DSW : NYSE : Services
$23.47 -2.60 | -9.80%
Today's Range: 23.23 - 24.86
Avg. Daily Volume: 1,759,100
08/30/16 - 12:18 PM ET

Financial Analysis

DSW INC's gross profit margin for the first quarter of its fiscal year 2016 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 0.56 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.

During the same period, stockholders' equity ("net worth") has decreased by 10.98% 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 FY16 Q1 FY15
Net Sales ($mil)681.27655.49
EBITDA ($mil)69.9191.45
EBIT ($mil)50.1673.57
Net Income ($mil)30.0147.37

Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)165.17342.17
Total Assets ($mil)1456.991521.96
Total Debt ($mil)0.00.0
Equity ($mil)933.571048.79

Profitability Q1 FY16 Q1 FY15
Gross Profit Margin32.935.23
EBITDA Margin10.2613.95
Operating Margin7.3611.22
Sales Turnover1.821.68
Return on Assets8.1410.64
Return on Equity12.7115.42
Debt Q1 FY16 Q1 FY15
Current Ratio2.382.83
Interest Expense0.050.04
Interest Coverage1023.691936.11

Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)82.0288.68
Div / share0.20.2
Book value / share11.3811.83
Institutional Own % n/a n/a
Avg Daily Volume1789371.02039078.0


HOLD. This stock's P/E ratio indicates a discount compared to an average of 22.82 for the Specialty Retail industry and a discount compared to the S&P 500 average of 25.13. To use another comparison, its price-to-book ratio of 2.28 indicates a discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 13.11. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DSW 19.10 Peers 22.82   DSW 10.29 Peers 15.61

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.


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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
DSW 17.31 Peers 20.58   DSW NM Peers 2.03

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

DSW is trading at a valuation on par with 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DSW 2.28 Peers 13.11   DSW -24.45 Peers -14.69

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DSW 0.80 Peers 1.57   DSW 3.65 Peers 8.00

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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