DESIGNER BRANDS INC-CLASS A (DBI) Stock Fundamental Analysis
NYSE:DBI - New York Stock Exchange, Inc. - US2505651081 - Common Stock - Currency: USD
Taking everything into account, DBI scores 3 out of 10 in our fundamental rating. DBI was compared to 123 industry peers in the Specialty Retail industry. Both the profitability and financial health of DBI have multiple concerns. DBI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DBI has reported negative net income.
In the past year DBI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: DBI reported negative net income in multiple years.
DBI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DBI has a worse Return On Assets (-1.37%) than 60.16% of its industry peers.
With a Return On Equity value of -10.77%, DBI perfoms like the industry average, outperforming 43.09% of the companies in the same industry.
With a Return On Invested Capital value of 1.57%, DBI perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
DBI had an Average Return On Invested Capital over the past 3 years of 5.27%. This is significantly below the industry average of 12.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.37% | ||
| ROE | -10.77% | ||
| ROIC | 1.57% |
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 1.08% is in line compared to the rest of the industry. DBI outperforms 47.15% of its industry peers.
DBI's Operating Margin has declined in the last couple of years.
DBI has a Gross Margin of 45.30%. This is in the better half of the industry: DBI outperforms 71.54% of its industry peers.
DBI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.08% | ||
| PM (TTM) | N/A | ||
| GM | 45.3% |
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 1.64, we must say that DBI is in the distress zone and has some risk of bankruptcy.
DBI's Altman-Z score of 1.64 is on the low side compared to the rest of the industry. DBI is outperformed by 60.16% of its industry peers.
DBI has a debt to FCF ratio of 14.03. This is a negative value and a sign of low solvency as DBI would need 14.03 years to pay back of all of its debts.
DBI has a Debt to FCF ratio (14.03) which is comparable to the rest of the industry.
DBI has a Debt/Equity ratio of 2.04. This is a high value indicating a heavy dependency on external financing.
DBI has a Debt to Equity ratio of 2.04. This is in the lower half of the industry: DBI underperforms 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | 14.03 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.18
WACC8.59%
2.3 Liquidity
A Current Ratio of 1.27 indicates that DBI should not have too much problems paying its short term obligations.
DBI has a Current ratio (1.27) which is comparable to the rest of the industry.
A Quick Ratio of 0.25 indicates that DBI may have some problems paying its short term obligations.
The Quick ratio of DBI (0.25) is worse than 79.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
The earnings per share for DBI have decreased strongly by -129.79% in the last year.
The earnings per share for DBI have been decreasing by -33.43% on average. This is quite bad
Looking at the last year, DBI shows a decrease in Revenue. The Revenue has decreased by -4.22% in the last year.
The Revenue has been decreasing by -2.94% on average over the past years.
EPS 1Y (TTM)-129.79%
EPS 3Y-50.9%
EPS 5Y-33.43%
EPS Q2Q%-425%
Revenue 1Y (TTM)-4.22%
Revenue growth 3Y-1.99%
Revenue growth 5Y-2.94%
Sales Q2Q%-7.99%
3.2 Future
Based on estimates for the next years, DBI will show a very strong growth in Earnings Per Share. The EPS will grow by 36.17% on average per year.
The Revenue is expected to decrease by -0.22% on average over the next years.
EPS Next Y-456.87%
EPS Next 2Y-111.53%
EPS Next 3Y36.17%
EPS Next 5YN/A
Revenue Next Year-4.7%
Revenue Next 2Y-1.19%
Revenue Next 3Y-0.22%
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.
4. Valuation
4.1 Price/Earnings Ratio
DBI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for DBI. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
DBI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DBI is cheaper than 73.17% of the companies in the same industry.
95.94% of the companies in the same industry are more expensive than DBI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.54 | ||
| EV/EBITDA | 6.8 |
4.3 Compensation for Growth
DBI's earnings are expected to grow with 36.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-111.53%
EPS Next 3Y36.17%
5. Dividend
5.1 Amount
DBI has a Yearly Dividend Yield of 7.09%, which is a nice return.
DBI's Dividend Yield is rather good when compared to the industry average which is at 5.04. DBI pays more dividend than 94.31% 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 | 7.09% |
5.2 History
The dividend of DBI decreases each year by -27.12%.
DBI has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of DBI decreased 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-34.73%
EPS Next 2Y-111.53%
EPS Next 3Y36.17%
2.85
+0.09 (+3.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.6%
Inst Owner Change-0.21%
Ins Owners18.88%
Ins Owner Change16.4%
Market Cap139.14M
Analysts48
Price Target3.57 (25.26%)
Short Float %23.46%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.09% |
Yearly Dividend0.2
Dividend Growth(5Y)-27.12%
DP-34.73%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-148%
Min EPS beat(2)-306.48%
Max EPS beat(2)10.48%
EPS beat(4)1
Avg EPS beat(4)-91.54%
Min EPS beat(4)-306.48%
Max EPS beat(4)10.48%
EPS beat(8)3
Avg EPS beat(8)-51.37%
EPS beat(12)5
Avg EPS beat(12)6.14%
EPS beat(16)8
Avg EPS beat(16)21.67%
Revenue beat(2)0
Avg Revenue beat(2)-4.49%
Min Revenue beat(2)-7.19%
Max Revenue beat(2)-1.78%
Revenue beat(4)0
Avg Revenue beat(4)-4.85%
Min Revenue beat(4)-7.19%
Max Revenue beat(4)-1.78%
Revenue beat(8)0
Avg Revenue beat(8)-3.26%
Revenue beat(12)1
Avg Revenue beat(12)-2.82%
Revenue beat(16)3
Avg Revenue beat(16)-2.11%
PT rev (1m)0%
PT rev (3m)-12.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-62.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-276.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.05 | ||
| P/FCF | 3.54 | ||
| P/OCF | 1.71 | ||
| P/B | 0.52 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 6.8 |
EPS(TTM)-0.14
EYN/A
EPS(NY)-0.49
Fwd EYN/A
FCF(TTM)0.81
FCFY28.26%
OCF(TTM)1.67
OCFY58.61%
SpS60.42
BVpS5.47
TBVpS1.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.37% | ||
| ROE | -10.77% | ||
| ROCE | 2.15% | ||
| ROIC | 1.57% | ||
| ROICexc | 1.62% | ||
| ROICexgc | 1.9% | ||
| OM | 1.08% | ||
| PM (TTM) | N/A | ||
| GM | 45.3% | ||
| FCFM | 1.33% |
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-Score3
Asset Turnover1.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | 14.03 | ||
| Debt/EBITDA | 5.79 | ||
| Cap/Depr | 67.85% | ||
| Cap/Sales | 1.43% | ||
| Interest Coverage | 0.77 | ||
| Cash Conversion | 86.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 1.64 |
F-Score3
WACC8.59%
ROIC/WACC0.18
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)-129.79%
EPS 3Y-50.9%
EPS 5Y-33.43%
EPS Q2Q%-425%
EPS Next Y-456.87%
EPS Next 2Y-111.53%
EPS Next 3Y36.17%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.22%
Revenue growth 3Y-1.99%
Revenue growth 5Y-2.94%
Sales Q2Q%-7.99%
Revenue Next Year-4.7%
Revenue Next 2Y-1.19%
Revenue Next 3Y-0.22%
Revenue Next 5YN/A
EBIT growth 1Y-48.55%
EBIT growth 3Y-38.48%
EBIT growth 5Y-19.46%
EBIT Next Year124.76%
EBIT Next 3Y25.08%
EBIT Next 5YN/A
FCF growth 1Y-81.05%
FCF growth 3Y-39.04%
FCF growth 5Y-23.41%
OCF growth 1Y-69.18%
OCF growth 3Y-21.72%
OCF growth 5Y-16.01%