DSW : NYSE : Services
$20.525 up 0.27 | 1.4%
Today's Range: 20.18 - 20.75
Avg. Daily Volume: 2102600.0
03/29/17 - 3:59 PM ET

Financial Analysis


DSW INC's gross profit margin for the fourth quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. DSW INC has weak liquidity. Currently, the Quick Ratio is 0.72 which 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 3.59% 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 FY16 Q4 FY15
Net Sales ($mil)674.62672.04
EBITDA ($mil)0.035.81
EBIT ($mil)24.6917.07
Net Income ($mil)30.5311.76


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)209.19266.22
Total Assets ($mil)1428.481369.11
Total Debt ($mil)0.00.0
Equity ($mil)937.49904.92


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin25.1127.35
EBITDA Margin0.05.32
Operating Margin3.662.54
Sales Turnover1.91.91
Return on Assets8.719.93
Return on Equity13.2815.03
Debt Q4 FY16 Q4 FY15
Current Ratio2.42.46
Debt/Capital0.00.0
Interest Expense0.00.04
Interest Coverage0.0416.32


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)80.3781.92
Div / share0.20.2
EPS0.380.14
Book value / share11.6611.05
Institutional Own % n/a n/a
Avg Daily Volume1956388.01387008.0

Valuation


HOLD. DSW INC's P/E ratio indicates a significant discount compared to an average of 23.07 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 26.33. To use another comparison, its price-to-book ratio of 1.64 indicates a discount versus the S&P 500 average of 2.93 and a significant discount versus the industry average of 18.99. 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 12.68 Peers 23.07   DSW NA Peers 14.72

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.

 

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DSW 12.03 Peers 18.92   DSW NM Peers 1.76

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 significant 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 1.64 Peers 18.99   DSW -1.31 Peers 41.97

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 0.57 Peers 1.53   DSW 3.48 Peers 7.77

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.

 

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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