DSW : NYSE : Services
$20.485 up 0.22 | 1.1%
Today's Range: 20.19 - 20.595
Avg. Daily Volume: 1508900.0
01/24/17 - 3:59 PM ET

Financial Analysis


DSW INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. DSW INC has weak liquidity. Currently, the Quick Ratio is 0.54 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 10.18% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)696.62665.52
EBITDA ($mil)86.8981.45
EBIT ($mil)66.2563.33
Net Income ($mil)38.9639.3


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)144.7794.72
Total Assets ($mil)1431.921458.03
Total Debt ($mil)0.00.0
Equity ($mil)923.421028.13


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin33.4432.62
EBITDA Margin12.4712.23
Operating Margin9.519.52
Sales Turnover1.891.78
Return on Assets7.3810.63
Return on Equity11.4515.08
Debt Q3 FY16 Q3 FY15
Current Ratio2.452.36
Debt/Capital0.00.0
Interest Expense0.060.05
Interest Coverage1162.331292.43


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)80.3786.61
Div / share0.20.2
EPS0.470.44
Book value / share11.4911.87
Institutional Own % n/a n/a
Avg Daily Volume1496282.01785672.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 22.09 for the Specialty Retail industry and a discount compared to the S&P 500 average of 25.41. To use another comparison, its price-to-book ratio of 1.79 indicates a discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 14.08. 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 16.20 Peers 22.09   DSW 7.73 Peers 13.93

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 13.02 Peers 20.93   DSW NM Peers 2.02

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 1.79 Peers 14.08   DSW -27.02 Peers -14.80

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 0.61 Peers 1.48   DSW 4.65 Peers 7.69

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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