DESTINATION XL GROUP INC (DXLG) Stock Fundamental Analysis
NASDAQ:DXLG - Nasdaq - US25065K1043 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to DXLG. DXLG was compared to 121 industry peers in the Specialty Retail industry. Both the profitability and the financial health of DXLG get a neutral evaluation. Nothing too spectacular is happening here. DXLG 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 DXLG was profitable.
In the past year DXLG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: DXLG reported negative net income in multiple years.
Of the past 5 years DXLG 4 years had a positive operating cash flow.
1.2 Ratios
DXLG has a Return On Assets (2.52%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 6.60%, DXLG is doing good in the industry, outperforming 61.98% of the companies in the same industry.
The Return On Invested Capital of DXLG (3.39%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for DXLG is above the industry average of 14.53%.
The last Return On Invested Capital (3.39%) for DXLG is well below the 3 year average (17.30%), which needs to be investigated, but indicates that DXLG had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 6.6% | ||
| ROIC | 3.39% |
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
DXLG has a Profit Margin (1.98%) which is in line with its industry peers.
The Operating Margin of DXLG (2.81%) is comparable to the rest of the industry.
The Gross Margin of DXLG (47.18%) is better than 74.38% of its industry peers.
DXLG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.81% | ||
| PM (TTM) | 1.98% | ||
| GM | 47.18% |
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.
DXLG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DXLG has been increased compared to 5 years ago.
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.
2.2 Solvency
DXLG has an Altman-Z score of 1.66. This is a bad value and indicates that DXLG is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.66, DXLG perfoms like the industry average, outperforming 41.32% of the companies in the same industry.
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 | 1.66 |
ROIC/WACC0.35
WACC9.57%
2.3 Liquidity
DXLG has a Current Ratio of 1.57. This is a normal value and indicates that DXLG is financially healthy and should not expect problems in meeting its short term obligations.
DXLG has a Current ratio of 1.57. This is in the better half of the industry: DXLG outperforms 64.46% of its industry peers.
DXLG has a Quick Ratio of 1.57. 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 has a Quick ratio (0.57) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
DXLG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -68.75%.
DXLG shows a decrease in Revenue. In the last year, the revenue decreased by -8.24%.
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)-68.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-150%
Revenue 1Y (TTM)-8.24%
Revenue growth 3Y17.84%
Revenue growth 5Y1.95%
Sales Q2Q%-9.8%
3.2 Future
The Earnings Per Share is expected to decrease by -9.21% on average over the next years.
Based on estimates for the next years, DXLG will show a small growth in Revenue. The Revenue will grow by 2.74% on average per year.
EPS Next Y-76.28%
EPS Next 2Y-39.36%
EPS Next 3Y-27.6%
EPS Next 5Y-9.21%
Revenue Next Year-9.31%
Revenue Next 2Y-3.98%
Revenue Next 3Y-0.46%
Revenue Next 5Y2.74%
3.3 Evolution
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
The Price/Earnings ratio is 13.00, which indicates a correct valuation of DXLG.
Compared to the rest of the industry, the Price/Earnings ratio of DXLG indicates a somewhat cheap valuation: DXLG is cheaper than 76.86% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DXLG to the average of the S&P500 Index (29.35), we can say DXLG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.33, the valuation of DXLG can be described as correct.
Based on the Price/Forward Earnings ratio, DXLG is valued a bit cheaper than 71.90% of the companies in the same industry.
DXLG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 12.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DXLG indicates a rather cheap valuation: DXLG is cheaper than 100.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DXLG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.93 | ||
| EV/EBITDA | 0.99 |
4.3 Compensation for Growth
DXLG's earnings are expected to decrease with -27.60% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-39.36%
EPS Next 3Y-27.6%
5. Dividend
5.1 Amount
DXLG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.95
-0.02 (-1.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.72%
Inst Owner Change-6.26%
Ins Owners5.86%
Ins Owner Change0.53%
Market Cap105.90M
Analysts80
Price Target2.81 (44.1%)
Short Float %8.01%
Short Ratio18.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-127.23%
Min EPS beat(2)-198.04%
Max EPS beat(2)-56.43%
EPS beat(4)2
Avg EPS beat(4)-50.77%
Min EPS beat(4)-198.04%
Max EPS beat(4)30.72%
EPS beat(8)3
Avg EPS beat(8)-25.67%
EPS beat(12)7
Avg EPS beat(12)35.07%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-7.53%
Min Revenue beat(2)-7.96%
Max Revenue beat(2)-7.11%
Revenue beat(4)0
Avg Revenue beat(4)-5.47%
Min Revenue beat(4)-7.96%
Max Revenue beat(4)-2.77%
Revenue beat(8)0
Avg Revenue beat(8)-3.68%
Revenue beat(12)3
Avg Revenue beat(12)-1.06%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-8.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-58.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-47.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 12.33 | ||
| P/S | 0.22 | ||
| P/FCF | 41.93 | ||
| P/OCF | 3.66 | ||
| P/B | 0.73 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | 0.99 |
EPS(TTM)0.15
EY7.69%
EPS(NY)0.16
Fwd EY8.11%
FCF(TTM)0.05
FCFY2.39%
OCF(TTM)0.53
OCFY27.34%
SpS8.93
BVpS2.68
TBVpS2.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 6.6% | ||
| ROCE | 4.68% | ||
| ROIC | 3.39% | ||
| ROICexc | 3.98% | ||
| ROICexgc | 4% | ||
| OM | 2.81% | ||
| PM (TTM) | 1.98% | ||
| GM | 47.18% | ||
| FCFM | 0.52% |
ROA(3y)17.82%
ROA(5y)6.09%
ROE(3y)60.35%
ROE(5y)N/A
ROIC(3y)17.3%
ROIC(5y)N/A
ROICexc(3y)20.62%
ROICexc(5y)N/A
ROICexgc(3y)20.75%
ROICexgc(5y)N/A
ROCE(3y)23.84%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y13.72%
GM growth 5Y1.64%
F-Score5
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 192.52% | ||
| Cap/Sales | 5.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.76% | ||
| Profit Quality | 26.3% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 1.66 |
F-Score5
WACC9.57%
ROIC/WACC0.35
Cap/Depr(3y)73.06%
Cap/Depr(5y)58.7%
Cap/Sales(3y)2.05%
Cap/Sales(5y)2.06%
Profit Quality(3y)98.63%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-68.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-150%
EPS Next Y-76.28%
EPS Next 2Y-39.36%
EPS Next 3Y-27.6%
EPS Next 5Y-9.21%
Revenue 1Y (TTM)-8.24%
Revenue growth 3Y17.84%
Revenue growth 5Y1.95%
Sales Q2Q%-9.8%
Revenue Next Year-9.31%
Revenue Next 2Y-3.98%
Revenue Next 3Y-0.46%
Revenue Next 5Y2.74%
EBIT growth 1Y-69.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-44.35%
EBIT Next 3Y-9.22%
EBIT Next 5Y0.93%
FCF growth 1Y-91.91%
FCF growth 3YN/A
FCF growth 5Y63.19%
OCF growth 1Y-30.34%
OCF growth 3YN/A
OCF growth 5Y25.8%