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Retail-apparel & accessory stores company · DE · FY ends Feb · Revenue $300M · 3.08% margin · -$1M FCF
$4.85
+$0.24 (+5.21%)
Price from 36 days ago
Operating margin is thin at 3.08%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 2.2%, essentially flat. This is a business that needs a catalyst.
Free cash flow declined 107% versus the prior year, cash generation momentum has weakened. Negative free cash flow of -$1M. The business is consuming cash, not generating it.
9.9x earnings. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$300M
▲ +2.2% YoY
Net Income (TTM)
$6M
▲ +133.5% YoY
Op. Margin
3.08%
▲ +8.9pp YoY
ROIC
3.95%
▲ +11.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$1M
▼ -107.3% YoY
Op. Cash Flow (TTM)
$3M
▼ -86.5% YoY
Net Debt
$122M
Cash & Equiv.
$498K
5Y CAGR: +6.4%
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