Mystery Stock #2
~$7B · US apparel brand
Figures as of October 8, 2026 · not live
Five numbers from a real company's filings, name hidden. Call each one green, yellow or red, give your verdict, and then see who it is — and how Stocky and everyone else called it.
1. Earnings Yield
7.9%
Each $100 of share price buys $7.92 of the last twelve months' profit. A safe bond pays roughly $4-5.
Apparel Manufacturing median: 3.5% (10 companies)
2. Return on Capital
59.6%
Operating profit for a year, against the money tied up in running the business (working capital plus property and equipment).
Apparel Manufacturing median: 30.2% (9 companies)
3. Acquirer's Multiple
10.2x
Buying the whole company — debt included, cash netted off — costs 10.2 years of its operating profit.
Competitors: PVH (PVH CORP.) 14.0x · TPR (Tapestry, Inc.) 13.4x
4. FS-Score
7/10
Ten pass/fail checks of profitability, balance-sheet strength and whether the business is improving.
Current Profitability: 2/3
Stability: 3/3
Recent Operational Improvements: 2/4
5. Intrinsic Value (DCF)
-10.3%
A 10-year cash-flow model puts fair value 10.3% below today's price.
Assumes free cash flow grows 3.0% a year for 10 years, then 3.0% forever, discounted at 12.0%.
Revenue growth: last FY +4.1% · 5-yr avg +7.1%/yr
Free cash flow: FY2023 $121.9M · FY2024 $670.9M · FY2025 $308.2M
Your verdict
Knowing only these five numbers, what would you do?
Past mysteries · Educational only. No investment advice.