DILLARDS INC-CL A (DDS) Stock Fundamental Analysis
NYSE:DDS - New York Stock Exchange, Inc. - US2540671011 - Common Stock - Currency: USD
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
DDS had positive earnings in the past year.
In the past year DDS had a positive cash flow from operations.
Of the past 5 years DDS 4 years were profitable.
In the past 5 years DDS always reported a positive cash flow from operatings.
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.
DDS's Return On Invested Capital of 21.16% is amongst the best of the industry. DDS outperforms 96.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DDS is significantly above the industry average of 11.29%.
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
DDS has a better Profit Margin (9.40%) than 90.32% of its industry peers.
In the last couple of years the Profit Margin of DDS has grown nicely.
With an excellent Operating Margin value of 11.37%, DDS belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
In the last couple of years the Operating Margin of DDS has grown nicely.
With a Gross Margin value of 40.96%, DDS perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
In the last couple of years the Gross Margin of DDS has grown nicely.
| 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
DDS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for DDS has been reduced compared to 1 year ago.
DDS has less shares outstanding than it did 5 years ago.
DDS has a better debt/assets ratio than last year.
2.2 Solvency
DDS has an Altman-Z score of 7.11. This indicates that DDS is financially healthy and has little risk of bankruptcy at the moment.
DDS has a Altman-Z score of 7.11. This is amongst the best in the industry. DDS outperforms 90.32% of its industry peers.
The Debt to FCF ratio of DDS is 0.78, which is an excellent value as it means it would take DDS, only 0.78 years of fcf income to pay off all of its debts.
DDS has a better Debt to FCF ratio (0.78) than 83.87% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that DDS is not too dependend on debt financing.
DDS has a Debt to Equity ratio of 0.27. This is comparable to the rest of the industry: DDS outperforms 51.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | 7.11 |
ROIC/WACC1.97
WACC10.73%
2.3 Liquidity
DDS has a Current Ratio of 2.38. This indicates that DDS is financially healthy and has no problem in meeting 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.
DDS has a Quick Ratio of 1.02. This is a normal value and indicates that DDS is financially healthy and should not expect problems in meeting 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
The earnings per share for DDS have decreased strongly by -15.84% in the last year.
DDS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.60% yearly.
DDS shows a decrease in Revenue. In the last year, the revenue decreased by -2.63%.
DDS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.12% yearly.
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
Based on estimates for the next years, DDS will show a very negative growth in Earnings Per Share. The EPS will decrease by -26.40% on average per year.
DDS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.37% yearly.
EPS Next Y-26.02%
EPS Next 2Y-20.92%
EPS Next 3Y-26.4%
EPS Next 5YN/A
Revenue Next Year-3.66%
Revenue Next 2Y-1.64%
Revenue Next 3Y-3.37%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.42, DDS is valued correctly.
DDS's Price/Earnings ratio is a bit cheaper when compared to the industry. DDS is cheaper than 70.97% of the companies in the same industry.
When comparing the Price/Earnings ratio of DDS to the average of the S&P500 Index (29.63), we can say DDS is valued rather cheaply.
The Price/Forward Earnings ratio is 17.26, 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.
The average S&P500 Price/Forward Earnings ratio is at 22.68. DDS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 17.26 |
4.2 Price Multiples
74.19% of the companies in the same industry are more expensive than DDS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DDS indicates a somewhat cheap valuation: DDS is cheaper than 74.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.48 | ||
| EV/EBITDA | 7.72 |
4.3 Compensation for Growth
The excellent profitability rating of DDS may justify a higher PE ratio.
DDS's earnings are expected to decrease with -26.40% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-20.92%
EPS Next 3Y-26.4%
5. Dividend
5.1 Amount
With a yearly dividend of 0.20%, DDS is not a good candidate for dividend investing.
DDS's Dividend Yield is a higher than the industry average which is at 5.54.
Compared to an average S&P500 Dividend Yield of 2.29, DDS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
5.2 History
On average, the dividend of DDS grows each year by 118.44%, which is quite nice.
DDS has been paying a dividend for at least 10 years, so it has a reliable track record.
DDS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)118.44%
Div Incr Years13
Div Non Decr Years33
5.3 Sustainability
54.11% of the earnings are spent on dividend by DDS. 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-20.92%
EPS Next 3Y-26.4%
482.5
-20.97 (-4.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners74.73%
Inst Owner Change2.21%
Ins Owners23.17%
Ins Owner Change-2.83%
Market Cap7.67B
Analysts45.45
Price Target338.3 (-29.89%)
Short Float %11.64%
Short Ratio7.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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)-0.2%
PT rev (3m)15.56%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)-3.41%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)5.19%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-2.86%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 17.26 | ||
| P/S | 1.15 | ||
| P/FCF | 11.48 | ||
| P/OCF | 9.76 | ||
| P/B | 3.91 | ||
| P/tB | 3.91 | ||
| EV/EBITDA | 7.72 |
EPS(TTM)38.85
EY8.05%
EPS(NY)27.96
Fwd EY5.79%
FCF(TTM)42.04
FCFY8.71%
OCF(TTM)49.43
OCFY10.24%
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 | 7.11 |
F-Score6
WACC10.73%
ROIC/WACC1.97
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-26.02%
EPS Next 2Y-20.92%
EPS Next 3Y-26.4%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.63%
Revenue growth 3Y15.75%
Revenue growth 5Y1.12%
Sales Q2Q%-3.52%
Revenue Next Year-3.66%
Revenue Next 2Y-1.64%
Revenue Next 3Y-3.37%
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%