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:
We started the process of determining a valid price forecast for Genesco Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Genesco Inc ranked in the 90th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1686.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for GCO, they are:
30% of the company's capital comes from equity, which is greater than just 14% of stocks in our cash flow based forecasting set.
Genesco Inc's weighted average cost of capital (WACC) is 5%; for context, that number is higher than just 0.42% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 0% of stocks in its sector (Consumer Cyclical).
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 FORK, GTN, SGC, SKY, and MSGN.
Genesco Inc. (NYSE: GCO) today announced that the Company will report results for the first quarter fiscal 2021 on June 9, 2020, before the market opens, and hold its quarterly earnings conference call at 7:30 a.m. (central) the same day.
Publicly traded Nashville companies Genesco Inc. and SmileDirectClub are temporarily cutting their workforces in response to COVID-19. SmileDirectClub is furloughing “much” of its corporate and retail workers through May 3, according to a news release. The company declined to provide the number of employees furloughed when reached for comment.