Columbia Sportswear Stock Intrinsic Value – Columbia Sportswear Reports Second Quarter Earnings for FY2023
August 7, 2023
🌥️Earnings Overview
On August 1 2023, COLUMBIA SPORTSWEAR ($NASDAQ:COLM) announced the financial results for the second quarter of FY2023, ending June 30 2023. The company’s total revenue rose 7.4% year-over-year to USD 620.9 million and net income increased 16.6%, reaching USD 8.4 million.
Market Price
The company’s stock opened at $78.1 and closed at $77.3, down by 1.7% from the prior closing price of 78.6. The company attributed the decrease in profit and sales to fewer customers visiting COLUMBIA SPORTSWEAR stores due to the ongoing pandemic, as well as lower sales of apparel and accessories as a result of the pandemic.
However, despite the decrease in sales, COLUMBIA SPORTSWEAR’s e-commerce business increased significantly, accounting for a larger portion of total sales. Looking ahead, COLUMBIA SPORTSWEAR is optimistic that their financial performance will improve in the coming months as pandemic conditions permit a return to more normal operational conditions. They remain committed to serving customers with quality products while continuing to seek out innovative ways to drive growth and profitability. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Columbia Sportswear. More…
| Total Revenues | Net Income | Net Margin |
| 3.57k | 291.99 | 9.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Columbia Sportswear. More…
| Operations | Investing | Financing |
| 97.14 | -119.06 | -150.71 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Columbia Sportswear. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.79k | 915.15 | 31.4 |
Key Ratios Snapshot
Some of the financial key ratios for Columbia Sportswear are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.1% | 22.2% | 11.2% |
| FCF Margin | ROE | ROA |
| 1.3% | 12.8% | 8.9% |
Analysis – Columbia Sportswear Stock Intrinsic Value
At GoodWhale, we analyze the fundamentals of COLUMBIA SPORTSWEAR, to assess the true value of the company. After thorough analysis, we have determined that the intrinsic value of each COLUMBIA SPORTSWEAR share is around $107.1. This was calculated by our proprietary Valuation Line. As of now, COLUMBIA SPORTSWEAR stock is traded at $77.3 – a significant undervaluation of 27.9%. More…
Peers
In the outdoor apparel industry, there is intense competition between Columbia Sportswear Co and its major competitors, Canada Goose Holdings Inc, Makalot Industrial Co Ltd, and Deckers Outdoor Corp. Each company is constantly trying to outdo the others in terms of product innovation, marketing, and sales. This competition is good for consumers because it drives down prices and forces the companies to continuously improve their products.
– Canada Goose Holdings Inc ($TSX:GOOS)
Canad Goose Holdings Inc is a Canada-based holding company of Goose International, Inc. (Goose International). The Company is engaged in the design, manufacture, marketing and distribution of outerwear for men, women and children. Its products include parkas, jackets, shell systems, vests, knitwear, footwear and accessories. The Company’s products are sold under various trademarks, including CANADA GOOSE, GOOSE PERSONAL CARE and EXPEDITION, among others. The Company offers products through a network of domestic and international retailers and distributors. It also operates e-commerce Websites in Canada, the United States, Europe, Asia and Japan. The Company has operations in Toronto, Winnipeg, New York, London, Munich, Shanghai and Tokyo.
– Makalot Industrial Co Ltd ($TWSE:1477)
Makalot Industrial Co Ltd is a Taiwanese company that manufactures and sells garments. It has a market cap of 46.68B as of 2022 and a ROE of 19.7%. The company has over 10,000 employees and operates in Taiwan, China, Vietnam, and the Philippines.
– Deckers Outdoor Corp ($NYSE:DECK)
Deckers Outdoor Corp is a footwear company that designs, manufactures, and markets a range of footwear products for men, women, and children under a number of brands, including UGG®, Koolaburra®, Hoka One One®, Teva®, and Sanuk®. The company has a market cap of 9.64B as of 2022 and a Return on Equity of 23.34%.
Summary
Investors in COLUMBIA SPORTSWEAR have seen promising results for the second quarter of the 2023 fiscal year. Total revenue rose 7.4% year-over-year to USD 620.9 million, with a corresponding 16.6% increase in net income to USD 8.4 million. These figures demonstrate the company’s strong financial performance, and are likely to encourage confidence among shareholders. Going forward, COLUMBIA SPORTSWEAR’s focus on product innovation and customer satisfaction should continue to drive further growth.
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