Fossil Inc ($FOSL) Cautious Buy or Hold to $132 Confident Investor Rating: Fair

Company name Fossil Inc
Stock ticker FOSL
Live stock price [stckqut]FOSL[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $144.55
Target stock price (averages with growth) $185.72
Target stock price (averages with no growth) $134.61
Target stock price (manual assumptions) $138.5

The following company description is from Google Finance: http://www.google.com/finance?q=fosl

Fossil, Inc. a global designer, marketer and distributer company that specializes in consumer fashion accessories. The Company’s offerings include a line of men's and women's fashion watches and jewelry, handbags, small leather goods, belts, sunglasses, soft accessories and clothing. Its products are distributed globally through various distribution channels, including wholesale in countries where it has a physical presence, direct to the consumer through its retail stores and commercial websites and through third-party distributors in countries where the Company do not maintain a physical presence. It operates in four different segments: the North America Wholesale segment, the Europe Wholesale segment, Asia Pacific Wholesale segment and the Direct to Consumer segment. Effective April 2, 2012, it acquired Skagen Designs, Ltd. and certain of its international affiliates. On December 31, 2012, the Company purchased substantially all of the assets of Bentrani Watches, LLC (Bentrani).

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. The biggest reason that the company dropped to Fair is due to its lack of growth of P/E and that is less concerning to me than other indicators. I am leaving the company on my Watch List.

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