DESTINATION XL GROUP INC (DXLG)
US25065K1043 - Common Stock
We assign a fundamental rating of 5 out of 10 to DXLG. DXLG was compared to 123 industry peers in the Specialty Retail industry. DXLG has an excellent financial health rating, but there are some minor concerns on its profitability. DXLG has a bad growth rate and is valued cheaply. These ratings could make DXLG a good candidate for value investing.
1. Profitability
1.1 Basic Checks
DXLG had positive earnings in the past year.
In the past year DXLG had a positive cash flow from operations.
In multiple years DXLG reported negative net income over the last 5 years.
DXLG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DXLG has a Return On Assets of 4.02%. This is in the better half of the industry: DXLG outperforms 64.46% of its industry peers.
DXLG's Return On Equity of 9.82% is fine compared to the rest of the industry. DXLG outperforms 66.94% of its industry peers.
DXLG has a Return On Invested Capital (5.19%) which is in line with its industry peers.
DXLG had an Average Return On Invested Capital over the past 3 years of 17.30%. This is significantly above the industry average of 12.26%.
The 3 year average ROIC (17.30%) for DXLG is well above the current ROIC(5.19%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 9.82% | ||
| ROIC | 5.19% |
ROA(3y)17.82%
ROA(5y)6.09%
ROE(3y)60.35%
ROE(5y)N/A
ROIC(3y)17.3%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of DXLG (3.10%) is better than 67.77% of its industry peers.
The Operating Margin of DXLG (4.33%) is better than 60.33% of its industry peers.
DXLG has a better Gross Margin (47.71%) than 76.03% of its industry peers.
DXLG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.33% | ||
| PM (TTM) | 3.1% | ||
| GM | 47.71% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y13.72%
GM growth 5Y1.64%
2. Health
2.1 Basic Checks
DXLG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, DXLG has less shares outstanding
DXLG has more shares outstanding than it did 5 years ago.
DXLG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
DXLG has an Altman-Z score of 1.94. This is not the best score and indicates that DXLG is in the grey zone with still only limited risk for bankruptcy at the moment.
DXLG has a Altman-Z score (1.94) which is in line with its industry peers.
There is no outstanding debt for DXLG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.54
WACC9.58%
2.3 Liquidity
A Current Ratio of 1.82 indicates that DXLG should not have too much problems paying its short term obligations.
The Current ratio of DXLG (1.82) is better than 76.03% of its industry peers.
DXLG has a Quick Ratio of 1.82. This is a bad value and indicates that DXLG is not financially healthy enough and could expect problems in meeting its short term obligations.
DXLG's Quick ratio of 0.88 is fine compared to the rest of the industry. DXLG outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
DXLG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.62%.
Looking at the last year, DXLG shows a decrease in Revenue. The Revenue has decreased by -7.86% in the last year.
Measured over the past years, DXLG shows a small growth in Revenue. The Revenue has been growing by 1.95% on average per year.
EPS 1Y (TTM)-58.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-77.78%
Revenue 1Y (TTM)-7.86%
Revenue growth 3Y17.84%
Revenue growth 5Y1.95%
Sales Q2Q%-10.87%
3.2 Future
Based on estimates for the next years, DXLG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.05% on average per year.
The Revenue is expected to grow by 7.09% on average over the next years.
EPS Next Y-54.93%
EPS Next 2Y-26.94%
EPS Next 3Y-11.72%
EPS Next 5Y9.05%
Revenue Next Year-8.52%
Revenue Next 2Y-1.35%
Revenue Next 3Y2.47%
Revenue Next 5Y7.09%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
DXLG is valuated reasonably with a Price/Earnings ratio of 9.67.
Compared to the rest of the industry, the Price/Earnings ratio of DXLG indicates a rather cheap valuation: DXLG is cheaper than 86.78% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.20, DXLG is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.11, the valuation of DXLG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, DXLG is valued a bit cheaper than the industry average as 79.34% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, DXLG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 10.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DXLG is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DXLG is valued cheaper than 84.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.8 | ||
| EV/EBITDA | 1.3 |
4.3 Compensation for Growth
The decent profitability rating of DXLG may justify a higher PE ratio.
A cheap valuation may be justified as DXLG's earnings are expected to decrease with -11.72% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-26.94%
EPS Next 3Y-11.72%
5. Dividend
5.1 Amount
DXLG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DESTINATION XL GROUP INC
NASDAQ:DXLG (11/22/2024, 8:00:00 PM)
After market: 2.2 -0.12 (-5.17%)2.32
-0.26 (-10.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap135.16M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 10.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 9.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.33% | ||
| PM (TTM) | 3.1% | ||
| GM | 47.71% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.82 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-58.62%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-54.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.86%
Revenue growth 3Y17.84%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y