DESIGNER BRANDS INC-CLASS A (DBI)

US2505651081 - Common Stock

8.67  +0.24 (+2.85%)

After market: 8.67 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to DBI. DBI was compared to 125 industry peers in the Specialty Retail industry. While DBI is still in line with the averages on profitability rating, there are concerns on its financial health. DBI is valued quite cheap, but it does not seem to be growing.



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4

1. Profitability

1.1 Basic Checks

DBI had positive earnings in the past year.
In the past year DBI had a positive cash flow from operations.
Of the past 5 years DBI 4 years were profitable.
Of the past 5 years DBI 4 years had a positive operating cash flow.

1.2 Ratios

The Return On Assets of DBI (1.40%) is comparable to the rest of the industry.
With a decent Return On Equity value of 8.09%, DBI is doing good in the industry, outperforming 64.00% of the companies in the same industry.
With a Return On Invested Capital value of 3.65%, DBI perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DBI is significantly below the industry average of 14.70%.
The 3 year average ROIC (8.30%) for DBI is well above the current ROIC(3.65%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 1.4%
ROE 8.09%
ROIC 3.65%
ROA(3y)5.72%
ROA(5y)-0.75%
ROE(3y)27.71%
ROE(5y)-20.97%
ROIC(3y)8.3%
ROIC(5y)N/A

1.3 Margins

DBI has a Profit Margin (0.95%) which is comparable to the rest of the industry.
DBI has a Operating Margin (2.37%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DBI has declined.
DBI's Gross Margin of 31.70% is on the low side compared to the rest of the industry. DBI is outperformed by 62.40% of its industry peers.
In the last couple of years the Gross Margin of DBI has remained more or less at the same level.
Industry RankSector Rank
OM 2.37%
PM (TTM) 0.95%
GM 31.7%
OM growth 3YN/A
OM growth 5Y-14.17%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y31.55%
GM growth 5Y1.43%

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DBI is destroying value.
The number of shares outstanding for DBI has been reduced compared to 1 year ago.
DBI has less shares outstanding than it did 5 years ago.
DBI has a worse debt/assets ratio than last year.

2.2 Solvency

DBI has an Altman-Z score of 1.93. This is not the best score and indicates that DBI is in the grey zone with still only limited risk for bankruptcy at the moment.
DBI's Altman-Z score of 1.93 is in line compared to the rest of the industry. DBI outperforms 48.00% of its industry peers.
The Debt to FCF ratio of DBI is 3.98, which is a good value as it means it would take DBI, 3.98 years of fcf income to pay off all of its debts.
DBI has a better Debt to FCF ratio (3.98) than 61.60% of its industry peers.
A Debt/Equity ratio of 1.17 is on the high side and indicates that DBI has dependencies on debt financing.
DBI's Debt to Equity ratio of 1.17 is on the low side compared to the rest of the industry. DBI is outperformed by 60.80% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.17
Debt/FCF 3.98
Altman-Z 1.93
ROIC/WACC0.4
WACC9.14%

2.3 Liquidity

A Current Ratio of 1.25 indicates that DBI should not have too much problems paying its short term obligations.
DBI has a Current ratio of 1.25. This is in the lower half of the industry: DBI underperforms 63.20% of its industry peers.
A Quick Ratio of 0.33 indicates that DBI may have some problems paying its short term obligations.
DBI has a Quick ratio of 0.33. This is in the lower half of the industry: DBI underperforms 73.60% of its industry peers.
Industry RankSector Rank
Current Ratio 1.25
Quick Ratio 0.33

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3

3. Growth

3.1 Past

The earnings per share for DBI have decreased strongly by -67.39% in the last year.
DBI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.32% yearly.
Looking at the last year, DBI shows a decrease in Revenue. The Revenue has decreased by -7.25% in the last year.
DBI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.66% yearly.
EPS 1Y (TTM)-67.39%
EPS 3YN/A
EPS 5Y-18.32%
EPS growth Q2Q-728.57%
Revenue 1Y (TTM)-7.25%
Revenue growth 3Y11.23%
Revenue growth 5Y-0.66%
Revenue growth Q2Q-0.81%

3.2 Future

The Earnings Per Share is expected to grow by 37.67% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.98% on average over the next years.
EPS Next Y27.93%
EPS Next 2Y35.46%
EPS Next 3Y37.67%
EPS Next 5YN/A
Revenue Next Year1.48%
Revenue Next 2Y2.58%
Revenue Next 3Y2.98%
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 accelerating.
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.

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7

4. Valuation

4.1 Price/Earnings Ratio

DBI is valuated correctly with a Price/Earnings ratio of 14.45.
Based on the Price/Earnings ratio, DBI is valued a bit cheaper than 76.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.93, DBI is valued a bit cheaper.
A Price/Forward Earnings ratio of 11.29 indicates a reasonable valuation of DBI.
DBI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DBI is cheaper than 78.40% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DBI to the average of the S&P500 Index (21.41), we can say DBI is valued slightly cheaper.
Industry RankSector Rank
PE 14.45
Fwd PE 11.29

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, DBI is valued a bit cheaper than the industry average as 73.60% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DBI is valued cheaper than 95.20% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.62
EV/EBITDA 6.29

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.
DBI's earnings are expected to grow with 37.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y35.46%
EPS Next 3Y37.67%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.30%, DBI has a reasonable but not impressive dividend return.
DBI's Dividend Yield is rather good when compared to the industry average which is at 3.38. DBI pays more dividend than 85.60% of the companies in the same industry.
DBI's Dividend Yield is comparable with the S&P500 average which is at 2.39.
Industry RankSector Rank
Dividend Yield 2.3%

5.2 History

The dividend of DBI decreases each year by -27.55%.
DBI has been paying a dividend for at least 10 years, so it has a reliable track record.
DBI has decreased its dividend recently.
Dividend Growth(5Y)-27.55%
Div Incr Years0
Div Non Decr Years1

5.3 Sustainability

41.84% of the earnings are spent on dividend by DBI. This is a bit on the high side, but may be sustainable.
DP41.84%
EPS Next 2Y35.46%
EPS Next 3Y37.67%

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DESIGNER BRANDS INC-CLASS A

NYSE:DBI (4/16/2024, 7:04:00 PM)

After market: 8.67 0 (0%)

8.67

+0.24 (+2.85%)

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 Cap496.27M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.3%
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 RankSector Rank
PE 14.45
Fwd PE 11.29
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)0.52
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.4%
ROE 8.09%
ROCE
ROIC
ROICexc
ROICexgc
OM 2.37%
PM (TTM) 0.95%
GM 31.7%
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 Turnover1.48
Health
Industry RankSector Rank
Debt/Equity 1.17
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.25
Quick Ratio 0.33
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)
Growth
EPS 1Y (TTM)-67.39%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y27.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.25%
Revenue growth 3Y11.23%
Revenue growth 5Y
Revenue growth 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