Monday, July 6, 2015

Analysis of Gerry Weber 2015


Gerry Weber, a German fashion retail chain

Company: Gerry Weber

ISIN DE0003304101 | WKN 330410  

Business: A German fashion retail and accessories company. They currently have four brands for women: Gerry Weber, Taifun, Samoon and (the new addition by acquisition) Hallhuber. Underneath the Gerry Weber brand they have an additional two brands (Gerry Weber Edition and G.W.). They run their own stores but also franchise as well as online and sale of their brands in department stores. 

Active: In over 62 countries. They themselves are running 1000 stores (219 from Hallhuber)

P/E: 13.5


Here you can find the previous analysis of Gerry Weber

contrarian values of P/E, P/B, ROE as well as dividend for Gerry Weber

The P/E of Gerry Weber is excellent with 13.5 (which comes from a dramatic share price drop due to changes forecast for 2015) and the P/B is great with 2.1. Still we end up slightly too high for Graham to show an interest in this company. The earnings to sales are a but low with only 8% and the ROE is ok with 15.7%. The book to debt ratio is excellent with 2.0.
In the last five years they have had a yearly revenue growth rate of 6.5% which is excellent and it gives us a motivated P/E of 17 to 21 which means that Gerry Weber is today undervalued on the market.
They pay a good dividend in the size of 3.6% (but it has not improved in € for the last three years) and it represents 48% of the earnings which is ok. Due to the forecast change I doubt there will be an increase in dividend next year... maybe even the opposite.

Conclusion: Graham says no to Gerry Weber and I am a bit more interested as I always get when there are dramatic changes happening. The P/E, P/B, ROE and dividend are all fully ok and I could  invest in Gerry Weber.

If this analysis is outdated then you can request a new one.

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