.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Genesco Inc ended up being:
19% of the company's capital comes from equity, which is greater than just 10.03% of stocks in our cash flow based forecasting set.
Genesco Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.01. This coverage rate is greater than that of only 18.25% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Genesco Inc experienced a tax rate of about 100% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 97.69% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Genesco Inc? See THRM, MDCA, GPI, DISCA, and UAA.