Analysts rate Canada Goose Holdings Inc. (GOOS:TSX) with a Buy rating and a CAD 36 target

STA Research
by: STA Research
Canada Goose Holdings Inc.

Based on the Canada Goose Holdings stock forecast from 8 analysts, the average analyst GOOS stock price target is CAD 36.73 over the next 12 months. Canada Goose Holdings Inc’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Canada Goose stock is Neutral, which is based on 9 positive signals and 8 negative signals. At the last closing, Canada Goose stock price was CAD 24.64Canada Goose stock price has changed by +0.98% over the past week, -1.31% over the past month and -48.85% over the last year.

About Canada Goose Holdings Inc. (GOOS:TSX):

Canada Goose Holdings Inc. designs, manufactures, and sells performance luxury apparel for men, women, youth, children, and babies in Canada, the United States, Asia Pacific, Europe, the Middle East, Africa, and Latin America. The company operates through three segments: Direct-to-Consumer, Wholesale, and Other. It offers parkas, lightweight down jackets, rainwear, windwear, knitwear, footwear, and accessories for fall, winter, and spring seasons. As of April 3, 2022, the company operated through its 56 national e-commerce markets and 41 directly operated retail stores in North America, Europe, and Asia Pacific. It also sells its products through wholesale partners and distributors. The company was founded in 1957 and is headquartered in Toronto, Canada.

 

What we like:

High market capitalization:

GOOS stock TSX is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior return on equity:

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

GOOS stock TSX had positive total cash flow in the most recent four quarters.

Positive free cash flow:

GOOS stock TSX had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis:

GOOS stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Revenue Growth:

GOOS stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio:

GOOS stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Poor risk adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility:

The total returns for GOOS stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median dividend returns:

The company’s average income yield of GOOS stock over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings:

Canada Goose stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

Canada Goose stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

Canada Goose stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the GOOS stock TSX news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis:

GOOS stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Disclaimer

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