Columbia Sportswear Co (COLM) stock analysis

P/E below its 5-year median

Columbia Sportswear's P/E of 15.8 is below its own 5-year median of 17.1.

P/E below the industry

Columbia Sportswear's P/E of 15.8 is below the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 21.3.

EV/EBITDA below its 5-year median

Columbia Sportswear's EV/EBITDA of 9.8 is below its 5-year median of 11.4.

P/B above the industry

Columbia Sportswear's price-to-book of 2.26 is above the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 1.49.

Trading below fair value

The share price of $72.19 is below our fair value estimate of $82.79.

Margin of safety under 20%

The price is 12.8% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -0.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -13.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 27.9% over the last twelve months, against a 5-year average of 10.4% a year.

Growing slower than the industry

Revenue grew 0.1% over the last twelve months; the Apparel and Other Finished Products Made from Fabrics and Similar Materials median is 2.3%.

Guidance lowered

Columbia Sportswear lowered its full year 2026 Effective income tax rate outlook on Oct 29, 2026.

Gross margin improving

Gross margin was 52.1% over the last twelve months, against 50.4% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 16.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Columbia Sportswear's return on equity of 14.5% is above the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 8.3%.

Earnings grew over 5 years

Net income grew 10.4% a year on average over the last five fiscal years.

Net margin against its history

Needs five years of revenue and net income.

Net margin above the industry

Columbia Sportswear's net margin of 7.0% is above the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 2.8%.

No debt

Columbia Sportswear 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

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 2.60 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.83; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Columbia Sportswear paid dividends worth 1.7% of the share price over the last twelve months.

Yield below Treasuries

The 1.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Columbia Sportswear yields 1.7%.

Dividend was cut

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

Covered by earnings

Dividends take 26.1% of net income.

Covered by free cash flow

Dividends take 22.6% of free cash flow.