DILLARDS INC-CL A (DDS) Stock Fundamental Analysis
NYSE:DDS - New York Stock Exchange, Inc. - US2540671011 - Common Stock - Currency: USD
Taking everything into account, DDS scores 6 out of 10 in our fundamental rating. DDS was compared to 28 industry peers in the Broadline Retail industry. DDS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DDS 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 DDS was profitable.
In the past year DDS had a positive cash flow from operations.
DDS had positive earnings in 4 of the past 5 years.
DDS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 16.81%, DDS belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
DDS has a Return On Equity of 33.04%. This is amongst the best in the industry. DDS outperforms 92.86% of its industry peers.
With an excellent Return On Invested Capital value of 21.49%, DDS belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
DDS had an Average Return On Invested Capital over the past 3 years of 28.72%. This is significantly above the industry average of 11.59%.
The last Return On Invested Capital (21.49%) for DDS is well below the 3 year average (28.72%), which needs to be investigated, but indicates that DDS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.81% | ||
| ROE | 33.04% | ||
| ROIC | 21.49% |
ROA(3y)21.67%
ROA(5y)17.85%
ROE(3y)44.12%
ROE(5y)37.36%
ROIC(3y)28.72%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 9.01%, DDS is doing good in the industry, outperforming 78.57% of the companies in the same industry.
DDS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.86%, DDS is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
DDS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 40.52%, DDS is in line with its industry, outperforming 50.00% of the companies in the same industry.
DDS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.86% | ||
| PM (TTM) | 9.01% | ||
| GM | 40.52% |
OM growth 3Y-13.46%
OM growth 5Y33.93%
PM growth 3Y-11.56%
PM growth 5Y38.75%
GM growth 3Y-2.28%
GM growth 5Y4.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DDS is creating value.
DDS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DDS has been reduced compared to 5 years ago.
DDS has a better debt/assets ratio than last year.
2.2 Solvency
DDS has a debt to FCF ratio of 0.86. This is a very positive value and a sign of high solvency as it would only need 0.86 years to pay back of all of its debts.
DDS has a Debt to FCF ratio of 0.86. This is amongst the best in the industry. DDS outperforms 85.71% of its industry peers.
DDS has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
DDS has a Debt to Equity ratio (0.29) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | N/A |
ROIC/WACC2.35
WACC9.15%
2.3 Liquidity
A Current Ratio of 2.84 indicates that DDS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.84, DDS belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
A Quick Ratio of 1.43 indicates that DDS should not have too much problems paying its short term obligations.
DDS has a Quick ratio (1.43) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
DDS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.66%.
Measured over the past years, DDS shows a very strong growth in Earnings Per Share. The EPS has been growing by 57.80% on average per year.
DDS shows a decrease in Revenue. In the last year, the revenue decreased by -3.94%.
Measured over the past years, DDS shows a small growth in Revenue. The Revenue has been growing by 0.77% on average per year.
EPS 1Y (TTM)-17.66%
EPS 3Y-5.24%
EPS 5Y57.8%
EPS Q2Q%-6.31%
Revenue 1Y (TTM)-3.94%
Revenue growth 3Y-0.17%
Revenue growth 5Y0.77%
Sales Q2Q%-1.64%
3.2 Future
The Earnings Per Share is expected to decrease by -25.18% on average over the next years. This is quite bad
Based on estimates for the next years, DDS will show a decrease in Revenue. The Revenue will decrease by -3.04% on average per year.
EPS Next Y-24.14%
EPS Next 2Y-21.45%
EPS Next 3Y-25.18%
EPS Next 5YN/A
Revenue Next Year-0.53%
Revenue Next 2Y-0.66%
Revenue Next 3Y-3.04%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DDS is valuated correctly with a Price/Earnings ratio of 12.45.
Based on the Price/Earnings ratio, DDS is valued a bit cheaper than 78.57% of the companies in the same industry.
DDS is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.79 indicates a rather expensive valuation of DDS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DDS is on the same level as its industry peers.
DDS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.45 | ||
| Fwd PE | 19.79 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than DDS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DDS indicates a somewhat cheap valuation: DDS is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.6 | ||
| EV/EBITDA | 6.38 |
4.3 Compensation for Growth
DDS has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as DDS's earnings are expected to decrease with -25.18% in the coming years.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-21.45%
EPS Next 3Y-25.18%
5. Dividend
5.1 Amount
DDS has a yearly dividend return of 0.24%, which is pretty low.
DDS's Dividend Yield is a higher than the industry average which is at 11.83.
Compared to an average S&P500 Dividend Yield of 2.42, DDS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
5.2 History
The dividend of DDS is nicely growing with an annual growth rate of 111.67%!
DDS has paid a dividend for at least 10 years, which is a reliable track record.
DDS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)111.67%
Div Incr Years14
Div Non Decr Years34
5.3 Sustainability
DDS pays out 69.72% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of DDS has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP69.72%
EPS Next 2Y-21.45%
EPS Next 3Y-25.18%
450.49
+32.66 (+7.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.65%
Inst Owner Change-4.67%
Ins Owners23.24%
Ins Owner Change0.5%
Market Cap7.07B
Analysts45.45
Price Target316.2 (-29.81%)
Short Float %11.84%
Short Ratio7.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Yearly Dividend25.75
Dividend Growth(5Y)111.67%
DP69.72%
Div Incr Years14
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.26%
Min EPS beat(2)17.69%
Max EPS beat(2)36.84%
EPS beat(4)3
Avg EPS beat(4)11.17%
Min EPS beat(4)-23.88%
Max EPS beat(4)36.84%
EPS beat(8)7
Avg EPS beat(8)21.72%
EPS beat(12)11
Avg EPS beat(12)46.76%
EPS beat(16)15
Avg EPS beat(16)201.02%
Revenue beat(2)2
Avg Revenue beat(2)1.55%
Min Revenue beat(2)0.15%
Max Revenue beat(2)2.94%
Revenue beat(4)3
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-3.32%
Max Revenue beat(4)2.94%
Revenue beat(8)5
Avg Revenue beat(8)0.32%
Revenue beat(12)8
Avg Revenue beat(12)1.38%
Revenue beat(16)12
Avg Revenue beat(16)3.24%
PT rev (1m)3.33%
PT rev (3m)-4.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.47%
EPS NY rev (1m)11.21%
EPS NY rev (3m)4.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.45 | ||
| Fwd PE | 19.79 | ||
| P/S | 1.07 | ||
| P/FCF | 11.6 | ||
| P/OCF | 9.9 | ||
| P/B | 3.94 | ||
| P/tB | 3.94 | ||
| EV/EBITDA | 6.38 |
EPS(TTM)36.19
EY8.03%
EPS(NY)22.76
Fwd EY5.05%
FCF(TTM)38.82
FCFY8.62%
OCF(TTM)45.48
OCFY10.1%
SpS419.76
BVpS114.41
TBVpS114.41
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.81% | ||
| ROE | 33.04% | ||
| ROCE | 26.54% | ||
| ROIC | 21.49% | ||
| ROICexc | 35.06% | ||
| ROICexgc | 35.06% | ||
| OM | 10.86% | ||
| PM (TTM) | 9.01% | ||
| GM | 40.52% | ||
| FCFM | 9.25% |
ROA(3y)21.67%
ROA(5y)17.85%
ROE(3y)44.12%
ROE(5y)37.36%
ROIC(3y)28.72%
ROIC(5y)N/A
ROICexc(3y)44.45%
ROICexc(5y)N/A
ROICexgc(3y)44.45%
ROICexgc(5y)N/A
ROCE(3y)35.47%
ROCE(5y)N/A
ROICexcg growth 3Y-15.2%
ROICexcg growth 5Y43.2%
ROICexc growth 3Y-15.2%
ROICexc growth 5Y43.2%
OM growth 3Y-13.46%
OM growth 5Y33.93%
PM growth 3Y-11.56%
PM growth 5Y38.75%
GM growth 3Y-2.28%
GM growth 5Y4.06%
F-Score6
Asset Turnover1.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.86 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 58.27% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.78% | ||
| Profit Quality | 102.69% | ||
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | N/A |
F-Score6
WACC9.15%
ROIC/WACC2.35
Cap/Depr(3y)64.95%
Cap/Depr(5y)54.93%
Cap/Sales(3y)1.75%
Cap/Sales(5y)1.64%
Profit Quality(3y)99.06%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-17.66%
EPS 3Y-5.24%
EPS 5Y57.8%
EPS Q2Q%-6.31%
EPS Next Y-24.14%
EPS Next 2Y-21.45%
EPS Next 3Y-25.18%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.94%
Revenue growth 3Y-0.17%
Revenue growth 5Y0.77%
Sales Q2Q%-1.64%
Revenue Next Year-0.53%
Revenue Next 2Y-0.66%
Revenue Next 3Y-3.04%
Revenue Next 5YN/A
EBIT growth 1Y-21.02%
EBIT growth 3Y-13.61%
EBIT growth 5Y34.96%
EBIT Next Year13.96%
EBIT Next 3Y-8.85%
EBIT Next 5YN/A
FCF growth 1Y-18.8%
FCF growth 3Y-19.67%
FCF growth 5Y18.42%
OCF growth 1Y-19.18%
OCF growth 3Y-17.68%
OCF growth 5Y14.36%