DILLARDS INC-CL A (DDS) Stock Fundamental Analysis
NYSE:DDS - New York Stock Exchange, Inc. - US2540671011 - Common Stock - Currency: USD
Overall DDS gets a fundamental rating of 6 out of 10. We evaluated DDS against 28 industry peers in the Broadline Retail industry. DDS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DDS 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 DDS was profitable.
DDS had a positive operating cash flow in the past year.
DDS had positive earnings in 4 of the past 5 years.
DDS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.81%, DDS belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
DDS has a Return On Equity of 33.04%. This is amongst the best in the industry. DDS outperforms 92.86% of its industry peers.
DDS's Return On Invested Capital of 21.49% is amongst the best of the industry. DDS outperforms 96.43% of its industry peers.
DDS had an Average Return On Invested Capital over the past 3 years of 28.72%. This is significantly above the industry average of 11.59%.
The 3 year average ROIC (28.72%) for DDS is well above the current ROIC(21.49%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.81% | ||
| ROE | 33.04% | ||
| ROIC | 21.49% |
ROA(3y)21.67%
ROA(5y)17.85%
ROE(3y)44.12%
ROE(5y)37.36%
ROIC(3y)28.72%
ROIC(5y)N/A
1.3 Margins
DDS has a better Profit Margin (9.01%) than 78.57% of its industry peers.
DDS's Profit Margin has improved in the last couple of years.
DDS has a better Operating Margin (10.86%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of DDS has grown nicely.
The Gross Margin of DDS (40.52%) is comparable to the rest of the industry.
DDS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.86% | ||
| PM (TTM) | 9.01% | ||
| GM | 40.52% |
OM growth 3Y-13.46%
OM growth 5Y33.93%
PM growth 3Y-11.56%
PM growth 5Y38.75%
GM growth 3Y-2.28%
GM growth 5Y4.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DDS is creating value.
The number of shares outstanding for DDS has been reduced compared to 1 year ago.
The number of shares outstanding for DDS has been reduced compared to 5 years ago.
DDS has a better debt/assets ratio than last year.
2.2 Solvency
DDS has a debt to FCF ratio of 0.86. This is a very positive value and a sign of high solvency as it would only need 0.86 years to pay back of all of its debts.
DDS's Debt to FCF ratio of 0.86 is amongst the best of the industry. DDS outperforms 85.71% of its industry peers.
DDS has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.29, DDS perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | N/A |
ROIC/WACC2.35
WACC9.15%
2.3 Liquidity
DDS has a Current Ratio of 2.84. This indicates that DDS is financially healthy and has no problem in meeting its short term obligations.
DDS's Current ratio of 2.84 is amongst the best of the industry. DDS outperforms 89.29% of its industry peers.
A Quick Ratio of 1.43 indicates that DDS should not have too much problems paying its short term obligations.
DDS has a Quick ratio (1.43) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
DDS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.66%.
DDS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 57.80% yearly.
DDS shows a decrease in Revenue. In the last year, the revenue decreased by -3.94%.
The Revenue has been growing slightly by 0.77% on average over the past years.
EPS 1Y (TTM)-17.66%
EPS 3Y-5.24%
EPS 5Y57.8%
EPS Q2Q%-6.31%
Revenue 1Y (TTM)-3.94%
Revenue growth 3Y-0.17%
Revenue growth 5Y0.77%
Sales Q2Q%-1.64%
3.2 Future
DDS is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -25.18% yearly.
The Revenue is expected to decrease by -3.04% on average over the next years.
EPS Next Y-24.14%
EPS Next 2Y-21.45%
EPS Next 3Y-25.18%
EPS Next 5YN/A
Revenue Next Year-0.53%
Revenue Next 2Y-0.66%
Revenue Next 3Y-3.04%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.55, the valuation of DDS can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of DDS indicates a somewhat cheap valuation: DDS is cheaper than 78.57% of the companies listed in the same industry.
DDS is valuated cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.36, which indicates a rather expensive current valuation of DDS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DDS is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of DDS to the average of the S&P500 Index (21.60), we can say DDS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 18.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DDS indicates a somewhat cheap valuation: DDS is cheaper than 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DDS is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.76 | ||
| EV/EBITDA | 6.38 |
4.3 Compensation for Growth
DDS has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as DDS's earnings are expected to decrease with -25.18% in the coming years.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y-21.45%
EPS Next 3Y-25.18%
5. Dividend
5.1 Amount
With a yearly dividend of 0.24%, DDS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.83, DDS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, DDS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
5.2 History
On average, the dividend of DDS grows each year by 111.67%, which is quite nice.
DDS has paid a dividend for at least 10 years, which is a reliable track record.
DDS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)111.67%
Div Incr Years14
Div Non Decr Years34
5.3 Sustainability
69.72% of the earnings are spent on dividend by DDS. This is not a sustainable payout ratio.
DDS's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP69.72%
EPS Next 2Y-21.45%
EPS Next 3Y-25.18%
417.83
+2.4 (+0.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.65%
Inst Owner Change-4.67%
Ins Owners23.24%
Ins Owner Change0.5%
Market Cap6.56B
Analysts45.45
Price Target316.2 (-24.32%)
Short Float %12.08%
Short Ratio6.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Yearly Dividend25.75
Dividend Growth(5Y)111.67%
DP69.72%
Div Incr Years14
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.26%
Min EPS beat(2)17.69%
Max EPS beat(2)36.84%
EPS beat(4)3
Avg EPS beat(4)11.17%
Min EPS beat(4)-23.88%
Max EPS beat(4)36.84%
EPS beat(8)7
Avg EPS beat(8)21.72%
EPS beat(12)11
Avg EPS beat(12)46.76%
EPS beat(16)15
Avg EPS beat(16)201.02%
Revenue beat(2)2
Avg Revenue beat(2)1.55%
Min Revenue beat(2)0.15%
Max Revenue beat(2)2.94%
Revenue beat(4)3
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-3.32%
Max Revenue beat(4)2.94%
Revenue beat(8)5
Avg Revenue beat(8)0.32%
Revenue beat(12)8
Avg Revenue beat(12)1.38%
Revenue beat(16)12
Avg Revenue beat(16)3.24%
PT rev (1m)3.33%
PT rev (3m)-4.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.47%
EPS NY rev (1m)11.21%
EPS NY rev (3m)4.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 18.36 | ||
| P/S | 1 | ||
| P/FCF | 10.76 | ||
| P/OCF | 9.19 | ||
| P/B | 3.65 | ||
| P/tB | 3.65 | ||
| EV/EBITDA | 6.38 |
EPS(TTM)36.19
EY8.66%
EPS(NY)22.76
Fwd EY5.45%
FCF(TTM)38.82
FCFY9.29%
OCF(TTM)45.48
OCFY10.89%
SpS419.76
BVpS114.41
TBVpS114.41
PEG (NY)N/A
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.81% | ||
| ROE | 33.04% | ||
| ROCE | 26.54% | ||
| ROIC | 21.49% | ||
| ROICexc | 35.06% | ||
| ROICexgc | 35.06% | ||
| OM | 10.86% | ||
| PM (TTM) | 9.01% | ||
| GM | 40.52% | ||
| FCFM | 9.25% |
ROA(3y)21.67%
ROA(5y)17.85%
ROE(3y)44.12%
ROE(5y)37.36%
ROIC(3y)28.72%
ROIC(5y)N/A
ROICexc(3y)44.45%
ROICexc(5y)N/A
ROICexgc(3y)44.45%
ROICexgc(5y)N/A
ROCE(3y)35.47%
ROCE(5y)N/A
ROICexcg growth 3Y-15.2%
ROICexcg growth 5Y43.2%
ROICexc growth 3Y-15.2%
ROICexc growth 5Y43.2%
OM growth 3Y-13.46%
OM growth 5Y33.93%
PM growth 3Y-11.56%
PM growth 5Y38.75%
GM growth 3Y-2.28%
GM growth 5Y4.06%
F-Score6
Asset Turnover1.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.86 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 58.27% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.78% | ||
| Profit Quality | 102.69% | ||
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | N/A |
F-Score6
WACC9.15%
ROIC/WACC2.35
Cap/Depr(3y)64.95%
Cap/Depr(5y)54.93%
Cap/Sales(3y)1.75%
Cap/Sales(5y)1.64%
Profit Quality(3y)99.06%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-17.66%
EPS 3Y-5.24%
EPS 5Y57.8%
EPS Q2Q%-6.31%
EPS Next Y-24.14%
EPS Next 2Y-21.45%
EPS Next 3Y-25.18%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.94%
Revenue growth 3Y-0.17%
Revenue growth 5Y0.77%
Sales Q2Q%-1.64%
Revenue Next Year-0.53%
Revenue Next 2Y-0.66%
Revenue Next 3Y-3.04%
Revenue Next 5YN/A
EBIT growth 1Y-21.02%
EBIT growth 3Y-13.61%
EBIT growth 5Y34.96%
EBIT Next Year13.96%
EBIT Next 3Y-8.85%
EBIT Next 5YN/A
FCF growth 1Y-18.8%
FCF growth 3Y-19.67%
FCF growth 5Y18.42%
OCF growth 1Y-19.18%
OCF growth 3Y-17.68%
OCF growth 5Y14.36%