Movado Group Inc (MOVAA) stock analysis

P/E above its 5-year median

Movado's P/E of 17.3 is above its own 5-year median of 14.2.

P/E below the industry

Movado's P/E of 17.3 is below the Measuring, Analyzing, and Controlling Instruments; Photographic, Medical and Optical Goods; Watches and Clocks median of 31.6.

EV/EBITDA above its 5-year median

Movado's EV/EBITDA of 8.6 is above its 5-year median of 5.9.

P/B below the industry

Movado's price-to-book of 1.38 is below the Measuring, Analyzing, and Controlling Instruments; Photographic, Medical and Optical Goods; Watches and Clocks median of 3.07.

Trading below fair value

The share price of $31.21 is below our fair value estimate of $38.42.

Margin of safety under 20%

The price is 18.8% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -3.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -33.3% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 5.2% over the last twelve months; the Measuring, Analyzing, and Controlling Instruments; Photographic, Medical and Optical Goods; Watches and Clocks median is 8.6%.

Guidance issued

The latest outlook (second half of fiscal 2027 gross margin, Aug 26, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 56.1% over the last twelve months, against 54.0% a year earlier.

Return on equity under 15%

Return on equity was 8.3% over the last twelve months and averaged 11.2% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 12.6%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Movado's return on equity of 8.3% is above the Measuring, Analyzing, and Controlling Instruments; Photographic, Medical and Optical Goods; Watches and Clocks median of -18.2%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 6.0% over the last twelve months, against a 5-year average of 7.5%.

Net margin above the industry

Movado's net margin of 6.0% is above the Measuring, Analyzing, and Controlling Instruments; Photographic, Medical and Optical Goods; Watches and Clocks median of -10.2%.

No debt

Movado has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

Operating income covers interest expense 95.6 times.

Short-term assets cover short-term debts

Current assets are 4.26 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.40; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Movado paid dividends worth 4.8% of the share price over the last twelve months.

Yield above Treasuries

The 4.8% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 4.0% or more; Movado yields 4.8%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 7 fiscal years.

Covered by earnings

Dividends take 77.7% of net income.

Covered by free cash flow

Dividends take 45.0% of free cash flow.