DSW : NYSE : Services
$17.06 -0.06 | -0.35%
Today's Range: 16.85 - 17.3
Avg. Daily Volume: 1843200.0
07/21/17 - 4:02 PM ET

Financial Analysis


DSW INC's gross profit margin for the first quarter of its fiscal year 2017 has decreased 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 0.78 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

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 Q1 FY17 Q1 FY16
Net Sales ($mil)691.1681.27
EBITDA ($mil)63.3772.23
EBIT ($mil)42.552.48
Net Income ($mil)22.9730.01


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)256.76165.17
Total Assets ($mil)1471.461456.99
Total Debt ($mil)0.00.0
Equity ($mil)945.29933.57


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin31.2732.92
EBITDA Margin9.1610.6
Operating Margin6.157.7
Sales Turnover1.851.82
Return on Assets7.988.14
Return on Equity12.4212.71
Debt Q1 FY17 Q1 FY16
Current Ratio2.522.38
Debt/Capital0.00.0
Interest Expense0.050.05
Interest Coverage904.31070.98


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)80.2782.02
Div / share0.20.2
EPS0.280.36
Book value / share11.7811.38
Institutional Own % n/a n/a
Avg Daily Volume1864528.02175699.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 21.43 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 24.41. For additional comparison, its price-to-book ratio of 1.47 indicates a significant discount versus the S&P 500 average of 3.04 and a significant discount versus the industry average of 21.16. 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 12.13 Peers 21.43   DSW 6.60 Peers 13.19

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 11.41 Peers 18.12   DSW NM Peers 1.66

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 1.47 Peers 21.16   DSW 5.14 Peers 14.68

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 0.51 Peers 1.40   DSW 2.84 Peers 5.70

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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