Movado Group Inc (NYSE: MOV)

Sector: Consumer Cyclical Industry: Luxury Goods CIK: 0000072573
Market Cap 878.09 Mn
P/B 1.90
P/E 1,242.00
P/S 1.44
ROIC (Qtr) 2.98
Div Yield % 4.07
Rev 1y % (Qtr) 3.11
Total Debt (Qtr) 83.07 Mn
Debt/Equity (Qtr) 0.17
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About

Movado Group Inc., commonly referred to as Movado Group, is a prominent player in the design, manufacturing, and distribution of quality watches and jewelry. The company's operations span across over 100 countries, and its shares are publicly traded on the New York Stock Exchange (NYSE) under the ticker symbol MOV. Movado Group's primary business activities encompass designing, sourcing, marketing, and distributing a diverse range of products under its owned and licensed brands. These brands include Movado, Concord, EBEL, Olivia Burton, MVMT, Coach,...

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Investment thesis

Bull case

  • Strong operating cash flow of 40.39M provides robust 0.49x coverage of total debt 83.07M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 183.88M provide 9.11x coverage of short-term debt 20.19M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 40.39M provides exceptional 168.29x coverage of minority interest expenses 240000, showing strong core operations.
  • Operating cash flow of 40.39M provides exceptional 85.21x coverage of interest expenses 474000, showing strong debt service capability.
  • Operating cash flow of 40.39M provides strong 11.41x coverage of stock compensation 3.54M, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 40.39M barely covers its investment activities of (8.12M), with a coverage ratio of -4.98, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 40.39M provides thin coverage of dividend payments of (31.06M) with a -1.30 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating cash flow of 40.39M is outpaced by equity issuance of (2.07M) (-19.53 ratio), indicating concerning reliance on equity markets for funding operations.
  • Tangible assets of 747.44M provide limited backing for working capital of 393.32M, which is 1.90x, suggesting increased operational risk in market downturns.
  • R&D investment of 0 represents just 0x of SG&A expenses of 329.69M, indicating potential underinvestment in innovation relative to administrative overhead.

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Luxury Goods
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TPR Tapestry, Inc. 29.76 Bn 56.98 3.96 3.94 Bn
2 SIG Signet Jewelers Ltd 4.18 Bn 28.80 0.61 1.15 Bn
3 CPRI Capri Holdings Ltd 2.40 Bn -4.76 0.65 1.31 Bn
4 REAL TheRealReal, Inc. 1.22 Bn -17.03 1.84 0.47 Bn
5 LUXE LuxExperience B.V. 0.92 Bn 1.60 0.38 0.22 Bn
6 MOV Movado Group Inc 0.88 Bn 1,242.00 1.44 0.08 Bn
7 ELA Envela Corp 0.34 Bn 33.05 1.61 0.02 Bn
8 LANV Lanvin Group Holdings Ltd 0.18 Bn -0.84 0.52 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.93 1.99
EV to Cash from Ops. EV/CFO 10.18 -20.65
EV to Debt EV to Debt 8.44 5.26
EV to EBIT EV/EBIT 11.72 -18.61
EV to EBITDA EV/EBITDA 9.54 3.85
EV to Free Cash Flow [EV/FCF] EV/FCF 11.68 -11.08
EV to Market Cap EV to Market Cap 0.80 2.01
EV to Revenue EV/Rev 1.15 1.66
Price to Book Value [P/B] P/B 1.90 8.26
Price to Earnings [P/E] P/E 1,242.00 103.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.67 0.46
Dividend Payout Ratio % Div Payout % (Qtr) 152.20 -92.20
Dividend per Basic Share Div per Share (Qtr) 1.40 0.37
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 88.22 13.15
Interest Coverage Int. cover (Qtr) 60.70 65.47
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 35.84 19.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1.28 324.42
Dividend Growth (1y) % Div 1y % (Qtr) -20.00 -2.57
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 20.57 113.88
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 18.97 358.60
EBIT Growth (1y) % EBIT 1y % (Qtr) 16.51 105.68
EBT Growth (1y) % EBT 1y % (Qtr) 17.00 83.10
EPS Growth (1y) % EPS 1y % (Qtr) 19.48 121.00
FCF Growth (1y) % FCF 1y % (Qtr) 69.46 -35.68
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2.17 16.54
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.87 1.29
Cash Payout Ratio Cash Payout (Qtr) 0.68 0.10
Cash Ratio Cash Ratio (Qtr) 1.43 0.83
Current Ratio Curr Ratio (Qtr) 4.06 2.29
Debt to Equity Ratio Debt/Equity (Qtr) 0.17 1.37
Interest Cover Ratio Int Coverage (Qtr) 60.70 65.47
Times Interest Earned Times Interest Earned (Qtr) 60.70 65.47
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.80 2.90
EBIT Margin % EBIT Margin % (Qtr) 4.40 -0.51
EBT Margin % EBT Margin % (Qtr) 4.32 -2.94
Gross Margin % Gross Margin % (Qtr) 53.90 48.43
Net Profit Margin % Net Margin % (Qtr) 3.20 -4.98