DESIGNER BRANDS INC-CLASS A (DBI) Stock Fundamental Analysis
NYSE:DBI - New York Stock Exchange, Inc. - US2505651081 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to DBI. DBI was compared to 121 industry peers in the Specialty Retail industry. Both the profitability and financial health of DBI have multiple concerns. DBI is cheap, but on the other hand it scores bad on growth.
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.
The reported net income has been mixed in the past 5 years: DBI reported negative net income in multiple 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.
DBI's Return On Equity of -3.79% is in line compared to the rest of the industry. DBI outperforms 45.45% of its industry peers.
DBI has a Return On Invested Capital of 2.35%. This is comparable to the rest of the industry: DBI outperforms 46.28% of its industry peers.
DBI had an Average Return On Invested Capital over the past 3 years of 5.27%. This is significantly below the industry average of 12.74%.
| 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 has a Operating Margin of 1.53%. This is comparable to the rest of the industry: DBI outperforms 46.28% of its industry peers.
DBI's Operating Margin has declined in the last couple of years.
DBI has a Gross Margin of 42.73%. This is in the better half of the industry: DBI outperforms 63.64% 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.
DBI has less shares outstanding than it did 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
Based on the Altman-Z score of 1.77, we must say that DBI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.77, DBI is not doing good in the industry: 61.16% of the companies in the same industry are doing better.
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 in line with its industry peers.
A Debt/Equity ratio of 1.74 is on the high side and indicates that DBI has dependencies on debt 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 | 1.77 |
ROIC/WACC0.27
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.24 indicates that DBI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.24, DBI is in line with its industry, outperforming 40.50% of the companies in the same industry.
DBI has a Quick Ratio of 1.24. This is a bad value and indicates that DBI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DBI (0.23) is worse than 85.12% 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.
DBI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -33.43% yearly.
The Revenue has decreased by -2.14% in the past 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 36.17% yearly.
The Revenue is expected to grow by 1.29% on average over the next years.
EPS Next Y102%
EPS Next 2Y71.14%
EPS Next 3Y36.17%
EPS Next 5YN/A
Revenue Next Year1.02%
Revenue Next 2Y1.6%
Revenue Next 3Y1.29%
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 is valuated correctly with a Price/Earnings ratio of 15.55.
Based on the Price/Earnings ratio, DBI is valued a bit cheaper than 74.38% of the companies in the same industry.
DBI is valuated rather cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.70, which indicates a rather cheap valuation of DBI.
88.43% of the companies in the same industry are more expensive than DBI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DBI to the average of the S&P500 Index (21.76), we can say DBI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 7.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DBI is valued a bit cheaper than the industry average as 78.51% of the companies are valued more expensively.
DBI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DBI is cheaper than 93.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.82 | ||
| EV/EBITDA | 5.44 |
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 36.17% in the coming years.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y71.14%
EPS Next 3Y36.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.21%, DBI is a good candidate for dividend investing.
In the last 3 months the price of DBI has falen by -34.94%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.28, DBI pays a better dividend. On top of this DBI pays more dividend than 94.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, DBI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.21% |
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.
DBI has decreased its dividend recently.
Dividend Growth(5Y)-27.12%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of DBI are negative and hence is the payout ratio. DBI will probably not be able to sustain this dividend level.
DP-99.08%
EPS Next 2Y71.14%
EPS Next 3Y36.17%
3.11
-0.23 (-6.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.76%
Inst Owner Change-4.75%
Ins Owners18.02%
Ins Owner Change8.45%
Market Cap151.21M
Analysts48
Price Target4.08 (31.19%)
Short Float %23.17%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.21% |
Yearly Dividend0.2
Dividend Growth(5Y)-27.12%
DP-99.08%
Div Incr Years0
Div Non Decr Years1
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)-15.79%
PT rev (3m)-33.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-97.12%
EPS NY rev (1m)0%
EPS NY rev (3m)-31.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 7.7 | ||
| P/S | 0.05 | ||
| P/FCF | 4.82 | ||
| P/OCF | 1.84 | ||
| P/B | 0.54 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | 5.44 |
EPS(TTM)0.2
EY6.43%
EPS(NY)0.4
Fwd EY12.99%
FCF(TTM)0.64
FCFY20.73%
OCF(TTM)1.69
OCFY54.39%
SpS61.89
BVpS5.73
TBVpS1.31
PEG (NY)0.15
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 | 1.77 |
F-Score5
WACC8.78%
ROIC/WACC0.27
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 3Y36.17%
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%