DSW INC's gross profit margin for the fourth quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. DSW INC has weak liquidity. Currently, the Quick Ratio is 0.90 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.25% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||640.18||571.25|
|Net Income ($mil)||30.78||28.11|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||230.37||342.22|
|Total Assets ($mil)||1438.24||1421.24|
|Total Debt ($mil)||0.0||0.0|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||27.58||30.81|
|Return on Assets||10.65||10.64|
|Return on Equity||15.13||15.15|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||88.18||90.77|
|Div / share||0.19||0.13|
|Book value / share||11.47||11.0|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||963979.0||1299793.0|
BUY. The current P/E ratio indicates a discount compared to an average of 24.68 for the Specialty Retail industry and a premium compared to the S&P 500 average of 19.41. Conducting a second comparison, its price-to-book ratio of 3.17 indicates a premium versus the S&P 500 average of 2.74 and a significant discount versus the industry average of 76.37. The current price-to-sales ratio is well below the S&P 500 average and is also below 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.
|DSW 21.48||Peers 24.68||DSW NA||Peers 16.83|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
DSW is trading at a discount to its peers.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|DSW 17.24||Peers 22.11||DSW 1.91||Peers 1.87|
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.
Average. 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 trades at a valuation on par to its peers.
|DSW 3.17||Peers 76.37||DSW 3.04||Peers 21.70|
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.
|DSW 1.28||Peers 1.53||DSW 6.20||Peers 8.73|
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 discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
DSW significantly trails its peers on the basis of sales growth
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