Canada Goose Holdings Inc. (NYSE: GOOS)

Sector: Consumer Cyclical Industry: Apparel Manufacturing CIK: 0001690511
Market Cap 1.10 Bn
P/B 2.68
P/E 70.51
P/S 1.04
ROIC (Qtr) 6.24
Div Yield % 0.00
Rev 1y % (Qtr) 19.21
Total Debt (Qtr) 546.01 Mn
Debt/Equity (Qtr) 1.33

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 251.38M provide 3.22x coverage of short-term debt 78.19M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 156.38M provides strong 11.07x coverage of stock compensation 14.13M, indicating sustainable incentive practices.
  • Robust free cash flow of 134.42M exceeds capital expenditure of 21.96M by 6.12x, indicating strong organic growth funding capability.
  • Operating cash flow of 156.38M fully covers other non-current liabilities 59.93M by 2.61x, showing strong long-term stability.
  • Tangible assets of 1.16B provide robust 15.32x coverage of other current liabilities 75.51M, indicating strong asset backing.

Bear case

  • Operating cash flow of 156.38M barely covers its investment activities of (21.96M), with a coverage ratio of -7.12, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating earnings of 56.30M show weak coverage of depreciation charges of 93.70M, with a 0.60 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 134.42M represents just -1.51x of debt issuance (89.28M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 93.70M relative to operating cash flow of 156.38M, which is 0.60x suggests significant maintenance capital requirements affecting free cash flow.
  • Operating cash flow of 156.38M shows concerning coverage of minority interest expenses of (942028.99), which is -166x, suggesting complex corporate structure risks.

Peer comparison

Companies in the Apparel Manufacturing
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 RL Ralph Lauren Corp 21.00 Bn 22.86 2.68 2.84 Bn
2 GIL Gildan Activewear Inc. 10.78 Bn 22.68 3.21 1.87 Bn
3 LEVI Levi Strauss & Co 8.14 Bn 14.08 1.30 2.31 Bn
4 VFC V F Corp 7.97 Bn 35.68 0.83 5.34 Bn
5 PVH Pvh Corp. /De/ 4.70 Bn 10.38 0.52 4.26 Bn
6 COLM Columbia Sportswear Co 4.28 Bn 33.91 1.69 0.48 Bn
7 KTB Kontoor Brands, Inc. 3.79 Bn 48.22 1.57 1.50 Bn
8 UAA Under Armour, Inc. 3.22 Bn -6.20 0.65 1.69 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.86 1.00
EV to Cash from Ops. EV/CFO 7.15 12.51
EV to Debt EV to Debt 2.05 4.24
EV to EBIT EV/EBIT 19.86 7.83
EV to EBITDA EV/EBITDA 7.41 -92.26
EV to Free Cash Flow [EV/FCF] EV/FCF 8.32 14.76
EV to Market Cap EV to Market Cap 1.02 1.66
EV to Revenue EV/Rev 1.06 1.26
Price to Book Value [P/B] P/B 2.68 -7.01
Price to Earnings [P/E] P/E 70.51 19.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -1.12
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -7.80
Dividend per Basic Share Div per Share (Qtr) 0.00 0.52
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 20.55
Interest Coverage Int. cover (Qtr) 2.03 26.78
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -29.05 -50.55
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 26.92 10.92
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.93
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -55.15 -91.44
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -17.54 -14.51
EBIT Growth (1y) % EBIT 1y % (Qtr) -33.16 -43.47
EBT Growth (1y) % EBT 1y % (Qtr) -54.01 -175.39
EPS Growth (1y) % EPS 1y % (Qtr) -69.39 -217.90
FCF Growth (1y) % FCF 1y % (Qtr) -9.12 -25.41
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 18.56 7.11
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.59 1.16
Cash Payout Ratio Cash Payout Ratio 0.00 0.15
Cash Ratio Cash Ratio (Qtr) 0.71 0.33
Current Ratio Curr Ratio (Qtr) 2.12 2.00
Debt to Equity Ratio Debt/Equity (Qtr) 1.33 -1.70
Interest Cover Ratio Int Coverage (Qtr) 2.03 26.78
Times Interest Earned Times Interest Earned (Qtr) 2.03 26.78
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 14.20 -6.80
EBIT Margin % EBIT Margin % (Qtr) 7.35 -10.74
EBT Margin % EBT Margin % (Qtr) 2.70 -17.49
Gross Margin % Gross Margin % (Qtr) 70.20 49.32
Net Profit Margin % Net Margin % (Qtr) 1.50 -19.24