Brown Shoe Company, Inc. ($BWS) Cautious Buy or Hold to $28 Confident Investor Rating: Fair

Company name Brown Shoe Company, Inc.
Stock ticker BWS
Live stock price [stckqut]BWS[/stckqut]
P/E compared to competitors Good


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


Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $34.52
Target stock price (averages with growth) $31.14
Target stock price (averages with no growth) $21.84
Target stock price (manual assumptions) $31.31

The following company description is from Google Finance:

Brown Shoe Company, Inc. is a global footwear retailer and wholesaler. The Company’s activities include the operation of retail shoe stores and e-commerce Websites, as well as the sourcing and marketing of footwear for women and men. During the fiscal year ended January 28, 2012 (fiscal 2011), categories of its consolidated net sales were approximately 63% women’s footwear, 24% men’s footwear, 9% children’s footwear and 4% accessories. Approximately 66% of fiscal 2011, footwear sales represented retail sales, including sales through its e-commerce Websites. Brown Shoe’s retail operations at January 28, 2012, included 1,323 retail shoe stores. In June 2010, Brown Shoe acquired the remaining 50% interest in Edelman Shoe, Inc., a designer and marketer of fashion footwear. In October 2011, the Company sold AND 1 to Galaxy International. In May 2013, the Company sold Avia and Nevados.


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.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $22.3

Growth: 0.18

Current EPS (TTM): $1.16

P/E: 19

Future EPS Calc: $2.65

Future Stock Price Calc: $50.42

Target stock price: $31.3

I hope that this makes you a better investor. [/s2If]

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