ZEPP - Fossil: Weak Revenues And Too Many Competitors

• Until 2015, the company was in perfect health and managed to achieve growing revenues year after year, but as of today, the situation has completely changed.
• It is likely that Fossil has neglected the development of new technology smartwatches in recent years and today finds itself lagging behind competitors.
• Fossil often tends to overestimate its future prospects and achievements in its annual reports, and this reduces management's credibility.
• Using a discounted cash flow, its fair value is $6.05 per share, so Fossil is overvalued since it is currently trading at $7.15 per share.

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