Shares of PVH Corp. (PVH, Financial) have seen a significant drop recently, with the stock price currently at $85.44, representing a decrease of 2.11%. This movement comes amid ongoing trade discussions between the U.S. and China, which have provided a mixed outlook for companies with significant exposure to the Chinese market, like PVH.
PVH, known for its renowned brands such as Calvin Klein and Tommy Hilfiger, has a substantial part of its operations tied to the Chinese market. The company generates 6% of its revenue and 20% of its operating income from China. Despite a temporary pause in retaliatory tariffs by both nations, PVH remains on China's "unreliable entities" list, impacting its operations and stock performance.
In terms of stock analysis, PVH (PVH, Financial) exhibits a price-to-earnings (P/E) ratio of 8.09, which is below the industry standard, suggesting the stock is undervalued. Moreover, its price-to-book (P/B) ratio of 0.89 indicates that the stock might be trading below the company's intrinsic value. The GF Value for PVH is estimated at $94.07, classifying it as fairly valued. For more details, visit the GF Value page for PVH.
PVH's financial strength appears solid, with a Beneish M-Score of -2.49, implying that it is unlikely to be a manipulator. However, financial stress is indicated by an Altman Z-Score of 2.29, which places the company in a grey area. Concerns are also raised by PVH's return on invested capital (ROIC) being below its weighted average cost of capital (WACC), suggesting inefficiencies in capital use.
Despite a challenging global environment, PVH has shown resilience. Its expected earnings per share (EPS) growth indicates a positive outlook, with an estimated forward P/E ratio of 7.09. Investors should monitor progress in U.S.-China trade negotiations closely, as this will significantly impact PVH's future performance.
