DILLARDS INC-CL A (DDS) Stock Fundamental Analysis
NYSE:DDS - New York Stock Exchange, Inc. - US2540671011 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to DDS. DDS was compared to 31 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
In the past year DDS was profitable.
In the past year DDS had a positive cash flow from operations.
Of the past 5 years DDS 4 years were profitable.
DDS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DDS's Return On Assets of 16.81% is amongst the best of the industry. DDS outperforms 96.77% of its industry peers.
DDS has a Return On Equity of 33.04%. This is amongst the best in the industry. DDS outperforms 90.32% of its industry peers.
DDS has a Return On Invested Capital of 21.49%. This is amongst the best in the industry. DDS outperforms 96.77% of its industry peers.
DDS had an Average Return On Invested Capital over the past 3 years of 28.72%. This is significantly above the industry average of 11.52%.
The 3 year average ROIC (28.72%) for DDS is well above the current ROIC(21.49%). The reason for the recent decline needs to be investigated.
| 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
DDS's Profit Margin of 9.01% is amongst the best of the industry. DDS outperforms 80.65% of its industry peers.
DDS's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 10.86%, DDS is doing good in the industry, outperforming 74.19% of the companies in the same industry.
In the last couple of years the Operating Margin of DDS has grown nicely.
The Gross Margin of DDS (40.52%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DDS has grown nicely.
| 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 better Debt to FCF ratio (0.86) than 83.87% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that DDS is not too dependend on debt financing.
DDS has a Debt to Equity ratio of 0.29. This is comparable to the rest of the industry: DDS outperforms 51.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | N/A |
ROIC/WACC2.13
WACC10.1%
2.3 Liquidity
DDS has a Current Ratio of 2.84. This indicates that DDS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of DDS (2.84) is better than 87.10% of its industry peers.
A Quick Ratio of 1.43 indicates that DDS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.43, DDS is in line with its industry, outperforming 58.06% of the companies in the same 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 -17.49%.
DDS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 57.80% yearly.
DDS shows a decrease in Revenue. In the last year, the revenue decreased by -4.13%.
DDS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.77% yearly.
EPS 1Y (TTM)-17.49%
EPS 3Y-5.24%
EPS 5Y57.8%
EPS Q2Q%-12.69%
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y-0.17%
Revenue growth 5Y0.77%
Sales Q2Q%-3.43%
3.2 Future
Based on estimates for the next years, DDS will show a very negative growth in Earnings Per Share. The EPS will decrease by -28.23% on average per year.
The Revenue is expected to decrease by -3.52% on average over the next years.
EPS Next Y-31.79%
EPS Next 2Y-24.87%
EPS Next 3Y-28.23%
EPS Next 5YN/A
Revenue Next Year-0.67%
Revenue Next 2Y-0.78%
Revenue Next 3Y-3.52%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.37, the valuation of DDS can be described as very reasonable.
DDS's Price/Earnings ratio is rather cheap when compared to the industry. DDS is cheaper than 83.87% of the companies in the same industry.
When comparing the Price/Earnings ratio of DDS to the average of the S&P500 Index (26.60), we can say DDS is valued rather cheaply.
DDS is valuated correctly with a Price/Forward Earnings ratio of 16.67.
64.52% of the companies in the same industry are more expensive than DDS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.43. DDS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 16.67 |
4.2 Price Multiples
DDS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DDS is cheaper than 77.42% 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 67.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.81 | ||
| EV/EBITDA | 6.18 |
4.3 Compensation for Growth
DDS has an outstanding profitability rating, which may justify a higher PE ratio.
DDS's earnings are expected to decrease with -28.23% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y-24.87%
EPS Next 3Y-28.23%
5. Dividend
5.1 Amount
With a yearly dividend of 0.24%, DDS is not a good candidate for dividend investing.
DDS's Dividend Yield is a higher than the industry average which is at 7.41.
Compared to an average S&P500 Dividend Yield of 2.36, 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 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 Years13
Div Non Decr Years33
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-24.87%
EPS Next 3Y-28.23%
419.51
+13.35 (+3.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners74.73%
Inst Owner Change-4.65%
Ins Owners23.17%
Ins Owner Change-2.06%
Market Cap6.59B
Analysts45.45
Price Target306 (-27.06%)
Short Float %10.94%
Short Ratio5.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Yearly Dividend25.75
Dividend Growth(5Y)111.67%
DP69.72%
Div Incr Years13
Div Non Decr Years33
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)-7.98%
PT rev (3m)-9.55%
EPS NQ rev (1m)2.43%
EPS NQ rev (3m)-1.97%
EPS NY rev (1m)0.13%
EPS NY rev (3m)-10%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)2.84%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 16.67 | ||
| P/S | 1 | ||
| P/FCF | 10.81 | ||
| P/OCF | 9.22 | ||
| P/B | 3.67 | ||
| P/tB | 3.67 | ||
| EV/EBITDA | 6.18 |
EPS(TTM)36.89
EY8.79%
EPS(NY)25.16
Fwd EY6%
FCF(TTM)38.82
FCFY9.25%
OCF(TTM)45.48
OCFY10.84%
SpS419.76
BVpS114.41
TBVpS114.41
PEG (NY)N/A
PEG (5Y)0.2
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
WACC10.1%
ROIC/WACC2.13
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)-17.49%
EPS 3Y-5.24%
EPS 5Y57.8%
EPS Q2Q%-12.69%
EPS Next Y-31.79%
EPS Next 2Y-24.87%
EPS Next 3Y-28.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y-0.17%
Revenue growth 5Y0.77%
Sales Q2Q%-3.43%
Revenue Next Year-0.67%
Revenue Next 2Y-0.78%
Revenue Next 3Y-3.52%
Revenue Next 5YN/A
EBIT growth 1Y-21.02%
EBIT growth 3Y-13.61%
EBIT growth 5Y34.96%
EBIT Next Year11.75%
EBIT Next 3Y-10.88%
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%