DESIGNER BRANDS INC-CLASS A (DBI) Stock Fundamental Analysis
NYSE:DBI - New York Stock Exchange, Inc. - US2505651081 - Common Stock
Overall DBI gets a fundamental rating of 3 out of 10. We evaluated DBI against 119 industry peers in the Specialty Retail industry. DBI has a bad profitability rating. Also its financial health evaluation is rather negative. DBI has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year DBI was profitable.
In the past year DBI has reported a negative cash flow from operations.
DBI had positive earnings in 4 of the past 5 years.
Of the past 5 years DBI 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.10%, DBI perfoms like the industry average, outperforming 47.41% of the companies in the same industry.
DBI has a Return On Equity of -0.65%. This is comparable to the rest of the industry: DBI outperforms 53.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.00%, DBI is in line with its industry, outperforming 44.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DBI is below the industry average of 12.38%.
The 3 year average ROIC (8.30%) for DBI is well above the current ROIC(2.00%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.1% | ||
| ROE | -0.65% | ||
| ROIC | 2% |
ROA(3y)5.72%
ROA(5y)-0.75%
ROE(3y)27.71%
ROE(5y)-20.97%
ROIC(3y)8.3%
ROIC(5y)N/A
1.3 Margins
DBI has a Operating Margin of 1.36%. This is comparable to the rest of the industry: DBI outperforms 43.97% of its industry peers.
In the last couple of years the Operating Margin of DBI has declined.
DBI has a Gross Margin of 31.24%. This is in the lower half of the industry: DBI underperforms 61.21% of its industry peers.
In the last couple of years the Gross Margin of DBI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.36% | ||
| PM (TTM) | N/A | ||
| GM | 31.24% |
OM growth 3YN/A
OM growth 5Y-14.17%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y31.55%
GM growth 5Y1.43%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DBI is destroying value.
DBI has less shares outstanding than it did 1 year ago.
DBI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DBI is higher compared to a year ago.
2.2 Solvency
DBI has an Altman-Z score of 1.84. This is not the best score and indicates that DBI is in the grey zone with still only limited risk for bankruptcy at the moment.
DBI's Altman-Z score of 1.84 is on the low side compared to the rest of the industry. DBI is outperformed by 61.21% of its industry peers.
DBI has a Debt/Equity ratio of 1.66. This is a high value indicating a heavy dependency on external financing.
DBI has a Debt to Equity ratio of 1.66. This is in the lower half of the industry: DBI underperforms 67.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.66 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.84 |
ROIC/WACC0.2
WACC10.18%
2.3 Liquidity
A Current Ratio of 1.41 indicates that DBI should not have too much problems paying its short term obligations.
DBI has a Current ratio (1.41) which is comparable to the rest of the industry.
DBI has a Quick Ratio of 1.41. This is a bad value and indicates that DBI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.29, DBI is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
DBI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -67.39%.
Measured over the past years, DBI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.32% on average per year.
DBI shows a decrease in Revenue. In the last year, the revenue decreased by -1.01%.
Measured over the past years, DBI shows a decrease in Revenue. The Revenue has been decreasing by -0.66% on average per year.
EPS 1Y (TTM)-67.39%
EPS 3YN/A
EPS 5Y-18.32%
EPS Q2Q%47.31%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y11.23%
Revenue growth 5Y-0.66%
Sales Q2Q%-1.16%
3.2 Future
DBI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.94% yearly.
Based on estimates for the next years, DBI will show a small growth in Revenue. The Revenue will grow by 1.13% on average per year.
EPS Next Y-64.09%
EPS Next 2Y-1.19%
EPS Next 3Y16.94%
EPS Next 5YN/A
Revenue Next Year-1.58%
Revenue Next 2Y0.31%
Revenue Next 3Y1.13%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.21 indicates a reasonable valuation of DBI.
Compared to the rest of the industry, the Price/Earnings ratio of DBI indicates a rather cheap valuation: DBI is cheaper than 90.52% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, DBI is valued rather cheaply.
A Price/Forward Earnings ratio of 9.43 indicates a reasonable valuation of DBI.
87.93% of the companies in the same industry are more expensive than DBI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.44. DBI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 9.43 |
4.2 Price Multiples
81.03% of the companies in the same industry are more expensive than DBI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.15 |
4.3 Compensation for Growth
A more expensive valuation may be justified as DBI's earnings are expected to grow with 16.94% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.19%
EPS Next 3Y16.94%
5. Dividend
5.1 Amount
DBI has a Yearly Dividend Yield of 3.40%. Purely for dividend investing, there may be better candidates out there.
DBI's Dividend Yield is rather good when compared to the industry average which is at 3.27. DBI pays more dividend than 91.38% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, DBI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
5.2 History
The dividend of DBI decreases each year by -27.55%.
DBI has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of DBI decreased recently.
Dividend Growth(5Y)-27.55%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of DBI are negative and hence is the payout ratio. DBI will probably not be able to sustain this dividend level.
DP-524.77%
EPS Next 2Y-1.19%
EPS Next 3Y16.94%
DESIGNER BRANDS INC-CLASS A
NYSE:DBI (1/22/2025, 1:54:06 PM)
5.525
-0.22 (-3.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners123.15%
Inst Owner Change-0.01%
Ins Owners15.15%
Ins Owner Change-0.38%
Market Cap264.81M
Analysts49.09
Price Target6.12 (10.77%)
Short Float %26.09%
Short Ratio4.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
Yearly Dividend0.2
Dividend Growth(5Y)-27.55%
DP-524.77%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-5.41%
Min Revenue beat(2)-6.36%
Max Revenue beat(2)-4.47%
Revenue beat(4)0
Avg Revenue beat(4)-2.8%
Min Revenue beat(4)-6.36%
Max Revenue beat(4)-0.06%
Revenue beat(8)0
Avg Revenue beat(8)-3.12%
Revenue beat(12)2
Avg Revenue beat(12)-2.25%
Revenue beat(16)4
Avg Revenue beat(16)-1.34%
PT rev (1m)4.35%
PT rev (3m)4.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)38.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-71.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 9.43 | ||
| P/S | 0.09 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.83 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 7.15 |
EPS(TTM)0.6
EY10.86%
EPS(NY)0.59
Fwd EY10.6%
FCF(TTM)-1.66
FCFYN/A
OCF(TTM)-0.58
OCFYN/A
SpS63.64
BVpS6.65
TBVpS2.13
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.1% | ||
| ROE | -0.65% | ||
| ROCE | 2.75% | ||
| ROIC | 2% | ||
| ROICexc | 2.05% | ||
| ROICexgc | 2.4% | ||
| OM | 1.36% | ||
| PM (TTM) | N/A | ||
| GM | 31.24% | ||
| FCFM | N/A |
ROA(3y)5.72%
ROA(5y)-0.75%
ROE(3y)27.71%
ROE(5y)-20.97%
ROIC(3y)8.3%
ROIC(5y)N/A
ROICexc(3y)8.72%
ROICexc(5y)N/A
ROICexgc(3y)9.72%
ROICexgc(5y)N/A
ROCE(3y)11.41%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-20.34%
ROICexc growth 3YN/A
ROICexc growth 5Y-20.52%
OM growth 3YN/A
OM growth 5Y-14.17%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y31.55%
GM growth 5Y1.43%
F-Score3
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.66 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.88 | ||
| Cap/Depr | 77.1% | ||
| Cap/Sales | 1.69% | ||
| Interest Coverage | 0.98 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 1.84 |
F-Score3
WACC10.18%
ROIC/WACC0.2
Cap/Depr(3y)64.38%
Cap/Depr(5y)63.67%
Cap/Sales(3y)1.49%
Cap/Sales(5y)1.62%
Profit Quality(3y)183.06%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-67.39%
EPS 3YN/A
EPS 5Y-18.32%
EPS Q2Q%47.31%
EPS Next Y-64.09%
EPS Next 2Y-1.19%
EPS Next 3Y16.94%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y11.23%
Revenue growth 5Y-0.66%
Sales Q2Q%-1.16%
Revenue Next Year-1.58%
Revenue Next 2Y0.31%
Revenue Next 3Y1.13%
Revenue Next 5YN/A
EBIT growth 1Y-61.49%
EBIT growth 3YN/A
EBIT growth 5Y-14.73%
EBIT Next Year59.09%
EBIT Next 3Y23.38%
EBIT Next 5YN/A
FCF growth 1Y-917.35%
FCF growth 3YN/A
FCF growth 5Y-0.46%
OCF growth 1Y-162.08%
OCF growth 3YN/A
OCF growth 5Y-1.52%