DESIGNER BRANDS INC-CLASS A (DBI) Stock Fundamental Analysis
NYSE:DBI - New York Stock Exchange, Inc. - US2505651081 - Common Stock - Currency: USD
Overall DBI gets a fundamental rating of 4 out of 10. We evaluated DBI against 121 industry peers in the Specialty Retail industry. DBI may be in some trouble as it scores bad on both profitability and health. DBI has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year DBI was profitable.
In the past year DBI had a positive cash flow from operations.
In multiple years DBI reported negative net income over the last 5 years.
Of the past 5 years DBI 4 years had a positive operating cash flow.
1.2 Ratios
DBI has a Return On Assets (-0.53%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -3.79%, DBI is in line with its industry, outperforming 47.11% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.35%, DBI is in line with its industry, outperforming 46.28% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DBI is significantly below the industry average of 13.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.53% | ||
| ROE | -3.79% | ||
| ROIC | 2.35% |
ROA(3y)2.99%
ROA(5y)-1.62%
ROE(3y)13.96%
ROE(5y)-24.35%
ROIC(3y)5.27%
ROIC(5y)N/A
1.3 Margins
DBI's Operating Margin of 1.53% is in line compared to the rest of the industry. DBI outperforms 46.28% of its industry peers.
In the last couple of years the Operating Margin of DBI has declined.
DBI has a Gross Margin of 42.73%. This is in the better half of the industry: DBI outperforms 64.46% of its industry peers.
DBI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.53% | ||
| PM (TTM) | N/A | ||
| GM | 42.73% |
OM growth 3Y-37.23%
OM growth 5Y-17.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.53%
GM growth 5Y8.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DBI is destroying value.
Compared to 1 year ago, DBI has less shares outstanding
DBI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DBI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.75, we must say that DBI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DBI (1.75) is worse than 60.33% of its industry peers.
DBI has a debt to FCF ratio of 15.67. This is a negative value and a sign of low solvency as DBI would need 15.67 years to pay back of all of its debts.
DBI has a Debt to FCF ratio (15.67) which is comparable to the rest of the industry.
DBI has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of DBI (1.74) is worse than 68.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 15.67 | ||
| Altman-Z | 1.75 |
ROIC/WACC0.28
WACC8.27%
2.3 Liquidity
DBI has a Current Ratio of 1.24. This is a normal value and indicates that DBI is financially healthy and should not expect problems in meeting its short term obligations.
DBI has a Current ratio (1.24) which is comparable to the rest of the industry.
A Quick Ratio of 0.23 indicates that DBI may have some problems paying its short term obligations.
The Quick ratio of DBI (0.23) is worse than 84.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
The earnings per share for DBI have decreased strongly by -66.67% in the last year.
Measured over the past years, DBI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -33.43% on average per year.
Looking at the last year, DBI shows a decrease in Revenue. The Revenue has decreased by -2.14% in the last year.
Measured over the past years, DBI shows a decrease in Revenue. The Revenue has been decreasing by -2.94% on average per year.
EPS 1Y (TTM)-66.67%
EPS 3Y-50.9%
EPS 5Y-33.43%
EPS Q2Q%0%
Revenue 1Y (TTM)-2.14%
Revenue growth 3Y-1.99%
Revenue growth 5Y-2.94%
Sales Q2Q%-5.41%
3.2 Future
DBI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.51% yearly.
DBI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.29% yearly.
EPS Next Y102%
EPS Next 2Y71.14%
EPS Next 3Y36.51%
EPS Next 5YN/A
Revenue Next Year1.02%
Revenue Next 2Y1.6%
Revenue Next 3Y1.29%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.40, the valuation of DBI can be described as reasonable.
Based on the Price/Earnings ratio, DBI is valued cheaper than 80.99% of the companies in the same industry.
DBI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
With a Price/Forward Earnings ratio of 5.64, the valuation of DBI can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DBI indicates a rather cheap valuation: DBI is cheaper than 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, DBI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.4 | ||
| Fwd PE | 5.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DBI is valued cheaper than 80.17% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DBI is valued cheaply inside the industry as 95.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.54 | ||
| EV/EBITDA | 5.08 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as DBI's earnings are expected to grow with 36.51% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y71.14%
EPS Next 3Y36.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.30%, DBI is a good candidate for dividend investing.
The stock price of DBI dropped by -43.56% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
DBI's Dividend Yield is rather good when compared to the industry average which is at 5.21. DBI pays more dividend than 96.69% of the companies in the same industry.
DBI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.3% |
5.2 History
The dividend of DBI decreases each year by -27.12%.
DBI has paid a dividend for at least 10 years, which is a reliable track record.
DBI has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-27.12%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
DBI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-99.08%
EPS Next 2Y71.14%
EPS Next 3Y36.51%
2.28
-0.07 (-2.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.6%
Inst Owner Change-4.75%
Ins Owners18.88%
Ins Owner Change12.24%
Market Cap110.85M
Analysts48
Price Target4.08 (78.95%)
Short Float %23.66%
Short Ratio4.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.3% |
Yearly Dividend0.2
Dividend Growth(5Y)-27.12%
DP-99.08%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.93%
Min EPS beat(2)-24.34%
Max EPS beat(2)10.48%
EPS beat(4)1
Avg EPS beat(4)-23.86%
Min EPS beat(4)-45.82%
Max EPS beat(4)10.48%
EPS beat(8)3
Avg EPS beat(8)-14.26%
EPS beat(12)6
Avg EPS beat(12)39.51%
EPS beat(16)9
Avg EPS beat(16)51.24%
Revenue beat(2)0
Avg Revenue beat(2)-2.93%
Min Revenue beat(2)-4.07%
Max Revenue beat(2)-1.78%
Revenue beat(4)0
Avg Revenue beat(4)-3.13%
Min Revenue beat(4)-6.36%
Max Revenue beat(4)-0.33%
Revenue beat(8)0
Avg Revenue beat(8)-2.68%
Revenue beat(12)2
Avg Revenue beat(12)-2.15%
Revenue beat(16)4
Avg Revenue beat(16)-1.22%
PT rev (1m)0%
PT rev (3m)-33.33%
EPS NQ rev (1m)-1366.6%
EPS NQ rev (3m)-150%
EPS NY rev (1m)0%
EPS NY rev (3m)-31.03%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.4 | ||
| Fwd PE | 5.64 | ||
| P/S | 0.04 | ||
| P/FCF | 3.54 | ||
| P/OCF | 1.35 | ||
| P/B | 0.4 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 5.08 |
EPS(TTM)0.2
EY8.77%
EPS(NY)0.4
Fwd EY17.72%
FCF(TTM)0.64
FCFY28.28%
OCF(TTM)1.69
OCFY74.18%
SpS61.89
BVpS5.73
TBVpS1.31
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.53% | ||
| ROE | -3.79% | ||
| ROCE | 3.24% | ||
| ROIC | 2.35% | ||
| ROICexc | 2.43% | ||
| ROICexgc | 2.88% | ||
| OM | 1.53% | ||
| PM (TTM) | N/A | ||
| GM | 42.73% | ||
| FCFM | 1.04% |
ROA(3y)2.99%
ROA(5y)-1.62%
ROE(3y)13.96%
ROE(5y)-24.35%
ROIC(3y)5.27%
ROIC(5y)N/A
ROICexc(3y)5.49%
ROICexc(5y)N/A
ROICexgc(3y)6.23%
ROICexgc(5y)N/A
ROCE(3y)7.26%
ROCE(5y)N/A
ROICexcg growth 3Y-40.03%
ROICexcg growth 5Y-14.78%
ROICexc growth 3Y-41.48%
ROICexc growth 5Y-16.22%
OM growth 3Y-37.23%
OM growth 5Y-17.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.53%
GM growth 5Y8.35%
F-Score5
Asset Turnover1.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 15.67 | ||
| Debt/EBITDA | 4.41 | ||
| Cap/Depr | 79.74% | ||
| Cap/Sales | 1.69% | ||
| Interest Coverage | 1.14 | ||
| Cash Conversion | 74.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 1.75 |
F-Score5
WACC8.27%
ROIC/WACC0.28
Cap/Depr(3y)76.83%
Cap/Depr(5y)61.65%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-66.67%
EPS 3Y-50.9%
EPS 5Y-33.43%
EPS Q2Q%0%
EPS Next Y102%
EPS Next 2Y71.14%
EPS Next 3Y36.51%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.14%
Revenue growth 3Y-1.99%
Revenue growth 5Y-2.94%
Sales Q2Q%-5.41%
Revenue Next Year1.02%
Revenue Next 2Y1.6%
Revenue Next 3Y1.29%
Revenue Next 5YN/A
EBIT growth 1Y-37.04%
EBIT growth 3Y-38.48%
EBIT growth 5Y-19.46%
EBIT Next Year124.76%
EBIT Next 3Y27.24%
EBIT Next 5YN/A
FCF growth 1Y-70.82%
FCF growth 3Y-39.04%
FCF growth 5Y-23.41%
OCF growth 1Y-49.36%
OCF growth 3Y-21.72%
OCF growth 5Y-16.01%