DILLARDS INC-CL A (DDS) Stock Fundamental Analysis
NYSE:DDS - US2540671011 - Common Stock
533.72 USD
+26.92 (+5.31%)
533.72 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to DDS. 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
DDS had positive earnings in the past year.
In the past year DDS had a positive cash flow from operations.
DDS had positive earnings in 4 of the past 5 years.
Each year in the past 5 years DDS had a positive operating cash flow.
1.2 Ratios
DDS has a Return On Assets of 14.78%. This is amongst the best in the industry. DDS outperforms 96.43% of its industry peers.
The Return On Equity of DDS (31.07%) is better than 92.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.46%, DDS belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DDS is significantly above the industry average of 11.20%.
The last Return On Invested Capital (20.46%) 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 | 14.78% | ||
| ROE | 31.07% | ||
| ROIC | 20.46% |
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
DDS has a Profit Margin of 8.79%. This is amongst the best in the industry. DDS outperforms 82.14% of its industry peers.
DDS's Profit Margin has improved in the last couple of years.
DDS has a better Operating Margin (10.62%) than 71.43% of its industry peers.
In the last couple of years the Operating Margin of DDS has grown nicely.
Looking at the Gross Margin, with a value of 40.29%, DDS is in line with its industry, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Gross Margin of DDS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.62% | ||
| PM (TTM) | 8.79% | ||
| GM | 40.29% |
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
DDS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for DDS has been reduced compared to 1 year ago.
DDS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DDS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.37 indicates that DDS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.37, DDS belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
The Debt to FCF ratio of DDS is 0.85, which is an excellent value as it means it would take DDS, only 0.85 years of fcf income to pay off all of its debts.
DDS's Debt to FCF ratio of 0.85 is amongst the best of the industry. DDS outperforms 82.14% of its industry peers.
DDS has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
DDS has a Debt to Equity ratio (0.28) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 7.37 |
ROIC/WACC2.29
WACC8.94%
2.3 Liquidity
DDS has a Current Ratio of 2.41. This indicates that DDS is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.41, DDS is doing good in the industry, outperforming 78.57% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that DDS should not have too much problems paying its short term obligations.
DDS has a Quick ratio (1.13) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
DDS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.71%.
The Earnings Per Share has been growing by 57.80% on average over the past years. This is a very strong growth
DDS shows a decrease in Revenue. In the last year, the revenue decreased by -4.13%.
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)-10.71%
EPS 3Y-5.24%
EPS 5Y57.8%
EPS Q2Q%1.53%
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y-0.17%
Revenue growth 5Y0.77%
Sales Q2Q%1.6%
3.2 Future
The Earnings Per Share is expected to decrease by -12.51% on average over the next years. This is quite bad
The Revenue is expected to decrease by -1.41% on average over the next years.
EPS Next Y-17.14%
EPS Next 2Y-14.85%
EPS Next 3Y-12.51%
EPS Next 5YN/A
Revenue Next Year-0.2%
Revenue Next 2Y-0.54%
Revenue Next 3Y-1.41%
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
A Price/Earnings ratio of 14.72 indicates a correct valuation of DDS.
67.86% of the companies in the same industry are more expensive than DDS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DDS to the average of the S&P500 Index (27.24), we can say DDS is valued slightly cheaper.
The Price/Forward Earnings ratio is 19.95, which indicates a rather expensive current valuation of DDS.
Based on the Price/Forward Earnings ratio, DDS is valued a bit cheaper than 64.29% of the companies in the same industry.
DDS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 19.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DDS is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DDS indicates a somewhat cheap valuation: DDS is cheaper than 78.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.52 | ||
| EV/EBITDA | 8.02 |
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 -12.51% in the coming years.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-14.85%
EPS Next 3Y-12.51%
5. Dividend
5.1 Amount
DDS has a yearly dividend return of 0.20%, which is pretty low.
Compared to an average industry Dividend Yield of 14.83, DDS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.20, DDS pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
5.2 History
The dividend of DDS is nicely growing with an annual growth rate of 111.67%!
DDS has been paying a dividend for at least 10 years, so it has 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
71.67% of the earnings are spent on dividend by DDS. 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.
DP71.67%
EPS Next 2Y-14.85%
EPS Next 3Y-12.51%
533.72
+26.92 (+5.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners70.74%
Inst Owner Change-1.7%
Ins Owners23.25%
Ins Owner Change0.02%
Market Cap8.33B
Analysts45.45
Price Target369.75 (-30.72%)
Short Float %12.23%
Short Ratio7.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
Yearly Dividend25.75
Dividend Growth(5Y)111.67%
DP71.67%
Div Incr Years14
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.72%
Min EPS beat(2)12.59%
Max EPS beat(2)36.84%
EPS beat(4)3
Avg EPS beat(4)10.81%
Min EPS beat(4)-23.88%
Max EPS beat(4)36.84%
EPS beat(8)7
Avg EPS beat(8)22.18%
EPS beat(12)11
Avg EPS beat(12)39.39%
EPS beat(16)15
Avg EPS beat(16)166.2%
Revenue beat(2)1
Avg Revenue beat(2)1.15%
Min Revenue beat(2)-0.64%
Max Revenue beat(2)2.94%
Revenue beat(4)2
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-3.32%
Max Revenue beat(4)2.94%
Revenue beat(8)4
Avg Revenue beat(8)-0.11%
Revenue beat(12)7
Avg Revenue beat(12)0.91%
Revenue beat(16)11
Avg Revenue beat(16)2.81%
PT rev (1m)0%
PT rev (3m)3.33%
EPS NQ rev (1m)8.07%
EPS NQ rev (3m)21.58%
EPS NY rev (1m)0%
EPS NY rev (3m)11.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 19.95 | ||
| P/S | 1.27 | ||
| P/FCF | 13.52 | ||
| P/OCF | 11.86 | ||
| P/B | 4.48 | ||
| P/tB | 4.48 | ||
| EV/EBITDA | 8.02 |
EPS(TTM)36.26
EY6.79%
EPS(NY)26.75
Fwd EY5.01%
FCF(TTM)39.47
FCFY7.39%
OCF(TTM)44.99
OCFY8.43%
SpS420.52
BVpS119.02
TBVpS119.02
PEG (NY)N/A
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.78% | ||
| ROE | 31.07% | ||
| ROCE | 25.26% | ||
| ROIC | 20.46% | ||
| ROICexc | 35.26% | ||
| ROICexgc | 35.26% | ||
| OM | 10.62% | ||
| PM (TTM) | 8.79% | ||
| GM | 40.29% | ||
| FCFM | 9.39% |
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-Score5
Asset Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.85 | ||
| Debt/EBITDA | 0.6 | ||
| Cap/Depr | 48.52% | ||
| Cap/Sales | 1.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.25% | ||
| Profit Quality | 106.72% | ||
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 7.37 |
F-Score5
WACC8.94%
ROIC/WACC2.29
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)-10.71%
EPS 3Y-5.24%
EPS 5Y57.8%
EPS Q2Q%1.53%
EPS Next Y-17.14%
EPS Next 2Y-14.85%
EPS Next 3Y-12.51%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y-0.17%
Revenue growth 5Y0.77%
Sales Q2Q%1.6%
Revenue Next Year-0.2%
Revenue Next 2Y-0.54%
Revenue Next 3Y-1.41%
Revenue Next 5YN/A
EBIT growth 1Y-20.35%
EBIT growth 3Y-13.61%
EBIT growth 5Y34.96%
EBIT Next Year15%
EBIT Next 3Y-0.9%
EBIT Next 5YN/A
FCF growth 1Y-16.64%
FCF growth 3Y-19.67%
FCF growth 5Y18.42%
OCF growth 1Y-18.72%
OCF growth 3Y-17.68%
OCF growth 5Y14.36%