MOVMovado Group, Inc.
Is the business good?
The checks split: earnings fully cash-backed (2.0×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 6% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MOV?
Movado Group, Inc. earns 13% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 3.7 points above what the capital costs: growth creates value
- Operating margin
- 6.9%
Operating margin · Luxury Goods median 6.8% · 12 months to Q2 2027
- Cash conversion
- 1.99×
Cash conversion · 1.68× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +2.3%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2021 | −28% |
| FY2022 | 16% |
| FY2023 | 16% |
| FY2024 | 7.3% |
| FY2025 | 3.1% |
| FY2026 | 4.4% |
Details›
- Gross margin12 months to Q2 2027
- 56%
- Operating margin12 months to Q2 2027
- 6.9%
- Net margin12 months to Q2 2027
- 6.0%
- Free cash flow margin
- 10%
- Revenue, trailing twelve months
- $690M
- Free cash flow, trailing twelve months
- $71M
- Net income, trailing twelve months
- $41M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 13%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.