DILLARDS INC-CL A (DDS) Stock Fundamental Analysis
USA - NYSE:DDS - US2540671011 - Common Stock
616.25 USD
-7.6 (-1.22%)
610 USD
-6.25 (-1.01%)
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
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 better Return On Assets (15.62%) than 96.43% of its industry peers.
DDS has a better Return On Equity (30.00%) than 92.86% of its industry peers.
DDS has a Return On Invested Capital of 20.57%. This is amongst the best in the industry. DDS outperforms 96.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DDS is significantly above the industry average of 10.41%.
The 3 year average ROIC (28.72%) for DDS is well above the current ROIC(20.57%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.62% | ||
| ROE | 30% | ||
| ROIC | 20.57% |
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 better Profit Margin (8.74%) than 82.14% of its industry peers.
DDS's Profit Margin has improved in the last couple of years.
The Operating Margin of DDS (10.51%) is better than 71.43% of its industry peers.
In the last couple of years the Operating Margin of DDS has grown nicely.
With a Gross Margin value of 40.05%, DDS is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
DDS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.51% | ||
| PM (TTM) | 8.74% | ||
| GM | 40.05% |
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.
Compared to 1 year ago, DDS has less shares outstanding
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 an Altman-Z score of 8.66. This indicates that DDS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DDS (8.66) is better than 92.86% of its industry peers.
The Debt to FCF ratio of DDS is 0.68, which is an excellent value as it means it would take DDS, only 0.68 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.68, DDS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that DDS is not too dependend on debt financing.
DDS has a Debt to Equity ratio of 0.22. This is comparable to the rest of the industry: DDS outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 8.66 |
ROIC/WACC2.27
WACC9.05%
2.3 Liquidity
A Current Ratio of 2.68 indicates that DDS has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.68, DDS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
DDS has a Quick Ratio of 1.41. This is a normal value and indicates that DDS is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.41, DDS is doing good in the industry, outperforming 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The earnings per share for DDS have decreased strongly by -10.71% in the last year.
DDS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 57.80% yearly.
Looking at the last year, DDS shows a decrease in Revenue. The Revenue has decreased by -2.44% in the last year.
DDS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.77% yearly.
EPS 1Y (TTM)-10.71%
EPS 3Y-5.24%
EPS 5Y57.8%
EPS Q2Q%1.53%
Revenue 1Y (TTM)-2.44%
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
DDS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.41% yearly.
EPS Next Y-8.3%
EPS Next 2Y-7.54%
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.
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
A Price/Earnings ratio of 17.00 indicates a correct valuation of DDS.
Compared to the rest of the industry, the Price/Earnings ratio of DDS indicates a rather cheap valuation: DDS is cheaper than 82.14% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.86, DDS is valued a bit cheaper.
A Price/Forward Earnings ratio of 19.54 indicates a rather expensive valuation of DDS.
DDS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DDS is cheaper than 67.86% of the companies in the same industry.
DDS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 19.54 |
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.
Based on the Price/Free Cash Flow ratio, DDS is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.49 | ||
| EV/EBITDA | 10.05 |
4.3 Compensation for Growth
The excellent profitability rating of DDS may justify a higher PE ratio.
DDS's earnings are expected to decrease with -12.51% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-7.54%
EPS Next 3Y-12.51%
5. Dividend
5.1 Amount
With a yearly dividend of 0.19%, DDS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.13, DDS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.19, DDS pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
5.2 History
On average, the dividend of DDS grows each year by 111.67%, which is quite nice.
DDS has paid a dividend for at least 10 years, which is a reliable track record.
DDS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)111.67%
Div Incr Years14
Div Non Decr Years34
5.3 Sustainability
DDS pays out 71.85% of its income as dividend. This is not a sustainable payout ratio.
DDS's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP71.85%
EPS Next 2Y-7.54%
EPS Next 3Y-12.51%
616.25
-7.6 (-1.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.33%
Inst Owner Change-1.7%
Ins Owners23.24%
Ins Owner Change0.04%
Market Cap9.62B
Analysts45.45
Price Target369.75 (-40%)
Short Float %11.68%
Short Ratio6.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend25.75
Dividend Growth(5Y)111.67%
DP71.85%
Div Incr Years14
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.42%
Min EPS beat(2)12.59%
Max EPS beat(2)34.25%
EPS beat(4)4
Avg EPS beat(4)25.34%
Min EPS beat(4)12.59%
Max EPS beat(4)36.84%
EPS beat(8)7
Avg EPS beat(8)17.92%
EPS beat(12)11
Avg EPS beat(12)28.45%
EPS beat(16)15
Avg EPS beat(16)45.48%
Revenue beat(2)1
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-0.64%
Max Revenue beat(2)0.12%
Revenue beat(4)3
Avg Revenue beat(4)0.64%
Min Revenue beat(4)-0.64%
Max Revenue beat(4)2.94%
Revenue beat(8)4
Avg Revenue beat(8)-0.36%
Revenue beat(12)7
Avg Revenue beat(12)0.57%
Revenue beat(16)11
Avg Revenue beat(16)1.46%
PT rev (1m)0%
PT rev (3m)16.94%
EPS NQ rev (1m)2.91%
EPS NQ rev (3m)10.92%
EPS NY rev (1m)10.68%
EPS NY rev (3m)20.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 19.54 | ||
| P/S | 1.46 | ||
| P/FCF | 12.49 | ||
| P/OCF | 11.22 | ||
| P/B | 5.01 | ||
| P/tB | 5.01 | ||
| EV/EBITDA | 10.05 |
EPS(TTM)36.26
EY5.88%
EPS(NY)31.54
Fwd EY5.12%
FCF(TTM)49.36
FCFY8.01%
OCF(TTM)54.94
OCFY8.91%
SpS421.89
BVpS122.94
TBVpS122.94
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.62% | ||
| ROE | 30% | ||
| ROCE | 25.4% | ||
| ROIC | 20.57% | ||
| ROICexc | 37.03% | ||
| ROICexgc | 37.03% | ||
| OM | 10.51% | ||
| PM (TTM) | 8.74% | ||
| GM | 40.05% | ||
| FCFM | 11.7% |
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 Turnover1.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 49.45% | ||
| Cap/Sales | 1.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.74% | ||
| Profit Quality | 133.85% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 8.66 |
F-Score5
WACC9.05%
ROIC/WACC2.27
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-8.3%
EPS Next 2Y-7.54%
EPS Next 3Y-12.51%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.44%
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-13.13%
EBIT growth 3Y-13.61%
EBIT growth 5Y34.96%
EBIT Next Year22.74%
EBIT Next 3Y-0.59%
EBIT Next 5YN/A
FCF growth 1Y-18.41%
FCF growth 3Y-19.67%
FCF growth 5Y18.42%
OCF growth 1Y-19.65%
OCF growth 3Y-17.68%
OCF growth 5Y14.36%