Last Updated: 16 Sep 2024
Executive Summary
Shoe Carnival Inc. (SCVL) is a leading family footwear retailer in the United States, with a market capitalization of $1.12 billion. The company has been experiencing steady growth in recent quarters, with revenue and earnings both increasing year-over-year. SCVL currently trades at a trailing P/E ratio of 14.58, which is below the industry average. The stock has a strong analyst rating, with two "Buy" recommendations and one "Hold" recommendation.
Company Overview
Shoe Carnival was founded in 1988 and is headquartered in Evansville, Indiana. The company operates over 350 stores in 35 states. SCVL offers a wide variety of footwear for men, women, and children, as well as accessories and apparel. The company's target market is families with children, and it offers a value-oriented pricing strategy.
Fundamental Analysis
SCVL has been reporting strong financial results in recent quarters. In the most recent quarter, the company reported revenue of $123.3 million, an increase of 12.9% year-over-year. Diluted EPS was $2.82, an increase of 15.5% year-over-year. The company's gross profit margin was 38.0%, and its operating margin was 9.0%.
SCVL has a strong balance sheet, with total assets of $468.2 million and total liabilities of $227.6 million. The company has a current ratio of 1.5, which indicates that it has sufficient liquidity to meet its short-term obligations.
Technical Analysis
SCVL is currently trading at $41.66, which is above its 50-day moving average of $40.35 and below its 200-day moving average of $34.04. The stock has been in a bullish trend since early 2023, and it has broken out of a resistance level at $40.00. The stock's relative strength index (RSI) is currently at 60, which indicates that it is overbought.
Short Term Outlook
The technical analysis suggests that SCVL is likely to continue to trend higher in the short term. The stock is above its key moving averages and has broken out of a resistance level. The RSI is overbought, but it is not yet in the overbought zone.
Long Term Outlook
The fundamental analysis suggests that SCVL is a well-run company with a strong balance sheet. The company is benefiting from the tailwinds of the recovering economy and the increasing popularity of online shopping. SCVL is also well-positioned to benefit from the growing demand for value-oriented footwear.
Analyst Recommendations
The majority of analysts have a positive outlook on SCVL. Two analysts have issued "Buy" recommendations, and one analyst has issued a "Hold" recommendation. The average analyst target price is $50.50, which represents a potential upside of 21.3% from the current price.
