DILLARDS INC-CL A (DDS) Stock Fundamental Analysis
NYSE:DDS - New York Stock Exchange, Inc. - US2540671011 - Common Stock
DDS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 32 industry peers in the Broadline Retail industry. DDS gets an excellent profitability rating and is at the same time showing great financial health properties. DDS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DDS was profitable.
DDS had a positive operating cash flow in the past year.
Of the past 5 years DDS 4 years were profitable.
Each year in the past 5 years DDS had a positive operating cash flow.
1.2 Ratios
DDS has a better Return On Assets (15.23%) than 93.55% of its industry peers.
With an excellent Return On Equity value of 32.07%, DDS belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
The Return On Invested Capital of DDS (21.16%) is better than 96.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DDS is significantly above the industry average of 11.22%.
The 3 year average ROIC (34.49%) for DDS is well above the current ROIC(21.16%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.23% | ||
| ROE | 32.07% | ||
| ROIC | 21.16% |
ROA(3y)24.93%
ROA(5y)15.14%
ROE(3y)52.91%
ROE(5y)32.12%
ROIC(3y)34.49%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 9.40%, DDS belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
In the last couple of years the Profit Margin of DDS has grown nicely.
DDS's Operating Margin of 11.37% is amongst the best of the industry. DDS outperforms 80.65% of its industry peers.
DDS's Operating Margin has improved in the last couple of years.
DDS's Gross Margin of 40.96% is in line compared to the rest of the industry. DDS outperforms 51.61% of its industry peers.
DDS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.37% | ||
| PM (TTM) | 9.4% | ||
| GM | 40.96% |
OM growth 3YN/A
OM growth 5Y26.89%
PM growth 3YN/A
PM growth 5Y32.63%
GM growth 3Y10.36%
GM growth 5Y3.99%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DDS is creating value.
The number of shares outstanding for DDS has been reduced compared to 1 year ago.
Compared to 5 years ago, DDS has less shares outstanding
The debt/assets ratio for DDS has been reduced compared to a year ago.
2.2 Solvency
DDS has an Altman-Z score of 6.95. This indicates that DDS is financially healthy and has little risk of bankruptcy at the moment.
DDS has a better Altman-Z score (6.95) than 90.32% of its industry peers.
DDS has a debt to FCF ratio of 0.78. This is a very positive value and a sign of high solvency as it would only need 0.78 years to pay back of all of its debts.
DDS has a better Debt to FCF ratio (0.78) than 83.87% of its industry peers.
DDS has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of DDS (0.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | 6.95 |
ROIC/WACC2.3
WACC9.21%
2.3 Liquidity
A Current Ratio of 2.38 indicates that DDS has no problem at all paying its short term obligations.
DDS's Current ratio of 2.38 is amongst the best of the industry. DDS outperforms 83.87% of its industry peers.
A Quick Ratio of 1.02 indicates that DDS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.02, DDS is in line with its industry, outperforming 51.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
DDS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.84%.
Measured over the past years, DDS shows a very strong growth in Earnings Per Share. The EPS has been growing by 48.60% on average per year.
Looking at the last year, DDS shows a decrease in Revenue. The Revenue has decreased by -2.63% in the last year.
The Revenue has been growing slightly by 1.12% on average over the past years.
EPS 1Y (TTM)-15.84%
EPS 3YN/A
EPS 5Y48.6%
EPS Q2Q%-18.55%
Revenue 1Y (TTM)-2.63%
Revenue growth 3Y15.75%
Revenue growth 5Y1.12%
Sales Q2Q%-3.52%
3.2 Future
The Earnings Per Share is expected to decrease by -26.19% on average over the next years. This is quite bad
Based on estimates for the next years, DDS will show a decrease in Revenue. The Revenue will decrease by -3.30% on average per year.
EPS Next Y-25.9%
EPS Next 2Y-20.85%
EPS Next 3Y-26.19%
EPS Next 5YN/A
Revenue Next Year-3.58%
Revenue Next 2Y-1.61%
Revenue Next 3Y-3.3%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
DDS is valuated correctly with a Price/Earnings ratio of 12.44.
Compared to the rest of the industry, the Price/Earnings ratio of DDS indicates a somewhat cheap valuation: DDS is cheaper than 67.74% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DDS to the average of the S&P500 Index (28.29), we can say DDS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 17.26, the valuation of DDS can be described as rather expensive.
DDS's Price/Forward Earnings ratio is in line with the industry average.
DDS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 17.26 |
4.2 Price Multiples
DDS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DDS is cheaper than 70.97% of the companies in the same industry.
74.19% of the companies in the same industry are more expensive than DDS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.5 | ||
| EV/EBITDA | 7.11 |
4.3 Compensation for Growth
DDS has an outstanding profitability rating, which may justify a higher PE ratio.
DDS's earnings are expected to decrease with -26.19% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-20.85%
EPS Next 3Y-26.19%
5. Dividend
5.1 Amount
With a yearly dividend of 0.22%, DDS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.56, DDS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, DDS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
5.2 History
The dividend of DDS is nicely growing with an annual growth rate of 118.44%!
DDS has paid a dividend for at least 10 years, which is a reliable track record.
DDS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)118.44%
Div Incr Years13
Div Non Decr Years33
5.3 Sustainability
DDS pays out 54.11% of its income as dividend. This is a bit on the high side, but may be sustainable.
DDS's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP54.11%
EPS Next 2Y-20.85%
EPS Next 3Y-26.19%
DILLARDS INC-CL A
NYSE:DDS (1/21/2025, 8:04:00 PM)
After market: 483.43 0 (0%)483.43
+16.45 (+3.52%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners69.8%
Inst Owner Change0.03%
Ins Owners22.82%
Ins Owner Change-3.28%
Market Cap7.69B
Analysts45.45
Price Target338.98 (-29.88%)
Short Float %12.49%
Short Ratio7.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Yearly Dividend20.3
Dividend Growth(5Y)118.44%
DP54.11%
Div Incr Years13
Div Non Decr Years33
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.1%
Min EPS beat(2)-23.88%
Max EPS beat(2)17.69%
EPS beat(4)3
Avg EPS beat(4)7.43%
Min EPS beat(4)-23.88%
Max EPS beat(4)21.87%
EPS beat(8)7
Avg EPS beat(8)21.54%
EPS beat(12)11
Avg EPS beat(12)47.35%
EPS beat(16)15
Avg EPS beat(16)200.44%
Revenue beat(2)1
Avg Revenue beat(2)-1.58%
Min Revenue beat(2)-3.32%
Max Revenue beat(2)0.15%
Revenue beat(4)2
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-3.32%
Max Revenue beat(4)0.31%
Revenue beat(8)4
Avg Revenue beat(8)-0.1%
Revenue beat(12)8
Avg Revenue beat(12)1.49%
Revenue beat(16)11
Avg Revenue beat(16)2.87%
PT rev (1m)0%
PT rev (3m)15.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.89%
EPS NY rev (1m)0%
EPS NY rev (3m)5.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 17.26 | ||
| P/S | 1.15 | ||
| P/FCF | 11.5 | ||
| P/OCF | 9.78 | ||
| P/B | 3.91 | ||
| P/tB | 3.91 | ||
| EV/EBITDA | 7.11 |
EPS(TTM)38.85
EY8.04%
EPS(NY)28.01
Fwd EY5.79%
FCF(TTM)42.04
FCFY8.7%
OCF(TTM)49.43
OCFY10.22%
SpS421.22
BVpS123.48
TBVpS123.48
PEG (NY)N/A
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.23% | ||
| ROE | 32.07% | ||
| ROCE | 26.29% | ||
| ROIC | 21.16% | ||
| ROICexc | 34.29% | ||
| ROICexgc | 34.29% | ||
| OM | 11.37% | ||
| PM (TTM) | 9.4% | ||
| GM | 40.96% | ||
| FCFM | 9.98% |
ROA(3y)24.93%
ROA(5y)15.14%
ROE(3y)52.91%
ROE(5y)32.12%
ROIC(3y)34.49%
ROIC(5y)N/A
ROICexc(3y)51.62%
ROICexc(5y)N/A
ROICexgc(3y)51.62%
ROICexgc(5y)N/A
ROCE(3y)42.85%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y37.75%
ROICexc growth 3YN/A
ROICexc growth 5Y37.75%
OM growth 3YN/A
OM growth 5Y26.89%
PM growth 3YN/A
PM growth 5Y32.63%
GM growth 3Y10.36%
GM growth 5Y3.99%
F-Score6
Asset Turnover1.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.78 | ||
| Debt/EBITDA | 0.55 | ||
| Cap/Depr | 64.33% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.26% | ||
| Profit Quality | 106.18% | ||
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 6.95 |
F-Score6
WACC9.21%
ROIC/WACC2.3
Cap/Depr(3y)62.8%
Cap/Depr(5y)52.49%
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.64%
Profit Quality(3y)110.27%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.84%
EPS 3YN/A
EPS 5Y48.6%
EPS Q2Q%-18.55%
EPS Next Y-25.9%
EPS Next 2Y-20.85%
EPS Next 3Y-26.19%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.63%
Revenue growth 3Y15.75%
Revenue growth 5Y1.12%
Sales Q2Q%-3.52%
Revenue Next Year-3.58%
Revenue Next 2Y-1.61%
Revenue Next 3Y-3.3%
Revenue Next 5YN/A
EBIT growth 1Y-19.7%
EBIT growth 3YN/A
EBIT growth 5Y28.31%
EBIT Next Year5.04%
EBIT Next 3Y-12.47%
EBIT Next 5YN/A
FCF growth 1Y-32.54%
FCF growth 3Y57.43%
FCF growth 5Y26.67%
OCF growth 1Y-29.22%
OCF growth 3Y51.74%
OCF growth 5Y19.19%