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DSW Inc
DSW : NYSE : Services
$22.78 | %
Today's Range: 22.11 - 22.89
Avg. Daily Volume: 2,036,000
02/12/16 - 4:01 PM ET

Financial Analysis


DSW INC's gross profit margin for the third quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. DSW INC has very weak liquidity. Currently, the Quick Ratio is 0.39 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.23% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)665.52669.87
EBITDA ($mil)81.4596.68
EBIT ($mil)63.3379.84
Net Income ($mil)39.349.55


Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)94.72230.78
Total Assets ($mil)1458.031450.23
Total Debt ($mil)0.00.0
Equity ($mil)1028.13995.88


Profitability Q3 FY15 Q3 FY14
Gross Profit Margin32.6235.14
EBITDA Margin12.2314.43
Operating Margin9.5211.92
Sales Turnover1.781.67
Return on Assets10.6310.38
Return on Equity15.0815.08
Debt Q3 FY15 Q3 FY14
Current Ratio2.362.53
Debt/Capital0.00.0
Interest Expense0.050.05
Interest Coverage1292.431774.16


Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)86.6188.18
Div / share0.20.19
EPS0.440.55
Book value / share11.8711.29
Institutional Own % n/a n/a
Avg Daily Volume2094862.02179065.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 23.57 for the Specialty Retail industry and a discount compared to the S&P 500 average of 21.13. To use another comparison, its price-to-book ratio of 2.09 indicates a discount versus the S&P 500 average of 2.51 and a significant discount versus the industry average of 10.56. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, DSW INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DSW 14.24 Peers 23.57   DSW 10.26 Peers 15.04

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

DSW is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

DSW is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DSW 15.39 Peers 20.11   DSW NM Peers 2.07

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

DSW is trading at a discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

DSW's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DSW 2.09 Peers 10.56   DSW 6.09 Peers 23.39

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DSW is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, DSW is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DSW 0.83 Peers 1.52   DSW 6.64 Peers 5.81

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

DSW is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

DSW has a sales growth rate that exceeds its peers.

 

 

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