G-III Apparel Group’s 8.94 P/E and $3.33 EPS Backed by 92% Institutional Ownership
G-III Apparel Group reported $3.18 billion in sales and $193.6 million in net income, translating to $3.33 EPS and an 8.94 P/E. Institutions hold 92.1% of shares, while analysts assign a 2.14 rating score and foresee 4.8% upside.
1. Institutional and Insider Ownership
G-III Apparel Group reports that 92.1% of its shares are held by institutional investors, reflecting strong confidence from endowments, hedge funds and large money managers. Insiders own 13.0% of the stock, underscoring management’s alignment with shareholder interests. High institutional ownership often correlates with expectations of sustained outperformance and may reduce stock volatility due to stable, long-term positions.
2. Financial Performance and Valuation
For its most recent fiscal year, G-III generated $3.18 billion in revenue and net income of $193.57 million. The company’s earnings per share were $3.33, and it trades at a price/sales ratio of 0.39 and a price/earnings ratio of 8.94. These metrics indicate a relatively low valuation compared with peers in the consumer discretionary sector, suggesting that G-III may offer investors an attractive entry point given its scale and profitability profile.
3. Profitability Metrics
G-III Apparel Group delivered a net margin of 4.89%, return on equity of 9.37% and return on assets of 6.22% in its last reported period. These figures demonstrate efficient operational execution and disciplined cost management across both the Wholesale and Retail segments. Consistent profitability ratios of this magnitude support the company’s ability to fund growth initiatives and return capital to shareholders over time.
4. Analyst Sentiment and Price Target
Among sell-side analysts, G-III has received one Sell rating, four Hold ratings and two Buy ratings, resulting in a consensus rating score of 2.14 on a five-point scale. The average analyst price target stands at $31.20, implying a potential upside of approximately 4.80% from current levels. This modest upside, combined with a neutral to positive consensus, suggests that while the stock may not be a speculative high-flyer, it offers stability and moderate appreciation potential for risk-averse investors.