Canada Goose Holdings Inc. (GOOS:TSX) Analysts rate as a Buy

STA Research
by: STA Research
Canada Goose Holdings Inc.

Based on the Canada Goose Holdings Inc. stock (goos stock price TSX) forecasts from 8 analysts, the average analyst target price for Canada Goose Holdings Inc. (goos stock price TSX) is CAD 43.21 over the next 12 months. Canada Goose Holdings Inc.’s (goos stock price TSX) average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Canada Goose Holdings Inc. is Slightly Bullish, based on 9 positives and 6 negative signals. At the last closing, Canada Goose Holdings Inc.’s stock price was CAD 22.91. Canada Goose Holdings Inc.’s (goos stock price TSX) stock price has changed by -0.77% over the past week, -0.21% over the past month and -54.21% over the last year.

Canada Goose Holdings Inc. creates, produces, and markets performance luxury clothing for men, women, young adults, kids, and infants throughout North America, South America, Asia Pacific, Europe, the Middle East, and Africa. Direct-to-Consumer, Wholesale, and Other are the three business segments that the company operates. Toronto, Canada serves as the company’s headquarters. It was established in 1957.

 

What we like:

High market capitalization

This 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 a 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 a 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 a better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on a free cash flow basis

The 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

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

High Gross Profit to Asset Ratio

This 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 to its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility

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

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price-to-book value basis.

Overpriced on a cash flow basis

The stock 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 buying.

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 news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on a free cash flow basis

The 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 buying.

Disclaimer

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