Shoe and apparel company Steven Madden (SHOO, Financial) experienced a notable share price decline of 4.65% today, with the stock currently priced at $33.22. The decline was propelled by the release of weaker-than-expected fourth-quarter 2024 results, which failed to meet analysts’ earnings per share (EPS) expectations.
Despite the disappointing EPS and full-year EPS guidance, Steven Madden managed to surpass revenue and EBITDA projections for the quarter. The company remains in good financial health, as indicated by a strong Altman Z-Score of 6.66, suggesting robust financial stability. Additionally, the Beneish M-Score of -2.36 implies that the company is unlikely to be involved in earnings manipulation.
Analyzing the company's valuation, Steven Madden's stock appears modestly undervalued based on its GF Value. The GF Value indicates a value of $46.18, which suggests potential upside from the current price. Investors can explore this valuation further via the GF Value page.
The company's profitability metrics show promise with an operating margin of 10.76% and a return on equity (ROE) of 20.62%, both signaling healthy profitability. Additionally, its price-to-earnings (PE) ratio of 14.14 is close to a one-year low, making it potentially attractive for value investors.
Looking forward, management has expressed concern over macroeconomic challenges, particularly the implications of new tariffs. However, they are optimistic about future growth driven by the anticipated acquisition of Kurt Geiger, which is expected to enhance their market presence and revenue streams.
