- 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.
For further details see:
Fossil: Weak Revenues And Too Many Competitors