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Stock impact report

1 Cash-Heavy Stock to Own for Decades and 2 We Ignore [Yahoo! Finance]

Movado Group Inc. (MOV) 
Last movado group inc. earnings: 3/26 06:45 am Check Earnings Report
US:NYSE Investor Relations: movadogroup.com/investor/index.cfm
Company Research Source: Yahoo! Finance
Just because a business has cash doesn't mean it's a good investment. Luckily, StockStory is here to help you separate the winners from the losers. That said, here is one company with a net cash position that can continue growing sustainably and two with hidden risks. Net Cash Position: $102 million (21.1% of Market Cap) With its watches displayed in 20 museums around the world, Movado (NYSE:MOV) is a watchmaking company with a portfolio of watch brands and accessories. Why Do We Pass on MOV? Sales trends were unexciting over the last five years as its 4.7% annual growth was below the typical consumer discretionary company Poor free cash flow margin of 4.3% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions Movado is trading at $21.83 per share, or 13.2x forward P/E. R Show less Read more
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